[geeks] Ultra 20 thoughts

[Patrick Giagnocavo 717-201-3366]

On Tue, 2005-07-05 at 19:46, Lionel Peterson wrote:
> >I mean who knows, that's just what I read.
> 
> Well, *someone* owns the machines, I suspect Dell buys the machines from the builder Just In Time. Heck, the builder may even *store* the systems in a Dell facility until Dell buys them, and the sales might be to move otherwise idle inventory.

Dell requires their suppliers to keep stock in a warehouse near the Dell factory.  

Twice a day, the manufacturer will get an order from Dell (maybe more than twice a day for a large supplier).  Only when the item moves from local warehouse to Dell's factory does the item enter inventory.

This way, all the costs are pushed onto the supplier, and Dell has virtually no inventory while still being able to be sure they will not run out of parts.

--Patrick