Supply Chain Star Dell Announces Shift Toward More Ocean Freight, Reports The Journal of Commerce
Poster: SySAdmin
Posted on April 26, 2010 at 1:07:01 PM
Supply Chain Star Dell Announces Shift Toward More Ocean Freight, Reports The Journal of Commerce
NEWARK, N.J., April 26 -- Computer giant Dell, which set the supply chain standard for speed with its build-to-order business model, is advancing a new strategic approach and philosophy that will shift huge numbers of shipments from air to ocean, a fundamental change that, for a leader in logistics, could set a touchstone for distribution in the technology, The Journal of Commerce reports in this week's cover story.
(Photo: http://www.newscom.com/cgi-bin/prnh/20100426/NY92942 )
Dell's diversification from strictly direct-to-consumer sales to include more retailers has led to increased outsourcing and a recent announcement to begin to move from costly air to slower ocean freight. If it is successful the practice will likely become more common, as the company strives to compete with rivals such as Hewlett-Packard, which replaced Dell as the world's No. 1 computer maker and relies heavily on ocean shipping.
However, the shift in Dell's core supply chain management business model comes with risks - damage, order cancellation, product value decline during shipment - as well as higher inventory carrying costs. Dell's inventory turns -- a formula dividing the cost of goods sold by its average quarterly inventory -- are its shining star and one that stands to fade with a longer supply chain.
In today's Cover Story, The Journal of Commerce analyzes the potential impact of Dell's supply chain shift on the company, its suppliers and the shipping world.
To view daily news visit http://www.joc.com. For all media enquires, including article reprints, please contact Editorial Director Paul Page.
Since 1827, The Journal of Commerce has been the most trusted source of intelligence for international logistics executives to help them plan global supply chains and better manage day-to-day transportation of goods and commodities in the United States and internationally. To become a member of The Journal of Commerce click here. JOC members have access to our weekly print and digital magazine and Web site, as well as a 10% discount on all JOC Events and trade shows, UBM Global Trade Directories and select PIERS products. Authoritative editorial content in the form of daily news, weekly analysis and regular features ensure our members have the information and data necessary to understand the issues facing trucking, rail and maritime transportation. Members enjoy access to "By the Numbers," an exclusive weekly compilation of key industry statistics that provides detailed views of current market trends across all modes. Regular market intelligence reports -- utilizing PIERS trade data -- include Top 100 Imports and Exporters, quarterly Top 40 Container lines, Transpacific and Transatlantic Maritime Forecasts and Top Container Ports and Terminals. Market-sector supplements, including Breakbulk, Cool Cargoes, 3PL, JOC Guide to Trucking and others, ensure all modes are comprehensively covered.
About UBM Global Trade - UBM Global Trade, formerly Commonwealth Business Media, Inc., has been the leading provider of proprietary data, news, business intelligence and analytical content supporting commercial maritime, rail, trucking, warehousing and logistics industries worldwide since 1827. The company's portfolio of more than 100 online, print and interactive workflow business solutions includes The Journal of Commerce, The Journal of Commerce Events, PIERS Global Intelligence Solutions and an array of international trade and transportation databases and directories. UBM Global Trade, a subsidiary of United Business Media Limited, is headquartered in East Windsor, NJ, with offices throughout the United States and in Canada and Hong Kong. For more information, explore http://www.ubmglobaltrade.com or call 800-221-5488 (+1-609-371-7700 outside the U.S. and Canada).
About United Business Media Limited - UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring, and the development and monetization of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities -- from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists -- with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries is organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to http://www.ubm.com.
Photo: http://www.newscom.com/cgi-bin/prnh/20100426/NY92942
PRN Photo Desk, photodesk@prnewswire.com
Source: The Journal of Commerce
CONTACT: Paul Page, The Journal of Commerce, Editorial Director,
+1-202-355-1170, ppage@joc.com
Web Site: http://www.joc.com/
NEWARK, N.J., April 26 -- Computer giant Dell, which set the supply chain standard for speed with its build-to-order business model, is advancing a new strategic approach and philosophy that will shift huge numbers of shipments from air to ocean, a fundamental change that, for a leader in logistics, could set a touchstone for distribution in the technology, The Journal of Commerce reports in this week's cover story.
(Photo: http://www.newscom.com/cgi-bin/prnh/20100426/NY92942 )
Dell's diversification from strictly direct-to-consumer sales to include more retailers has led to increased outsourcing and a recent announcement to begin to move from costly air to slower ocean freight. If it is successful the practice will likely become more common, as the company strives to compete with rivals such as Hewlett-Packard, which replaced Dell as the world's No. 1 computer maker and relies heavily on ocean shipping.
However, the shift in Dell's core supply chain management business model comes with risks - damage, order cancellation, product value decline during shipment - as well as higher inventory carrying costs. Dell's inventory turns -- a formula dividing the cost of goods sold by its average quarterly inventory -- are its shining star and one that stands to fade with a longer supply chain.
In today's Cover Story, The Journal of Commerce analyzes the potential impact of Dell's supply chain shift on the company, its suppliers and the shipping world.
To view daily news visit http://www.joc.com. For all media enquires, including article reprints, please contact Editorial Director Paul Page.
Since 1827, The Journal of Commerce has been the most trusted source of intelligence for international logistics executives to help them plan global supply chains and better manage day-to-day transportation of goods and commodities in the United States and internationally. To become a member of The Journal of Commerce click here. JOC members have access to our weekly print and digital magazine and Web site, as well as a 10% discount on all JOC Events and trade shows, UBM Global Trade Directories and select PIERS products. Authoritative editorial content in the form of daily news, weekly analysis and regular features ensure our members have the information and data necessary to understand the issues facing trucking, rail and maritime transportation. Members enjoy access to "By the Numbers," an exclusive weekly compilation of key industry statistics that provides detailed views of current market trends across all modes. Regular market intelligence reports -- utilizing PIERS trade data -- include Top 100 Imports and Exporters, quarterly Top 40 Container lines, Transpacific and Transatlantic Maritime Forecasts and Top Container Ports and Terminals. Market-sector supplements, including Breakbulk, Cool Cargoes, 3PL, JOC Guide to Trucking and others, ensure all modes are comprehensively covered.
About UBM Global Trade - UBM Global Trade, formerly Commonwealth Business Media, Inc., has been the leading provider of proprietary data, news, business intelligence and analytical content supporting commercial maritime, rail, trucking, warehousing and logistics industries worldwide since 1827. The company's portfolio of more than 100 online, print and interactive workflow business solutions includes The Journal of Commerce, The Journal of Commerce Events, PIERS Global Intelligence Solutions and an array of international trade and transportation databases and directories. UBM Global Trade, a subsidiary of United Business Media Limited, is headquartered in East Windsor, NJ, with offices throughout the United States and in Canada and Hong Kong. For more information, explore http://www.ubmglobaltrade.com or call 800-221-5488 (+1-609-371-7700 outside the U.S. and Canada).
About United Business Media Limited - UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring, and the development and monetization of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities -- from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists -- with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries is organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to http://www.ubm.com.
Photo: http://www.newscom.com/cgi-bin/prnh/20100426/NY92942
PRN Photo Desk, photodesk@prnewswire.com
Source: The Journal of Commerce
CONTACT: Paul Page, The Journal of Commerce, Editorial Director,
+1-202-355-1170, ppage@joc.com
Web Site: http://www.joc.com/