Dell Announces Shift Toward More Ocean Freight
Computer giant Dell, which set the supply chain standard for speed with its build-to-order business model, is advancing a new strategic approach and philosophy that will shift huge numbers of shipments from air to ocean, a fundamental change that, for a leader in logistics, could set a touchstone for distribution in the technology, The Journal of Commerce reports in this week’s cover story.
Dell’s diversification from strictly direct-to-consumer sales to include more retailers has led to increased outsourcing and a recent announcement to begin to move from costly air to slower ocean freight. If it is successful the practice will likely become more common, as the company strives to compete with rivals such as Hewlett-Packard, which replaced Dell as the world’s No. 1 computer maker and relies heavily on ocean shipping.
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