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to discuss。 This book was largely written on a Dell Inspiron 600m notebook; service 
tag number 9ZRJP41。 As part of the research for this book71 visited withthe management 
team at Dell near Austin; Texas。 I shared with them the ideas in this book and in 
return I asked for one favor: I asked them to trace for me the entire global supply 
chain that produced my Dell notebook。 Here is their report: My computer was conceived 
when I phoned Dell's 800 number on April 2; 2004; and was connected to sales 
representative Mujteba Naqvi; who immediately entered my order into Dell's order 
management system。 He typed in both the type of notebook I ordered as well as the 
special features I wanted; along with my personal information; shipping address; 
billing address; and credit card information。 My credit card was verified by Dell 
through its work flow connection with Visa; and my order was then released to Dell's 
production system。 Dell has six factories around the world…in Limerick; Ireland; 
Xiamen; China; Eldorado do Sul; Brazil; Nashville; Tennesee; Austin; Texas; and 
Penang; Malaysia。 My order went out by e…mail to the Dell notebook factory inMalaysia; 

where the parts for the computer were immediately ordered from the supplier logistics 
centers (SLCs) next to the Penang factory。 Surrounding every Dell factory in the world 
are these supplier logistics centers; owned by the different suppliers of Dell parts。 
These SLCs are like staging areas。 If you are a Dell supplier anywhere in the world; 
your job is to keep your SLC full of your specific parts so they can constantly be 
trucked over to the Dell factory for just…in…time manufacturing。 
〃In an average day; we sell 140;000 to 150;000 computers;〃 explained Dick Hunter; 
one of Dell's three global production managers。 〃Those orders come in over Dell。com 
or over the telephone。 As soon these orders come in; our suppliers know about it。 
They get a signal based on every component in the machine you ordered; so the supplier 
knows just what he has to deliver。 If you are supplying power cords for desktops; 
you can see minute by minute how many power cords you are going to have to deliver。〃 
Every two hours; the Dell factory in Penang sends an e…mail to the various SLCs nearby; 


telling each one what parts and what quantities of those parts it wants delivered 
within the next ninety minutes…and not one minute later。 Within ninety minutes; trucks 
from the various SLCs around Penang pull up to the Dell manufacturing plant and unload 
the parts needed for all those notebooks ordered in the last two hours。 This goes 
on all day; every two hours。 As soon as those parts arrive at the factory; it takes 
thirty minutes for Dell employees to unload the parts; register their bar codes; and 
put them into the bins for assembly。 〃We know where every part in every SLC is in 
the Dell system at all times;〃 said Hunter。 
So where did the parts for my notebook come from? I asked Hunter。 To begin with; he 
said; the notebook was codesigned in Austin; Texas; and in Taiwan by a team of Dell 
engineers and a team of Taiwanese notebook designers。 〃The customer's needs; required 
technologies; and Dell's design innovations were all determined by Dell through our 
direct relationship with customers;〃 he explained。 〃The basic design of the 
motherboard and case…the basic functionality of your machine…was designed to those 
specifications by an ODM 'original design manufacturer' in Taiwan。 We put our 
engineers in their facilities and they come to Austin and we actually codesign these 
systems。 This global teamwork 

brings an added benefit…a globally distributed virtually twenty…four…hour…per…day 
development cycle。 Our partners do the basic electronics and we help them design 
customer and reliability features that we know our customers want。 We know the 
customers better than our suppliers and our competition; because we are dealing 
directly with them every day。〃 Dell notebooks are completely redesigned roughly every 
twelve months; but new features are constantly added during the year…through the 
supply chain…as the hardware and software components advance。 
It happened that when my notebook order hit the Dell factory in Penang; one part was 
not available…the wireless card…due to a quality control issue; so the assembly of 
the notebook was delayed for a few days。 Then the truck full of good wireless cards 
arrived。 On April 13; at 10:15 a。m。; a Dell Malaysia worker pulled the order slip 
that automatically popped up once all my parts had arrived from the SLCs to the Penang 
factory。 Another Dell Malaysia employee then took out a 〃traveler〃…a special carrying 
tote designed to hold and protect parts…and started plucking all the parts that went 
into my notebook。 
Where did those parts come from? Dell uses multiple suppliers for most of the thirty 
key components that go into its notebooks。 That way if one supplier breaks down or 
cannot meet a surge in demand; Dell is not left in the lurch。 So here are the key 
suppliers for my Inspiron 600m notebook: The Intel microprocessor came from an Intel 
factory either in the Philippines; Costa Rica; Malaysia; or China。 The memory came 
from a Korean…owned factory in Korea (Samsung); a Taiwanese…owned factory in Taiwan 
(Nanya); a German…owned factory in Germany (Infineon); or a Japanese…owned factory 
in Japan (Elpida)。 My graphics card was shipped from either a Taiwanese…owned factory 
in China (MSI) or a Chinese…run factory in China (Foxconn)。 The cooling fan came from 
a Taiwanese…owned factory in Taiwan (CCI or Auras)。 The motherboard came from either 
a Korean…owned factory in Shanghai (Samsung); a Taiwanese…owned factory in Shanghai 


(Quanta); or a Taiwanese…owned factory in Taiwan (Compal or Wistron)。 The keyboard 
came from either a Japanese…owned company in Tianjin; China (Alps); a Taiwanese…owned 
factory in Shenzen; China (Sunrex); or a Taiwanese417 
owned factory in Suzhou; China (Darfon)。 The LCD display was made in either South 
Korea (Samsung or LG。Philips LCD); Japan (Toshiba or Sharp); or Taiwan (Chi Mei 
Optoelectronics; Hannstar Display; or AU Optronics)。 The wireless card came from 
either an American…owned factory in China (Agere) or Malaysia (Arrow); or a 
Taiwanese…owned factory in Taiwan (Askey or Gemtek) or China (USI)。 The modem was 
made by either a Taiwanese…owned company in China (Asustek or Liteon) or a Chinese…run 
company in China (Foxconn)。 The battery came from an American…owned factory in 
Malaysia (Motorola); a Japanese…owned factory in Mexico or Malaysia or China (Sanyo); 
or a South Korean or Taiwanese factory in either of those two countries (SDI or Simplo)。 
The hard disk drive was made by an American…owned factory in Singapore (Seagate); 
a Japanese…owned company in Thailand (Hitachi or Fujitsu); or a Japanese…owned 
factory in the Philippines (Toshiba)。 The CD/DVD drive came from a South Korean…owned 
company with factories in Indonesia and the Philippines (Samsung); a Japanese…owned 
factory in China or Malaysia (NEC); a Japanese…owned factory in Indonesia; China; 
or Malaysia(Teac); or a Japanese…owned factoryin China (Sony)。 The notebook carrying 
bag was made by either an Irish…owned company in China (Tenba) or an American…owned 
company in China (Targus; Samsonite; or Pacific Design)。 The power adapter was made 
by either a Thai…owned factory in Thailand (Delta) or a Taiwanese; Korean; or 
American…owned factory in China (Liteon; Samsung; or Mobility)。 The power cord was 
made by a British…owned company with factories in China; Malaysia; and India (Volex)。 
The removable memory stick was made by either an Israeli…owned company in Israel 
(M…System) or an American…owned company with a factory in Malaysia (Smart Modular)。 
This supply chain symphony…from my order over the phone to production to delivery 
to my house…is one of the wonders of the flat world。 
〃We have to do a lot of collaborating;〃 said Hunter。 〃Michael 'Dell' personally knows 
the CEOs of these companies; and we are constantly working with them on process 
improvements and real…time demand/supply balancing。〃 Demand shaping goes on 
constan

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