This preview shows page 1. Sign up to view the full content.
Unformatted text preview: s moves
forward automatically, keeping
Dell’s costs and inventories very
low. It turns its inventory 75 times a year, compared to 24 times for its
industry, and its receivables
turnover of 11 times is also high—
twice the industry’s.
Supply chain software, which
is now migrating to the Internet, is
becoming essential for most companies. It brings together and
automates a company’s order-taking, purchasing, inventory management, and payment processes.
A well-designed system shortens
product cycle times by helping to
anticipate demand, finding suppliers to provide materials on time,
and identifying the least costly
delivery method and routing.
Because companies’ needs and
specific business processes differ
widely, implementation can be difficult. Compare Dell and Lipton
Tea, for example. Both could probably use a supply chain application’s standard procurement module for basic office supplies, but 605 In Practice
ordering Dell’s computer parts
requires a different model from
View Full Document