1996 revenues: $7.8 billion (47% increase)

1st quarter 1997: $2.6 billion (63% increase)

Human
Material
Financial
Informational

Human

Dell employs 10,350 people. It outsources functions such as warehousing to specialist knowledge companies like Caliber Logistics Inc.

Caliber Logistics Inc. can be found at:

http://www.calibersys.com/logistic/homepage.HTM

Material

Dell's raw materials are thousands of complex third-party components which are assembled into customer-specified computer systems. Dell suppliers keep their components warehoused within 16 minutes of Dell factories to expedite assembly. Dell ships its computers quickly. For example, Dell computer parts are around 60 days newer than Compaq’s parts. This can be a significant period in the fast-moving computer business.

Financial

Computer component prices decrease quickly. It thus makes sense not to keep cash tied up in inventory that is losing its value. To accomplish this, your throughput must be fast. Dell processes credit card orders within 24 hours. This compares with 35 days for Compaq. This strategy gives Dell a 6% profit advantage over Compaq. You can find out more about Dell and its operations at the company's site http://www.dell.com

Informational

Dell meets its biggest customers regularly, identifies their requirements, and advises them on new technology. This generates orders for Dell's most advanced, usually higher-margin products. Dell briefs middle managers on minimizing inventories and maximizing return on capital. Extensive management information systems mean that managers can instantly calculate the cost or benefit to Dell of their decisions.