In fifteen pages Dell Computers and its Solectron supplier are discussed in terms of their relationship of interdependence, each company's culture, this as a contributing factor to their relationship, how Dell's supply chain is enhanced as a result of their agreement and what if anything could improve relations. Twelve soruces are cited in the bibliography.
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man out of the equation. The company has always followed a direct approach - direct from the company to the user. (Hoovers, 2001). In fact, Dells marketing motto is Be
Direct. Solectron Corporation is a contract manufacturer that provides manufacturing and process engineering services to the electronics industries (Cutcliffe, 1996; Hoovers, 2002). It is the worlds #1 provider of such
services (Hoovers, 2002). The company builds electronic systems and subsystems for computers, telecommunications, networking gear, consumer electronics and chip manufacturing equipment (Hoovers, 2002). Solectrons services include warehousing, distribution, product design,
prototyping and supply-chain management services (Hoovers, 2002; ). Besides providing unknown hardware components, Solectron provides repair service and support for Dell and Dells customers (Solectron Corporation, 2002). Solectron has contracts
for various services and products with companies such as Hewlett-Packard, Sun Microsystems, Intel, Cisco, and Dell (Cutcliffe, 1996). Exactly what products and in some cases, what services, Solectron provides remain
unknown in many cases (Cutcliffe, 1996). The reason is simple - as a contract manufacturer, Solectron signs confidential agreements with each of the companies who outsource to them (Cutcliffe, 1996).
The confidentiality clauses preclude Solectron from disclosing exactly what products they build for these companies and in some cases, it prohibits disclosure of services provided (Cutcliffe, 1996). At the same
time, the brand that is outsourcing to Solectron does not want the buyer to know which of the component parts are really not manufactured by the company. Solectron is
contracted to provide repair services for Dell products that are both in warranty or out of warranty (Solectron Corporation, 2002). It also performs hardware upgrades for Dells mobile PCs and
the motherboards that are in Dell PC products (Solectron Corporation, 2002). The repair and upgrading work is done through Solectrons Global Services facilities with locations in three places: Austin, Texas,