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The Dell Supply Chain Transformation
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The Dell Supply Chain Transformation

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The Dell Supply Chain Transformation The Dell Supply Chain Transformation Presentation Transcript

  • Powerpoint Templates THE DELL’s SUPPLY CHAIN TRANSFORMATION by Roslinda Perangin-angin
  • OUTLINE
    • Webinars broadcasted by
    • Dell Background
    • The Case for Change
    • Supply Chain Segmentation
    • Dell’s Segmented Supply Chain
    • Keys to Successful Transformation
    • The Supply Chain Television Channel (www.sctvchannel.com)
  • Dell Background:
    • Dell by the Numbers
    • Fortune 40 Company
      • $61.5 billion FY11 Revenue*: $4.1billion FY11 Operating Income**
    • Online Leader
      • 65 customer interactions per second; 5.4 million discussion per day; 2 billion interactions annually
    • Corporate Responsibility
      • Ranked #1 on Newsweek’s 2010 list of the Greenest Companies in America
      • Received the 2010 Greneest Supply Chain Award in China
    • IT Services Leader
      • # 1 healthcare services provider; support over 50% of U.S. hospitas and 60% of classrooms; top provider to U.S. colleges and universities
    • Partner to Business
      • 98% of Fortune 500 do business with Dell. #1 PC provider to large enterprises and public sector organizations. #1 computer provider to SMB’s
  • Dell Background (cont’d): Dell’s Products
  • Dell Background (cont’d):
    • Enterprise Solutions & Service Transformation
    • Extending core capabilities and growing solutions mix
    • Continue to expand enterprise services, solutions and storage
    • capabilities
    • Making sustained organic and inorganic investments while building
    • an IP portpolio
    • Creating optimal solutions for customers that are Open, Capable, and
    • Affordable
  • The Case for Change:
    • Dell’s Supply Chain
    • Procurement
    • $38 billion annual supply chain purchase
    • $2 billion annual diverse supplier spend
    • Inventory Management
    • 9 days sales inventory
    • -33 days cash conversion cycle
    • Global Reach
    • 180 countries served
    • Manufacturing
    • 5 Dell owned factories globally + extensive partner network
    • Provide factory customization to thousands of customers everyday
    • Logistics
    • > 1 systems shipped per second
    • 47+ supply chain nodes
  • The Case for Change (cont’d): Dell’s Supply Chain Transformation
  • Supply Chain Segmentation
    • Customer Value Proposition
      • Product Innovation
      • Product Selection and Availability
      • Price and Brand
      • Value Added Services
      • Customer Experience
    • Product characteristics
    • Channels to market
  • Supply Chain Segmentation (cont’d) Customer Value and Operations Strategy
  • Supply Chain Segmentation (cont’d)
    • The Challenges
    • Mismatch between the strategies suggested by different
    • customer value propositions, product characteristics &
    • channels
    • - Push vs Pull
    • Different products, channels and customer types require
    • different supply chain strategies
    • - Stores vs Online
    • - Individual Consumers vs Corporate
    • Need to take advantage of synergies accross different
    • segments
    • - Reduce Complexity
    • - Benefit from Economies of Scale
  • Supply Chain Segmentation (cont’d) Channel Type: Retail vs Online
  • Supply Chain Segmentation (cont’d) Channel Type: Corporate Client vs Individual Consumers
  • Supply Chain Segmentation (cont’d) Case Study: The PC Industry – Retail vs Online
  • Supply Chain Segmentation (cont’d) Characteristics of Push and Pull Supply Chain
  • Dell’s Segmented Supply Chain Evolve the Supply Chain
  • Dell’s Segmented Supply Chain ENGAGE THE ENTIRE ORGANIZATION Transformation is End-to-End
  • Dell’s Segmented Supply Chain Americas Fulfillment Nodes – Direct Ship
  • Dell’s Segmented Supply Chain Americas Fulfillment Nodes – Retail/Channel
  • Dell’s Segmented Supply Chain Americas Fulfillment Nodes – Build to Stock
  • Dell’s Segmented Supply Chain Americas Fulfillment Nodes – Current State
  • Keys to Successful Transformation
  • Keys to Successful Transformation
    • Focus on Goals
    • Provide customers choice they value
    • Transform end-to-end
    • Chart a clear course and benefit
    • Simplify products
    • Eliminate complexity
    • Get better, faster, simpler
    • Relentless focus on continuous
    • Engage the entire organization