Dell has hired the CEO of Solectron to the newly
created position of president of its global operations. Solectron is a
leading provider of electronics manufacturing services and counts Dell as
one of its many big name customers.
The hiring of Michael Cannon is the first major move Dell’s made since
founder Michael Dell replaced
Kevin Rollins as CEO in January. Cannon was Solectron’s CEO the past four
years. He will report directly to Michael Dell.
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“As we continue to grow worldwide, it is important that we increase our
ability, via the Direct Model, to manufacture close to our customer and
fully integrate our supply chain into one global organization,” Dell said in
a statement. “This will allow us to drive for even greater excellence in
quality, cycle time and delivered cost. We will innovate and adapt our
supply chain model to help drive differentiated product design,
manufacturing and distribution models.”
Mr. Cannon will lead a new global organization that will combine all of
Dell’s manufacturing, procurement and supply chain activities. Prior to Solectron, Cannon was CEO of storage maker Maxtor (now part of Seagate), and also worked at IBM’s storage systems
division.
Dell spokesman Bob Pearson said the move is an
indication of Dell’s commitment to improving the direct model of selling
that’s made the company successful. “We think we can do even better,”
Pearson told internetnews.com. “There are about a billion people
online today and over the next ten years another billion will be getting
online in many of the fastest-growing countries. It will be more important
than ever for us to be streamlined and nimble, and innovate with our
distribution model.”
Dell, with nine manufacturing plants in five countries including the
US, can undoubtedly make good use of Cannon’s expertise, which spans more
than 25 years in technology and manufacturing. The company is planning
to add new plants in Poland, India and Brazil as part of its growth plans in
those emerging markets.
Solectron announced today that its Chief Financial Officer Paul Tufano
has been named interim CEO while a global search is conducted for a full
time CEO to replace Cannon.
Separately, Pearson would not confirm a report today by the Austin
American-Statesman that John Hamlin, Dell’s senior vice president of global
online business and marketing division, is leaving the company.
The report
quoted an internal Dell email that said Hamlin decided to leave rather than
oversea the company’s new consumer group. “We haven’t announced anything on
John Hamlin,” said Pearson. “He’s a member of the executive committee and
when we have anything to announce, we will.”