S C M SUPPLY CHAIN MANAGMENT June 6, 2010
REVEALING DELL SCM June 6, 2010
DELL SCM June 6, 2010
<ul><li>Globally  2 nd  in computer hardware design, manufacturing and distribution with a market share of around  16%.(HP...
June 6, 2010 Michael Dell-Founder Nov4,1984
June 6, 2010 Round rock, Texas
June 6, 2010 In 2008,  Fortune magazine  ranked Dell as the 25th-largest company in the Fortune 500 list
Dell’s Direct Model June 6, 2010
CUSTOMISED SOLUTION June 6, 2010
BUILT TO ORDER June 6, 2010
LOW COST June 6, 2010 LOW COST
CUSTOMER DELL DELL June 6, 2010
June 6, 2010
Why SCM is so Important in PC business? June 6, 2010
C O S T Material costs account for 74%($21 billion) a year  for dell. Improving SCM by 0.1% has bigger impact than improvi...
Dell’s Competitive  Advantages  90% supplies ordered online using  integrated websites of supplier and Dell (B2B). June 6,...
95% of suppliers situated very close to assembly plant  hence coordination is easier. 15 suppliers provide almost 85% of a...
<ul><li>Dell chose i2 Technologies for its SCM system.  </li></ul><ul><li>i2 serves almost 70% of the SCM market. </li></u...
Dell ERP Debacle <ul><li>140 member team was set up for ERP ( SAP) implementation. </li></ul><ul><li>Cancelled when costs ...
Reasons for no company wide ERP  <ul><li>SAP is like  cement, flexible  when poured but rigid once it hardens. </li></ul><...
RFID @ DELL June 6, 2010
<ul><li>RFID stands for  Radio Frequency Identification Devices. </li></ul><ul><li>RFID is a 3 part technology consisting ...
June 6, 2010
<ul><li>Tracking code and Computer assembly instructions are added to the tray. </li></ul><ul><li>This determines the spec...
<ul><li>Once assembled and tested, production information is inserted into the tags and sent to a shipping station. </li><...
<ul><li>Production stops have reduced dramatically. </li></ul><ul><li>Labor can be allocated by minimizing repetitive acti...
<ul><li>Dell uses Dell/EMC Fibre Channel SAN (Storage Area Network) </li></ul><ul><li>This helps: </li></ul><ul><li>Store ...
<ul><li>A single database is run on a cluster of Dell servers running on Intel processors. </li></ul><ul><li>This ensures ...
Dell- Customized for the Customer June 6, 2010
Dell Premier  <ul><li>Corporate customers account for almost 85% of revenue. </li></ul><ul><li>Large corporate customers a...
<ul><li>Orders put on Premier are automatically routed to higher managers for approval which eliminated paperwork and dela...
<ul><li>The Dell Premier sites includes more than 500,000 pages of information and facilitates greater knowledge transfer....
June 6, 2010 Oracle Real Application Clusters (RAC) 10 g. UNIX® OS.-OUT
June 6, 2010 with four Intel® Xeon® processors
June 6, 2010 The configuration management component manages over 1 million Dell part numbers per year across approximately...
June 6, 2010 The procurement component manages nearly 1.8 million purchase order lines per year from more than 5,000 suppl...
June 6, 2010 The inventory component manages more than 3 million inventory movements daily from stock rooms to factory flo...
June 6, 2010 Increased Performance The most significant time savings occurred in the data extraction for all material move...
June 6, 2010
<ul><li>Dell maintains special DB of its top 50 global customer. </li></ul><ul><li>Maintains a  Global Data Repository for...
Real Time CRM <ul><li>When a customer calls in for placing order then customer service links directly to Dell’s Real Time ...
June 6, 2010 THANK  YOU
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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
  • Supply chain management of DELL,by Aviroop Banik,Rizvi Institutes of Management studies,Bandra(W),Mumbai.

