Dell relocated operations center to Chengdu, Sichuan for cost savings

To reduce production costs, the development of the Southwest market and other reasons, Dell will be the new operating center in Chengdu.　　However, it is not alone.　　|CBN journalist Sherinning, nearly a year after shutting down the plant at Winston Selem in North Carolina State, Dell has set up a new manufacturing and operations center in China. The new centre, located in the western part of Chengdu, is scheduled to start operation in 2011 and the total number of employees will gradually increase to 3000.　　In addition to production, Dell Chengdu Operations Center will also be responsible for sales and customer service, mainly for the southwest China market. This is Dell's second operating center in China following the Xiamen Operations center. Dell's Xiamen Operations Center includes two computer production sites, an Enterprise Service command center, and a Dell International Service center.　　In addition, Dell has established a global product design Center in Shanghai, the world's largest design center outside of the United States. It turned out that Dell would not outsource much of the production, as legend has it, after all, its own factories were more assured. After Dell announced the closure of the North Carolina State plant in October 2009, and outsourced some of its capacity to countries such as Mexico, rumors of a shutdown of more factories were at once very dusty.　　On。 The closed North Carolina plant has sparked lawsuits in the area as more than 400 people have lost their jobs. But Dell is adamant that it is part of a $4 billion cut in annual operating costs.　　At the same time, there are two other assembly plants in Central Texas as well as in the Asheville of Tennessee State. It now appears that Dell will move more production functions to China. This is the best option for a manufacturing company that needs to reduce production and operating costs without losing market share. Compared with Xiamen, Chengdu has its own advantages in terms of labor costs. Said Midha, president of the Greater China region.　　After the operation center is put into use, Dell's manufacturing base in Xiamen can better serve other regional markets and international markets in China. These are not all the reasons Dell has set up the new plant in Chengdu.　　IDC, a consultancy, predicts that by 2014, the demand for computer products in western China will grow by 21% annually, another consumer center in China's PC market, after the economically developed regions and coastal cities.　　Before Dell, there were already people in the southwest.　　At the end of December 2008, Hewlett-Packard announced the establishment of a new computer production base in Chongqing for the production of desktop and notebook products. The factory in Chongqing's West Wing micro-electric Park will be Hewlett-Packard's first factory to invest in western China, and it has become one of the largest investment projects in Zhongqing.　　The project is expected to be operational by the end of 2010 with a planned annual output of 4 million units.　　The two PC Giants will inevitably start a new round of close hand-to-hand combat in China's southwestern market, which has seen China as the most important overseas market.　Dell's range of action backgrounds for cost cutting　In January 2007, when Michael Dell, the company's founder, became CEO, the company's total employee size had broken 91,500, and in the 2008 fiscal year, the company's operating expenses surged 49% from the previous fiscal year, while revenue grew at a rate of only 10% per cent.　　Dell began a series of massive cost-cutting moves.　　01 Close the factory in Limerick, Ireland.　　02 announced the closure of three factories in the United States, located in North Carolina State, Winston Selem, Central Texas and Tennessee State Asheville.　　03 Improve design and production processes, take more pre-set systems for the manufacture of some products, and give up the practice of order production.　　04 sold Polish factories to Foxconn, the Hon Hai Group.　　05 The SME products, consumer products, two departments merged into one. 06 total staff reduction of nearly 10,000 employees.