Dell makes more procurement, supply chain changes
Hires former Solectron CEO to head new operations unit
By Dave Hannon -- Purchasing, 2/16/2007 4:07:00 PM
Dell recently announced that it has hired Michael Cannon away from contract manufacturer Solectron to head its newly formed global operations organization, which consolidates manufacturing, supply chain and procurement globally.
Cannon's responsibilities will include Dell's nine manufacturing plants in five countries, including the U.S. Dell is in the process of adding new plants in Poland, India and Brazil. The move brings Dell away from its regionally-focused manufacturing reporting structure.
``This is a first step in perhaps Dell trying to regain the supply chain advantage they had and lost,'' said Brent Bracelin, an analyst with Pacific Crest Securities in Portland, Ore. in a recent Bloomberg report. “Michael Dell is bringing in someone with very good skills sets in the commodity supply chain and that should give investors some confidence they could streamline as they work to have a better cost structure than their competitors.''
Dell has seen a whirlwind of organizational changes of late, including several in its supply chain and procurement operations. In December, Dell hired Dick Conrad as its vice president of worldwide procurement. Dell in January said it would shift its supply chain operations to Singapore.
A spokesman for Dell told Purchasing Conrad will be located in Singapore and have responsibility for certain parts of the procurement process while reporting to Dell's two senior vice presidents of procurement, Martin Garvin and Glenn Neland. Neland is retiring, according to the Dell spokesman.
Dell also this week hired Motorola's former handset chief, Ron Garriques, as president of its consumer business.
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