1. “IN THE NAME OF ALLAH,
THE MOST BENEFICENT, THE
MOST MERCIFUL”
2. PRESENTED BY: RIFAT HUMAYUN
SUBJECT : SUPPLY CHAIN
MANAGEMENT
MS MANAGEMENT SCIENCES
RIPHAH INTERNATIONAL UNIVERSITY
4. “THE IDEA OF BEING ALL THINGS TO ALL PEOPLE IS A
THING OF THE PAST”.
MICHEAL DELL.
5. “TO BE THE MOST SUCCESSFUL COMPUTER
COMPANY IN THE WORLD AT DELIVERING
THE BEST CUSTOMER EXPERIENCE”
Mission
6. HISTORY
• Founded by 19-year-old Michael Dell in a dorm
room, grew by more than 50% a year over
1995-1998.
• Dell produces custom build PCs in a matter of
hours and producing no PC component it could
sustain a large portion of PC market comparing
to IBM, HP, Compaq, Hitachi, Sony.
7. • Dell Computer Corporation designs, develops, manufactures, markets, services and
supports a wide range of computer systems, including desktop computer systems,
notebook computers and enterprise systems (includes servers, workstations and
storage products), and also markets software, peripherals and service and support
programs.
• The Company is managed on a geographic basis.
• The three geographic segments are the Americas, Europe, and Asia-Pacific and
Japan.
8. DELL’S SUCCESS
Dell’s success is a combination of:
Direct Sales
Inventory management
Suppliers integration
Together these allow for maximum differences with minimum cost.
9. CORE ELEMENTS OF STRATEGY
• Mass Customization
• Partnership with Suppliers
• JIT(JUST IN TIME)
• Market Segmentation
• Customer service
• Extensive data and information sharing with both supply partners and customers.
10. DELL IN DIRECT MODEL
INDIRECT CHANNELS
Reseller Customized
the PC to customer
requirements,
installed components
and provided
additional service and
support.
11. DELL DIRECT MODEL
The Direct Model
•Direct Sales From the PC
manufacturer to the corporate
customer or consumer.
•Bypassing the dealer channel,
selling directly to consumer
•Focus on Speed of Execution
and Minimum Inventory
12. DELL DIRECT MODEL
• The Direct Model Characteristics
Eliminate costs and risks of carrying large finished good inventories
High velocity
Low-cost distribution
Direct customer relationship
Build-to-order
Just-in-time manufacturing
Products and Services aimed at specific market segments
13. PRODUCT LINE
DesktopsLaptops & notebooks
Mobile phones & Devices
Printers & InkElectronics & Software
HDTVs & Home theater
14. DELL DIRECT MODEL
• Customers And Segmentation
Transactional
Individuals or businesses who make transaction-by-transaction
buying decision - based on the Economics of the purchase
Focus on performance, specification, featured, reviews, awards
Relationship
Based on “total cost of ownership” TCO and price is a secondary
concern. Like business, government or education accounts in
medium-to-large organizations. Focus on service, reliability, vendor reputation and
standardization
16. KEY PRINCIPLES OF DELL
Managers spoke of a few key principles that were fundamental to their business. These
included:
•· Exchange inventory for information
•· Velocity, value and volume
•· Constant change
•· Criticality of coordination
•Knowing the customer is the foundation for creating value
•· Going from the physical to the virtual world creates barriers to entry
18. KEY FACTORS TO SUCCESS
• Product feature
• Market share
• Established brand name
• Financial position
• Price Competitiveness
• Low distribution costs
• Shorter delivery time
• Global distribution network
• Support and services
19. • Companies such as Dell that are industry leaders in Internet
commerce will be able to expand their customer base and increase
their business with existing companies at a low marginal cost. They
also can reduce the cost of coordinating their supply chain through
electronic linkages. This will enable them to offer incentives to
customers and suppliers
to do business electronically and continue to drive their own costs
down.
20. SUPPLIERS OF DELL
• There are more than 65 supplier for Dell
• Some of the suppliers
• Logitech
• NVIDIA
• Compeq
• Coolit System
• Delta Product
• Pegatron
• Alpha and Omega
22. SUPPLIERS OF DELL
• Microsoft------ For windows
• Intel----For Micro processor
• NVIDIA------For Graphic chips
• Sony-------For Monitors
23. SUPPLIERS SELECTION AND EVALUATION
• Quality
• Price
• Delivery
• Response to feed back
EVALUATION:
To measure performance uses suppliers score
Cost
Delivery
Availability of technology
Ways in which they did business with dell over the internet.
24. DELL LOGISTICS NETWORK
Dell’s new and improved design for a channel distribution model:
Order processing
Pre-production
Accessories ready
Configuration
Test
Boxing
Distribution preparations
Shipping(transportation)
25. TRANSPORTATION SYSTEM
DESIGN
Optimize inbound and outbound transportation networks
Collaborate with the best logistics and transportation providers
Mode of transportation
By Ship
By Rail
By Air