Able Quote by Jonathan Raymond
“It was Dell who came out with their build-on-demand process, where they are able to keep a zero balance inventory. That means they don't purchase parts until an order is received. That is a way to greatly reduced overhead, since you don't need to warehouse parts or overstock parts you may not end up using.”
About This Quote
Source Business: Dell Supply Chain Strategy, early 2000s
Dell’s build‑on‑demand model lets them order parts only after a sale, eliminating inventory costs and reducing waste.
In simple terms: Order parts after sale, avoid inventory.
Key Takeaway
Adopt just‑in‑time ordering.
Themes
efficiency
inventory management
lean operations
Mood
analytical
pragmatic
Type
business
operational
When to use this quote
- electronics manufacturing
- custom PC sales
- e‑commerce fulfillment
Key Concepts
just‑in‑time
cost reduction
supply chain agility
Questions to Reflect On
- How can smaller firms emulate this model?
- What risks arise from zero inventory?
A Different Perspective
Requires reliable suppliers and fast logistics.
