Dell Computer Corp (No. 48 on the Fortune 500 at the time of writing) used Kanban to reduce raw material shipping expenses, lower raw material prices and gain pricing advantages. Dell insisted that suppliers warehouse the bulk of required components within 15 minutes of a Dell factory. In 1997, Dell estimated that the cost benefits permitted them to undercut competitor prices for finished computers by 10% to 15%. Dell also benefited from any rapid reduction in raw material prices attributable t...

BPIR Categories

5.5.2 Manage inventories
5.3.3 Move materials & resources
5.2.2 Work with suppliers/outsourced contractors

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