3. Milestone of Dell INC.
• The establishment of the Dell company.
1984
• Dell suffered its first major setback then built a senior management
1992 team.
• Dell launched Dell.com, with support information with price guides
1994
• First acquisition (To complement hardware sales) and achieve No1
2000 PC firm in U.S at same year.
• The number-one firm in global market share.
2001
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6. Game:
piece 3
Within 1 hour
•Customer •build •Final testing& •Order
order pull •kitting •Software labeling •Boxing accumulation
testing&
install
5
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12. Superior Relationship
with Suppliers
JIT Inventory
Extranet
System
1. Dell encourage
suppliers use the website 1. Efficiently meet
to track the orders and inventory
inventories. requirements
2. Real time information 2. Maintain low cost
sharing with suppliers 3. Transfer uncertainty to
3. Facilitate JIT inventory suppliers
system
11
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14. Milestone of Dell INC.
• Dell's’ revenue fell, Dell Direct store appeared (shopping malls) in
2002 US.
• Changed company name from Dell Computer Corporation to Dell
2003 Inc.
• Kevin Rollins became CEO.
2004
• Losing share to HP, Apple and other vendors.
2006
• Michael Dell returned as CEO.
2007
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15. Underperformance
Changes Evaluations
Exiting Low-end Increasing
Market customers’
uncertainty
Fierce
Competition
14
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22. 1.Redesign supply chain to
1. Lower SC uncertainty
optimize global manufacture
2. Cut management cost
2.Cut down development
time
1. Economy of Scale
2. Higher level of efficiency
3.Reduce compensation and
benefit costs
4.Improve productivity and
General cost saving spend
tighten discretionary
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23. Loss of power
Loss of competitive knowledge
Long negotiation and
relationship building process
Objective conflicts
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25. Wide range of potential
problems
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26. Low price
strategy &
Complete
products
lines
User
Innovative
friendly
designs &
designs &
Excellent DELL Mature
marketing
product
strategy
lines
Advanced
technologies
& Increasing
reputation
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27. 1. Reach customers easily &
match their consumption
behavior
2. Increasing sales
1. Wider range of products
2. Meet different customers’
need
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28. Decrease margin per unit sold
Bullwhip effect
Loss of core competency
New relationship
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29. Increasing cost
Existing competition
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35. Conclusion
WHAT LESSONS we CAN learn
Matching its own products
with the markets and
Strategy costumers' need
FIT Competitive strategy and
supply chain strategy work
together
Supply chain strategy
CHANGE should be reactive to
environmental change
Advancement of Relationship
relationship and
networking Maintenance
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36. What Dell’s Doing Now
2009 Present
By 2011, the company has its best solutions portfolio ever and celebrates the
largest single-year revenue increase in company history.
Acquire Perot Systems and launch a new business called Dell™ Services that
gives customers end-to-end IT services to help lower their total cost of IT
ownership.
Introduce Adamo and Latitude™ Z laptops — both the world’s thinnest laptops
enters the tablet arena with the Streak, a 5-inch device designed to provide
the best on-the-go entertainment, social connection and navigation
experience.
Acquisition of Boomi®, Exanet, InSite One®, KACE™, Ocarina™
Networks, Scalent™ and Compellent®
Further proof of our commitment to providing end-to-end IT solutions for our
customers, we commit $1 billion to develop Dell data and solution centers
around the world and open R&D centers in Israel and the U.S.
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These factors together allow the company to achieve maximum effectiveness with minimum cost.
These factors together allow the company to achieve maximum effectiveness with minimum cost.
These factors together allow the company to achieve maximum effectiveness with minimum cost.
These factors together allow the company to achieve maximum effectiveness with minimum cost.
By cutting all the middle persons in between the factory and consumer, Dell is able to cut cost and delivery time to promptly meet the needs of consumer.The theory of “configure to order” approach to manufacturing-meet customer specification, makes Dell unique.
Build to order is enabled by the direct sales system. It allows Dell to give the customer exactly what he wants while minimizing inventory holding timesSince computers don’t need to be built in advance, Dell does not need to forecast demand as much as it otherwise would
Supplier integration is the last piece of Dell’s just in time inventory systemIt enables Dell to order parts and have them delivered on extremely tight schedulesDell’s focus on collaboration with its suppliers enables an effective supplier integration
All of the elements of Dell’s system work together to enabled a just in time inventory system.If one piece missing, the whole project would failThat is the key to a successful JIT implementation-all of the aspects of your business must synergize with a JITThe secret to Dell’s success is the synergy between all of its competenciesThe direct sales system both enables and relies on the build-to-order systemThe build to order system both enables and relies on the supplier integration systemAnd Dell’s focus on collaboration at every level enables it all
