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DELL SUPPLY CHAIN 1

DELL SUPPLY CHAIN

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DELL SUPPLY CHAIN 2

About Dell

Dell Inc. is an international company majoring in information technology services. The founder of

the company is Michael Dell and it is located in Texas. The company offers numerous services

which include selling of the Desktop computers, networking products, computer accessories,

printers, mobility products, software and security and many more. The company also offers

consulting and product related services. The company is currently the third largest Computers

accessories seller after Lenovo and Hp (Dell, 2013). The success of this company is primarily

modelled by the idea of selling its product directly to its customers without passing through the

hands of the intermediaries. As such, this makes their products to be much cheaper compared to

those of their competitors. As of 2017, the company’s revenue was $13.1 billion.

Supply analysis

Challenges facing Dell supply chain

As the company is building to order customization and an efficient cost cutting supply chain, they

currently do not provide the expected strategic advantage it once did. In order to solute this Dell

copied a strategic moves made by their competitors. For instance, the company is currently putting

models in retail outlets, courting the consumer market. This may further eat away the companies

the original cost saving advantage. Dell can also offers some of its products in new patterns and

colors which will erode the traditional supply chain advantage of the company (Milovanovic,

Milovanovic & Radisavljevic).

Opportunities for Dell Supply chain

The contemporary customer needs and business dynamics require innovation. As such, Dell Inc.

has shifted its focus to innovation itself. Essentially in the field of supply chain. The companies

supply chain and logistic is estimated to cost an amount of $2 billion yearly with over 13 million

DELL SUPPLY CHAIN 3

customers. As the company is focusing on enlarging its global outreach. By using continuous

optimization framework, Dell is developing its full supply chain potential. The framework is

basically based on the following four steps:

 Stabilizing the situation to ensure that it works always.

 Designing the supply chain in such a way that it matches the requirements of the customers.

 Enabling that capability.

 Evaluating and assessing what is going on in the business.

In order to get the best value of the steps, the company’s supply chain team can start checking on

the current cost in all its relevant area: In the regional level, by country, by product, by service

level, the mode of transportation and the lanes. Based on the information gathered from the stated

elements the company can get the full potential cost of existing new market by evaluating the

future opportunities.

Operation Analysis

Demand Challenges

The demand for the PC markets have really deteriorated over the years. The demand for PC

products have shifted from higher-margin premium products to lower cost and lower margin

products, essentially in the emerging markets. For instance, the idea of having the refurbished

computers in the low economy countries have boomed as individuals don’t see the need of buying

a brand new PC, and there is an opportunity to buy the same PC at a lower price. This reduces the

demand of the higher margin PC products. Additionally there is an increasing competition from

efficient and low cost manufacturers who produce innovative and higher margin PC products (Jay,

Simeon, Dipayan, Reynaldo & Sandeep, 2013).

DELL SUPPLY CHAIN 4

Information Analysis-300

Bullwhip effect is generally trend whereby a larger and larger swing in the inventory with response

to the change in demand. The consequences of bullwhip does not happen if all the orders reach the

targeted demand of each retro. With the discoveries of the supply chain specialists they find it

reliable with the prediction that the Bullwhip is a problematic in forecasting driven supply chains,

and vigilant controlling of the effect that comes with it is a for I can’t objective. Thus, it is essential

to as earliest as possible be in a position of finding the existing demand. Dell Company has built

a web page for the merchants this was an accomplishment of dells value chain Dell. The pages

built were of great benefit, as they enabled the suppliers to have a view of the stock that were

currently present in Dells catalogue, at the same time they viewed the orders that mechanism

produced. In return the suppliers were advantaged as they built for demand in physical time. From

the discussion it can be concluded that an organization will not be in need of focusing on the

buildup of unnecessary mechanism and product if it ensures it figures out in physical time basing

on real demand. As for the dell company the web page that was tailored for the suppliers enabled

them to consequently decrease the bullwhips.

Recently, dell has deployed i2

TradeMatrix a supply chain tool, this was for the purpose of

providing global views of requirements for materials, it also forecasted on product demand.

Additionally, i2

TradeMatrix greatly advanced management of inventory and factory

scheduling. Dell has been able to view globally long term and short term materials requirements

in all the dell factory, this was made possible by the new tools that were introduced to the company.

Integration Analysis-300

Sustainability Analyis-300

Discussion of the company’s procurement and supply chain Analysis-550

Discussion of improvement programs-250

DELL SUPPLY CHAIN 5

How improvement programmes can assist the company to achieve its vision, mission and

strategic goals.-250

Conclusion

DELL SUPPLY CHAIN 6

References

Company Vitae: Dell 2013, Haymarket Media Group, London.

Dell: Company Profile and Prospects 2015 , Normans Media Ltd, Coventry.

http://www.industryweek.com/supply-chain/supply-chain-and-logistics-dell-taps-innovation-

reach-emerging-markets

JAY, Z., SIMEON, G., DIPAYAN, G., REYNALDO, G. & SANDEEP, N. 2013, Supply chain

management.

Milovanovic, G., Milovanovic, S. & Radisavljevic, G. 2017, "GLOBALIZATION - THE KEY

CHALLENGE OF MODERN SUPPLY CHAINS", Ekonomika, vol. 63, no. 1, pp. 31.

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