Dell segments its supply chain for efficiency

As part of a company initiative to remake its supply chain, Dell Inc. has begun segmenting its customer base by industry, customer type, and customer profitability. Sean Trainor, executive director of global supply chain and fulfillment, briefly discussed that initiative at the Supply Chain and Logistics Summit North America 2011 conference held in Dallas in early December.

Trainor said Dell segmented its supply chain for optimization and for executing lean approaches to reduce waste. Additional goals were to reduce operational complexity and increase Dell's cost leadership in the computer industry. Moreover, when Dell began selling more of its products through retail channels four years ago, it reorganized globally based on business segments. The computer maker previously had been organized on a regional basis.

As a result of this transformation, Trainor said, customer loyalty has increased 40 percent, resulting in additional business for his company.