Dell Supply Chain Management

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  • We are going to discuss the Supply Chain Management system of the computer manufacturer, DELL Inc.
  • Dell Supply Chain Management

    1. 2. <ul><li>Started in Michael Dell’s dorm room at the University of Texas in 1984 </li></ul><ul><li>Grossed $75 million in sales in 1985 </li></ul><ul><li>Made the Fortune 500 in 1992 </li></ul><ul><li>Ranks 2 nd in computer sales </li></ul>
    2. 3. <ul><li>College dropout </li></ul><ul><li>Changed how computers were sold </li></ul><ul><li>Started his business with $1000 in capital </li></ul><ul><li>Now worth $17.3 billion </li></ul>
    3. 4. <ul><li>Dell’s success is a combination of: </li></ul><ul><li>Direct Sales </li></ul><ul><li>Build-to-order </li></ul><ul><li>Supplier Integration </li></ul><ul><li>Together these allow for maximum effectiveness with minimum cost </li></ul>
    4. 5. <ul><li>A direct sales system allows Dell to: </li></ul><ul><li>Cut costs </li></ul><ul><li>Build relationships with its customers </li></ul><ul><li>Deliver exactly what the customer wants </li></ul>
    5. 6. <ul><li>A build to order system allows Dell to: </li></ul><ul><li>Increase inventory velocity </li></ul><ul><li>Minimize inventory costs </li></ul><ul><li>Build exactly the computer that its customers want </li></ul><ul><li>Minimize the need for forecasting </li></ul>
    6. 7. <ul><li>Supplier integration allows Dell to maximize the benefit of its other core competencies </li></ul><ul><li>Here is how they do it: </li></ul><ul><li>Location of supplier warehouses </li></ul><ul><li>Extranet </li></ul><ul><li>Meetings with suppliers </li></ul>
    7. 8. <ul><li>The secret to Dell’s success is the synergy between all of its competencies </li></ul><ul><li>The direct sales system both enables and relies on the build-to-order system </li></ul><ul><li>The build to order system both enables and relies on the supplier integration system </li></ul><ul><li>And Dell’s focus on collaboration at every level enables it all </li></ul>
    8. 9. <ul><li>Manataki, Areti: A Knowledge-Based Analysis and Modelling of Dell’s Supply Chain Strategies </li></ul><ul><li>Dave Jaffe and Todd Muirhead: Implementation Study: Dell IT Scales Supply Chain Management with Oracle 10g RAC </li></ul><ul><li>Dell Case Study - http://www.oppapers.com/print/Dell-Case-Study/84223 </li></ul><ul><li>Dell ERP - http://www.oppapers.com/print/Dell-Erp/74191 11/5/2008 </li></ul><ul><li>You Zeng: Learning from Dell - the faithful implementer of 'Just in Time' </li></ul><ul><li>Dell on Wikipedia - http://en.wikipedia.org/wiki/dell </li></ul>

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