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Dell SCM

Dell's supply chain involves all parties involved in fulfilling customer requests. Dell started as a direct seller using mail order and then online sales, integrating order status and support early. Dell uses three key supply chain strategies: direct sales to avoid bullwhip effect; build-to-order for just-in-time inventory; and supplier integration to develop strong relationships. Dell's success comes from its integrated supply chain which enables rapid design, production, and assembly as well as direct shipment, while dramatically reducing inventories through information sharing.

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Deepak Nandan
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104 views2 pages

Dell SCM

Dell's supply chain involves all parties involved in fulfilling customer requests. Dell started as a direct seller using mail order and then online sales, integrating order status and support early. Dell uses three key supply chain strategies: direct sales to avoid bullwhip effect; build-to-order for just-in-time inventory; and supplier integration to develop strong relationships. Dell's success comes from its integrated supply chain which enables rapid design, production, and assembly as well as direct shipment, while dramatically reducing inventories through information sharing.

Uploaded by

Deepak Nandan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introduction

The supply chain involves all the parties involved, directly or indirectly, in
fulfilling a customer request. Supply chain not only involves the manufacturers,
service providers, executers and suppliers but also include all the vendors,
subcontractors, transporters, logistic managers, warehouses, retailers, customers
etc. The main purpose of any supply chain’s existence is to satisfy the customer
needs. Supply chain management is primarily concerned with the efficient
integration of suppliers, factories, warehouses and stores so that merchandise is
produced and distributed in the right quantities, to the right locations and at the
right time, and so as to minimize total system cost subject to satisfying service
requirements.

This assignment explains the supply chain of Dell Computers in which the
discussion will be carried out including Dell’s strategic positioning, strategic
partnership, drivers of supply chain, strategic fit, time-based opportunities, risks
and security concerns etc. Last but not least the suggestions and opinions of the
distribution network of Dell is discussed. Dell was founded in 1984 by Michael
Dell on a simple concept: by selling computer systems directly to customers. Its
corporate headquarters are located in Round Rock, Texas, and it conduct
operations worldwide through subsidiaries. The company’s core business strategy
is built around its direct customer model and highly efficient manufacturing and
logistics. Nowadays they are expanding that core strategy by adding new
distribution channels to reach even more commercial customers and individual
consumers around the world.
1. Strategic Positioning of Dell Computers

Dell started out as a direct seller, first using a mail-order system, and then taking
advantage of the Internet to develop an online sales platform. Well before use of
the Internet went mainstream, Dell had begun integrating online order status
updates and technical support into their customer-facing operations.

Analysis shows that Dell adopts three key supply chain strategies which are Dell
Direct Sales that helps it to get in contact with customers directly and helps to shun
bullwhip effect, Build-to-order that helps it to follow Just-In-Time inventory and
get advantage of the system and Supplier Integration that helps the organization to
develop warm relationship with its suppliers, so combination of these strategies
makes the corporation unique and successful. In addition to these its distinctive
manufacturing plants at different favored locations and resourceful transformation
process enabled Dell to acquire competitive advantage over its competitors.

Better integration of planning and execution has become one of the dominant
themes in supply chain. DELL has given a special place for the supply chain
integration as described previously. The heart of Dell's success is its integrated
supply chain, which has enabled rapid product design, fabrication, and assembly,
as well as direct shipment to customers. Inventories have been dramatically
reduced through extensive sharing of information, a prudent choice given the risk
of technological obsolescence and reductions in the cost of materials that can
exceed 50 percent. Even with reduced inventories, Dell's strategic use of
information has made possible a dramatic reduction in the elapsed time from order
to delivery, giving Dell a significant competitive advantage.

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