Dell Optimises its Operation, Closes Austin Factory
Dell today detailed additional actions in its previously announced program to restore the competitive advantage of the company’s operating model, rationalize its operations and improve profitability and cash flow. “We believe we have a $3 billion opportunity to drive both productivity and efficiency,” said Michael Dell, Dell’s chairman and CEO. “We’ve analyzed the business and opportunity, so we know – without question – where our priorities should be. And as we’ve reignited growth in our business, we’re taking deliberate steps across the company to improve our competitive position.”
The actions Dell will take during Fiscal 2009 and beyond are expected to position the company to further accelerate growth in its five focus areas: global consumer, enterprise, notebooks, small and medium enterprise and emerging countries, while improving profitability and cash returns. As a part of a broader assessment of its global manufacturing and logistics network, the company will close its desktop manufacturing facility in Austin, Texas.
In addition, the company will take further actions to reduce total product costs across all areas, including design, manufacturing and logistics, materials and operating expenses. Dell expects that the initial benefits from these actions will begin to be realized in the second half of this fiscal year. Over the next three years, the company expects to achieve annualized savings of approximately $3 billion, and will use this benefit to strengthen its competitive position and improve profitability. The company also reaffirmed its previously announced plans to reduce global employee headcount by at least 8,800 and related operating expense. In the last nine months of the company’s fiscal 2008, it reduced headcount by 3,200, excluding acquisitions.
“We expect that these actions, along with the continuing rigor we’re applying to operating expense control throughout our operations, will result in an improved, world-class cost structure,” said Don Carty, Dell’s vice chairman and CFO.
The company also announced it is undertaking a strategic assessment of ownership alternatives for its Dell Financial Services financing activities. The assessment will primarily focus on the consumer and small/medium business revolving credit financing receivables and operations in the U.S., but may also include commercial leasing.
“We plan to look at alternatives that will strengthen the product offerings, enhance customer experience and improve DFS’ overall financial services capabilities in the most efficient way,” said Mr. Carty.
The outcome of the assessment will depend on the customer, capital and economic impact of alternative ownership structures. It is possible the assessment will result in no change to the ownership and/or operating structure. The company expects to complete the assessment in Q3 of the current fiscal year.
And yet another domestic plant closes down. I hate outsourcing. :mad:
yeah for sending all the jobs to india/middle east.........pretty sooon we gonna have to start moving there to find IT work.......
Screw that, closed down Punjab ville and stuff. This is ridiculous. Obviously its a huge part of their struggles. Put the building in the hands of the flawed. :ANGRY!:
Okay, I am goin to vent just a bit here ...
So many people on so many tech boards trash Dell and the other pre-build manufacturers.
This is bad press for the manufacturers. The millions of people who have not have bad experiences with the manufacturer do not post, for why would they? They are happy with what they got.
But when all is said and done, the bad press costs them in sales, even though their products are performing to better standards than other manufacturers.
Then people bitch when the company has to move to off-shore manufacturing to stay competitive?
I have purchased dozens of Dell machines for my network at work.
They are rock solid and completely reliable.
90% of the problem is that people screw up their computers and try to fix it themselves, and after failing are so exasperated by the attempt that they take it out on the Dell service people (whereever they are) and then trash them in online forums.
I have never had a problem with a tech support rep from India.
All of the issues (and I can count them on one hand) have been resolved the same day.
All replacement parts I have needed were there the next day.
I do not know what people expect from these manufacturers, but you can't have you cake and eat it too.
the only reasion most dell users dont post on forums about problems, most dell users DONT EVEN KNOW WHAT A WEB FORUM IS!!!!!! no im not kidding, you go as joe desktop who just uses his machien for email and work and you will find 99.99999999999999% of users got no clue what forums are, many assume its a "chat room" and just snort at them being of any value.
the reasion so many people on forums say "dell sucks" is because to anybody who builds systems themselves dell does suck.
my advice to people looking at dell systems, look at gateway/acer(same company now) better quility parts are used.
as to this , just as i said, soon we will all have to move to india or the like to find IT work because its all being out sorced......and to me thats bullshit, they wont lower prices, but their profits will go up, good for their investers but bad for the us ecoimy and US workers.
my honest openion is that the govt needs to put taxes on exporting jobs over seas by US companys, enough so the savings dont count/matter or there are no savings, because honestly back when my father was my age this NEVER would have happened, back then the govt was very much into keeping jobs at home!!!
today companys get incentives for sending jobs away......bullshit i say.....
I am not doubting your experience, but I have not had that kind of experience with all the Dell machines I use on our network. I've had to replace a couple of optical drives (and yes, it is cheaper to just get a replacement from a third party), but I've got Dell servers that have been in service for years that have required almost no maintenace at all.
Maybe I am just blessed ;)
I've got a Dell at my Auto shop that's been in service for five years. In an auto shop there's tons of horrid crap in the air. Never had a single hardware problem.
the biggist problems like i said are the horrible psu and optical drives, they are made by sony or liton, and are NOT the same as the retail drives, they are made to far lower specs, this is because its what dell spicificly orders, so you endup with drives that just stop reading disks, i got 2 behind me......
as to the servers, dell uses slitly better optical drives in their servers, not as good as ones u buy from newegg or the like but better then what their normal systems come with
and dell server psu's are margenly better thne the desktop/workstation ones as well, but again i have seen some go out, and when u remove them you can tell they suck, they are feather light compared to any decent brand psu like FSP/epower(topower),xCilo, or a stack of others, they use cheap light units for 2 reasions, 1-they cost less, 2-lower shiping cost due to ligher psu.
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