Dell to sell factories
Dell plans to sell its computer factories around the world, a move to sharply overhaul a production model that was long a hallmark of the PC giant's strategy, but is no longer competitive, says The Wall Street Journal.
The plan is the latest sign of changes in the global PC business, and the increasing pressure on Dell to improve its profitability.
Dell, which led the industry in lean manufacturing approaches and build-to-order PC manufacturing, now finds itself lagging rivals in wringing the most savings by outsourcing operations to production partners.
China's outsourcing appeal dims
The model of outsourcing to China emerged at a time when oil was going for $20 a barrel. In the past few months, oil has been trading at about $110, and many experts say it will eventually hit $200 mark, reports Washington Post.
Soaring energy costs, the falling dollar and inflation are cutting into what US manufacturers call the China price - the 40% to 50% cost advantage once offered by Chinese producers.
"The export model that has powered China and other Asian countries for three decades will be compromised if fuel prices continue to rise," said Stephen Jen, an MD for Morgan Stanley.
Elemica talks outsourcing
Elemica, business process network for the external supply chain, announces that Rick Bushnell, VP of Elemica, will participate in a panel discussion on outsourcing at the 11th Annual Chemical Industry IT Forum on 29 September, says IT News Online.
The conference, to be held in Philadelphia, will focus on leveraging IT to address global challenges and opportunities facing the chemical industry.
Bushnell says: "As the trend toward outsourcing business processes continues to grow, organisations are discovering that their choice of IT and software vendor is key in minimising the risks and maximising the benefits associated with their overall outsourcing strategy."
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