Analysis: Dell struggles with supply-chain shift


Michael Dell is on strange grounds. Sometimes apologetic and at times blustery, the doyen of supply- chain efficiency and his chief financial officer stumbled to find the right words to explain why Dell Inc. missed its fiscal fourth quarter revenue target.

Forget about the tortuous explanations that emerged from Dell’s conference call with analysts Thursday (Feb. 28). What it boils down to is the difficulty Dell is having transitioning its business from a direct-sale system that relied on a single but highly efficient supply chain structure into a more diverse design, manufacturing and—direct and retail—sales system.


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