Ramblings & ephemera

What Dell learned from Wal-Mart

From Fake Steve Jobs’ “Why Dell will not bounce back” (11 May 2008):

On the manufacturing side, Dell figured out faster than the others in its space how to squeeze component suppliers and play them off each other. They brought in loads of former Wal-Mart people to refine this practice. One example: If you want to sell parts to Dell you must agree to ship your parts to Round Rock, Texas, and store them in Dell-owned warehouses (paying rent to Dell!) and to hold them until the very moment Dell needs them at which time you drive your tractor trailer to the Dell manufacturing facility and unload your parts through the shipping bay — and only then, as the parts go across the threshold, does Dell take ownership of them. Thus you, Mr. Parts Supplier, end up paying rent to Dell for the privilege of carrying its inventory on your books. Nice, right?

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