    1. 1. S C M SUPPLY CHAIN MANAGMENT June 6, 2010
    2. 2. REVEALING DELL SCM June 6, 2010
    3. 3. DELL SCM June 6, 2010
    4. 4. <ul><li>Globally 2 nd in computer hardware design, manufacturing and distribution with a market share of around 16%.(HP is 1 st with 19%) </li></ul><ul><li>Founded by Michael Dell in 1984. </li></ul><ul><li>1987 first computer systems company to offer next-day, on-site product service . </li></ul><ul><li>Greater than $50 Million sales per day through the internet with yearly revenue of $55.908 Billion with employee base of 78,000. </li></ul>June 6, 2010
    5. 5. June 6, 2010 Michael Dell-Founder Nov4,1984
    6. 6. June 6, 2010 Round rock, Texas
    7. 7. June 6, 2010 In 2008, Fortune magazine ranked Dell as the 25th-largest company in the Fortune 500 list
    8. 8. Dell’s Direct Model June 6, 2010
    9. 9. CUSTOMISED SOLUTION June 6, 2010
    10. 10. BUILT TO ORDER June 6, 2010
    11. 11. LOW COST June 6, 2010 LOW COST
    12. 12. CUSTOMER DELL DELL June 6, 2010
    13. 13. June 6, 2010
    14. 14. Why SCM is so Important in PC business? June 6, 2010
    15. 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. 16. Dell’s Competitive Advantages 90% supplies ordered online using integrated websites of supplier and Dell (B2B). June 6, 2010
    17. 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. 18. <ul><li>Dell chose i2 Technologies for its SCM system. </li></ul><ul><li>i2 serves almost 70% of the SCM market. </li></ul><ul><li>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 </li></ul>June 6, 2010
    19. 19. Dell ERP Debacle <ul><li>140 member team was set up for ERP ( SAP) implementation. </li></ul><ul><li>Cancelled when costs shot up and flexibility of system went down. </li></ul>June 6, 2010
    20. 20. Reasons for no company wide ERP <ul><li>SAP is like cement, flexible when poured but rigid once it hardens. </li></ul><ul><li>Even a small error might be very costly . </li></ul><ul><li>HP lost $160 million because of SAP implementation errors . </li></ul><ul><li>Nike lost $100 million because of SAP demand planning error. </li></ul>June 6, 2010
    21. 21. RFID @ DELL June 6, 2010
    22. 22. <ul><li>RFID stands for Radio Frequency Identification Devices. </li></ul><ul><li>RFID is a 3 part technology consisting of: </li></ul><ul><li>A reader </li></ul><ul><li>A receiver with decoder </li></ul><ul><li>A Transponder </li></ul>June 6, 2010
    23. 23. June 6, 2010
    24. 24. <ul><li>Tracking code and Computer assembly instructions are added to the tray. </li></ul><ul><li>This determines the specific line to which the tray should go to. </li></ul><ul><li>At every stage of the assembly, the tags are read by the antenna for specific instructions. </li></ul>RFID at Dell - Manufacturing June 6, 2010
    25. 25. <ul><li>Once assembled and tested, production information is inserted into the tags and sent to a shipping station. </li></ul><ul><li>At the shipping station, the RFID tag transfers data to the control PC. </li></ul><ul><li>This control PC uses this information to print the appropriate label. </li></ul>RFID at Dell - Shipping June 6, 2010
    26. 26. <ul><li>Production stops have reduced dramatically. </li></ul><ul><li>Labor can be allocated by minimizing repetitive activities. </li></ul><ul><li>Returns due to wrong shipping of products have been minimized. </li></ul>Benefits of RFID June 6, 2010
    27. 27. <ul><li>Dell uses Dell/EMC Fibre Channel SAN (Storage Area Network) </li></ul><ul><li>This helps: </li></ul><ul><li>Store and retrieve critical information. </li></ul><ul><li>Helps it scale easily and thus enabling it to accommodate any increase in storage system. </li></ul>June 6, 2010
    28. 28. <ul><li>A single database is run on a cluster of Dell servers running on Intel processors. </li></ul><ul><li>This ensures that the minute a server is down, another server automatically comes up and takes over. </li></ul>June 6, 2010
    29. 29. Dell- Customized for the Customer June 6, 2010
    30. 30. Dell Premier <ul><li>Corporate customers account for almost 85% of revenue. </li></ul><ul><li>Large corporate customers access Dell website called dell premier which is a customized version of dell.com. </li></ul>June 6, 2010
    31. 31. <ul><li>Orders put on Premier are automatically routed to higher managers for approval which eliminated paperwork and delays. </li></ul><ul><li>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. </li></ul><ul><li>Premier sites can integrate with - Microsoft (Biztalk) </li></ul><ul><li>Oracle, Peoplesoft , SAP ,etc . </li></ul>June 6, 2010
    32. 32. <ul><li>The Dell Premier sites includes more than 500,000 pages of information and facilitates greater knowledge transfer. </li></ul><ul><li>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. </li></ul><ul><li>The same configurations info helps Dell to make repeat business with customers by offering products specifically to them. </li></ul>June 6, 2010
    33. 33. June 6, 2010 Oracle Real Application Clusters (RAC) 10 g. UNIX® OS.-OUT
    34. 34. June 6, 2010 with four Intel® Xeon® processors
    35. 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. 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. 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. 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. 39. June 6, 2010
    40. 40. <ul><li>Dell maintains special DB of its top 50 global customer. </li></ul><ul><li>Maintains a Global Data Repository for all of its customer </li></ul>June 6, 2010
    41. 41. Real Time CRM <ul><li>When a customer calls in for placing order then customer service links directly to Dell’s Real Time inventory . </li></ul><ul><li>Depending on latest inventory data Dell can : </li></ul><ul><ul><li>Push Available inventory at lower cost. </li></ul></ul><ul><ul><li>Promote latest/new products at higher cost. </li></ul></ul><ul><ul><li>Provide add-on products with discounts . </li></ul></ul>June 6, 2010
    42. 42. June 6, 2010 THANK YOU

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