Supply chain of dell
Dell Direct Model & Virtual Integration The Dell Direct Model Dell's award-winning customer service, industry-leading growth and financial performance continue to differentiate the company from competitors. At the heart of that performance is Dell's unique direct-to-customer business model. "Direct" refers to the company's relationships with its customers, from home-PC users to the world's largest corporations. There are no retailers or other resellers adding unnecessary time and cost, or diminishing Dell's understanding of customer expectations. Why are computer-systems customers and investors increasingly turning to Dell and its unique direct model? Dell taking maximum benefits from various competitive strategies to counter act the competitive forces prevalent in the PC market. • Price for Performance. By eliminating resellers, retailers and other costly intermediary steps together with the industry's most efficient procurement, manufacturing and distribution process Dell offers its customers more powerful, more richly configured systems for the money than competitors. • Customization. Every Dell system is built to order. Customers get exactly, and only, what they want. • Service and Support. Dell uses knowledge gained from direct contact before and after the sale to provide award-winning, tailored customer service. • Latest Technology. Dell's efficient model means the latest relevant technology is introduced in its product lines much more quickly than through slow-moving indirect distribution channels. Inventory is turned over every 10 or fewer days, on average, keeping related costs low. • Superior Shareholder Value. During the last fiscal year, the value of Dell common stocks more than doubled. In 1996 and 1997, Dell was the top-performing stock among the Standard & Poor's 500 and NASDAQ 100, and represented the top-performing U.S. stock on the Dow Jones World Stock Index.
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Supply chain of dell
- 1. DELL SUPPLY CHAIN OF DELL
- 2. DELL COMPETETIVE STRATEGIES Price for Performance Customization Service & Support Latest Technology Superior Shareholder Value
- 3. DELL DIRECT MODEL Virtual Integration Relationship Marketing – C/S Competitive Pricing Best in class Service JIT Operations
- 4. DELL BUSINESS Negligible Inventory ( 32D - 7D JIT Delivery SRM – 204 –to 47 Order to Delivery -1 and ½ Ds Negative Cash Cycle
- 6. DELL MARKET SEGMENTATION - ADVANTAGES Unique opportunities Focused Better Economies Up & Cross Selling Intelligent Forecast
- 7. DELL VIRTUAL INTEGRATION - BENEFITS Agility and Market Responsiveness Ability to meet customers’ needs efficiently Efficient Operations data transparency and data sharing Integration of suppliers and customers in real time No constraint of time and place Elimination of Distribution Channel helps save time, money & efforts Intelligent forecasting Improved time to market JIT procurement and manufacturing Operations based on Pull model rather Push model Reduction in transaction and cycle time
- 8. DELL SUPPLY CHAIN DRIVERS PRODUCTION – JIT / FAS / B2O / PULL INVENTORY – VMI / JIT LOCATION – Distribution centers have bigger coverage TRANSPORTATION – Assembling centers close to customers INFORMATION – Transparency in SUPPLY CHAIN Operations
- 9. DELL COMPETENCE High Performance Product Line Relationship Marketing Aggressive Pricing Flexible and Efficient Manufacturing Operations Excellent Service UNDER PROMISE – OVER DELIVER
- 10. THANK YOU CA VINOD KR SHARMA