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Dell Looking to Shed Manufacturing Facilities?

Category: Manufacturers
Posted: September 5, 2008 07:48PM
Author: Nemo

AMD may not be the only company with an Asset Lite strategy. If reports from the Wall Street Journal are true, Dell could be looking to sell a large portion of its worldwide manufacturing facilities over the next year and a half. Dell wouldn't comment on the speculation but a spokesman did point out that the company has publicly stated its intention to strengthen its ties to original design manufacturers and increase its use of third parties to make some of its products. This would be a significant change for Dell as it built its business and reputation on being able to tightly control its own manufacturing process and delivering a better range of customized computers than its competitors. Dell's stock recently took a hit as its performance fell below analysts' expectations.  Although revenues were up, margins had narrowed, so this rumor may be based on Dell's intention to become leaner and moving to greater use of ODMs could be a way to reduce costs and trim the balance sheet at the same time.



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