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Supply chain management of DELL,by Aviroop Banik,Rizvi Institutes of Management studies,Bandra(W),Mumbai.
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Supply chain management of DELL,by Aviroop Banik,Rizvi Institutes of Management studies,Bandra(W),Mumbai.

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  • June 6, 2010
  • June 6, 2010

Transcript

  • 1. S C M SUPPLY CHAIN MANAGMENT June 6, 2010
  • 2. REVEALING DELL SCM June 6, 2010
  • 3. DELL SCM June 6, 2010
  • 4.
    • Globally 2 nd in computer hardware design, manufacturing and distribution with a market share of around 16%.(HP is 1 st with 19%)
    • Founded by Michael Dell in 1984.
    • 1987 first computer systems company to offer next-day, on-site product service .
    • Greater than $50 Million sales per day through the internet with yearly revenue of $55.908 Billion with employee base of 78,000.
    June 6, 2010
  • 5. June 6, 2010 Michael Dell-Founder Nov4,1984
  • 6. June 6, 2010 Round rock, Texas
  • 7. June 6, 2010 In 2008, Fortune magazine ranked Dell as the 25th-largest company in the Fortune 500 list
  • 8. Dell’s Direct Model June 6, 2010
  • 9. CUSTOMISED SOLUTION June 6, 2010
  • 10. BUILT TO ORDER June 6, 2010
  • 11. LOW COST June 6, 2010 LOW COST
  • 12. CUSTOMER DELL DELL June 6, 2010
  • 13. June 6, 2010
  • 14. Why SCM is so Important in PC business? June 6, 2010
  • 15. C O S T Material costs account for 74%($21 billion) a year for dell. Improving SCM by 0.1% has bigger impact than improving manufacturing process by 10% . June 6, 2010
  • 16. Dell’s Competitive Advantages 90% supplies ordered online using integrated websites of supplier and Dell (B2B). June 6, 2010
  • 17. 95% of suppliers situated very close to assembly plant hence coordination is easier. 15 suppliers provide almost 85% of all supplies. Assembly plant Suppliers June 6, 2010
  • 18.
    • Dell chose i2 Technologies for its SCM system.
    • i2 serves almost 70% of the SCM market.
    • Every 20 sec the S/W aggregates orders, analyzes material requirements ,compares Dell’s on-hand inventory with its suppliers’ inventory and then creates a supplier bill of material to meet its order needs
    June 6, 2010
  • 19. Dell ERP Debacle
    • 140 member team was set up for ERP ( SAP) implementation.
    • Cancelled when costs shot up and flexibility of system went down.
    June 6, 2010
  • 20. Reasons for no company wide ERP
    • SAP is like cement, flexible when poured but rigid once it hardens.
    • Even a small error might be very costly .
    • HP lost $160 million because of SAP implementation errors .
    • Nike lost $100 million because of SAP demand planning error.
    June 6, 2010
  • 21. RFID @ DELL June 6, 2010
  • 22.
    • RFID stands for Radio Frequency Identification Devices.
    • RFID is a 3 part technology consisting of:
    • A reader
    • A receiver with decoder
    • A Transponder
    June 6, 2010
  • 23. June 6, 2010
  • 24.
    • Tracking code and Computer assembly instructions are added to the tray.
    • This determines the specific line to which the tray should go to.
    • At every stage of the assembly, the tags are read by the antenna for specific instructions.
    RFID at Dell - Manufacturing June 6, 2010
  • 25.
    • Once assembled and tested, production information is inserted into the tags and sent to a shipping station.
    • At the shipping station, the RFID tag transfers data to the control PC.
    • This control PC uses this information to print the appropriate label.
    RFID at Dell - Shipping June 6, 2010
  • 26.
    • Production stops have reduced dramatically.
    • Labor can be allocated by minimizing repetitive activities.
    • Returns due to wrong shipping of products have been minimized.
    Benefits of RFID June 6, 2010
  • 27.
    • Dell uses Dell/EMC Fibre Channel SAN (Storage Area Network)
    • This helps:
    • Store and retrieve critical information.
    • Helps it scale easily and thus enabling it to accommodate any increase in storage system.
    June 6, 2010
  • 28.
    • A single database is run on a cluster of Dell servers running on Intel processors.
    • This ensures that the minute a server is down, another server automatically comes up and takes over.
    June 6, 2010
  • 29. Dell- Customized for the Customer June 6, 2010
  • 30. Dell Premier
    • Corporate customers account for almost 85% of revenue.
    • Large corporate customers access Dell website called dell premier which is a customized version of dell.com.
    June 6, 2010
  • 31.
    • Orders put on Premier are automatically routed to higher managers for approval which eliminated paperwork and delays.
    • Access to Dell’s own on-line internal technical support tools which is actually used by Dell’s Support personnel when a customer calls for help.
    • Premier sites can integrate with - Microsoft (Biztalk)
    • Oracle, Peoplesoft , SAP ,etc .
    June 6, 2010
  • 32.
    • The Dell Premier sites includes more than 500,000 pages of information and facilitates greater knowledge transfer.
    • Gives detailed info on all the configurations(h/w and s/w) present in the customer’s pc which helps in quick decision making for customer if going for upgrades.
    • The same configurations info helps Dell to make repeat business with customers by offering products specifically to them.
    June 6, 2010
  • 33. June 6, 2010 Oracle Real Application Clusters (RAC) 10 g. UNIX® OS.-OUT
  • 34. June 6, 2010 with four Intel® Xeon® processors
  • 35. June 6, 2010 The configuration management component manages over 1 million Dell part numbers per year across approximately 200 product families, and over 2 million bills of materials (BOMs) per year. Configuration management
  • 36. June 6, 2010 The procurement component manages nearly 1.8 million purchase order lines per year from more than 5,000 suppliers worldwide Procurement:
  • 37. June 6, 2010 The inventory component manages more than 3 million inventory movements daily from stock rooms to factory floors across all Dell sites,
  • 38. June 6, 2010 Increased Performance The most significant time savings occurred in the data extraction for all material movements transactions, which dropped from almost 5 hours to just 35 minutes for an 88 percent Improvement.
  • 39. June 6, 2010
  • 40.
    • Dell maintains special DB of its top 50 global customer.
    • Maintains a Global Data Repository for all of its customer
    June 6, 2010
  • 41. Real Time CRM
    • When a customer calls in for placing order then customer service links directly to Dell’s Real Time inventory .
    • Depending on latest inventory data Dell can :
      • Push Available inventory at lower cost.
      • Promote latest/new products at higher cost.
      • Provide add-on products with discounts .
    June 6, 2010
  • 42. June 6, 2010 THANK YOU