Dell refocuses on supply chain

Dell has formed a new global operation to take responsibility for all manufacturing, procurement and supply chain activities, including the vendor's nine manufacturing facilities. 

The new group will be headed up by Michael Cannon, who most recently served as chief executive for Solectron, the world's second largest contract manufacturer.

Each of Dell's factories was managed regionally and had its own procurement division.

The creation of the new group is the first move by Dell founder Michael Dell since he was reappointed chief executive last month.  

Dell recently ceded its position as the world's largest PC manufacturer to HP. The company traditionally uses its supply chain and manufacturing model as a competitive advantage. But rival vendors have copied most of Dell's processes. 

Cannon is expected to help Dell accomplish new manufacturing efficiencies, but analysts have pointed out that Dell's main issues lay in its limited technology and design innovations. 

The firm also lacks a retail presence where buyers can see and touch a new computer before they purchase it.

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