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Dell’s Supply Chain
Dell’s supply chain works as follows. After a customer places an
order, either by phone or through the Internet on www.dell.com, Dell processes
the order through financial evaluation (credit checking) and configuration
evaluations (checking the feasibility of a specific technical configuration),
which takes two to three days, after which it sends the order to one of its
manufacturing plants in Austin, Texas. These plants can build, test, and
package the product in about eight hours. The general rule for production is
first in, first out, and Dell typically plans to ship all orders no later than
five days after receipt. There are, however, some exceptions. For example, Dell
may manipulate the schedule when there is a need to replace defective units or
when facing large customers with specific service-level agreements (who have
nonstandard quoted manufacturing lead times) for their orders.
