Dell

1. Dell
- Alika Koshy
Aman Sawhney
Ribhu Vashishtha

2. Dell
 Dell has been the industry leader in direct
sale of PC to consumers.
 Since its start
 simplify its business for its customers.
 huge range of products and services, which
can all be accessed by the consumers from
home or from the office very easily.

3. Supply chain management
Revolutionized the way people buy computers.
 Markets its direct sales model.
 No intermediaries
 No warehousing
 No physical store presence
Eliminated the need for central warehousing
 Saves money and time.
 Sales
 Production
 Warehousing

4. The supply chain of Dell includes
 The customer
 Dell’s website
 Dell assembly plant
 Dell’s suppliers
 Their suppliers

5. Types of supply chain
 Pull process (Reactive process)
 Push process(Speculative process)

6. Process cycle of dell
 Customer order and manufacturing cycle
–Pull Process
 Procurement cycle –Push process

7. Drivers of supply chain
 Facilities : Low facility cost
 Inventory:Low inventory costs
 Transportation:High transportation costs
 Information:high information cost

8. Distribution in Supply Chain
 Distribution refers to steps taken to move
and store a product
 From supplier stage to customer stage in
supply chain

9. Distribution network
 Manufacturing storage with direct shipping

10. Distribution network
 Manufacturing storage with direct shipping
and intransit merge

11. Business Model
 Combination of three things:
A. Direct Sales
B. Build to order
C. Supplier Integration

12. Direct Sales
 A direct sales system allows DELL to:
 Cut Costs
 Develop exactly what customers want
 Build relationships with customers

13. Build to Order
 A build to order system allows DELL to:
 Increase inventory velocity
 Minimize inventory cost
 Minimize the need for forecasting
 Build exactly that its customer wants

14. Supplier Integration
 Supplier integration allows DELL to
maximize the benefit of its other core
competencies
 How?
 Location of Supplier warehouses
 Extranet
 Meeting with suppliers

15. Supply Chain Techniques

16. Postponement
 Build-to-Order Strategy used
 Product assembly begins after order received
from customer and credit cleared
 Allows for customization. Results in shorter lead
time.
 Dell has 3-4 days of finished inventory as
compared to 30-45 days for most of its
competitors

17. Modularity
 Organization of complex products by
decomposing it into smaller portions that can be
managed independently.
 Slots available within CPU casing to fit different
types of components from various suppliers
 Large number of product variations possible
 Also assists the reverse supply chain by ease in
breaking down components

18. Vendor Managed Inventory
 Supplier to focus on part innovation and
Dell to concentrate on customers and
supply chain
 Inventory replenished 3 times a week
 Forecast information shared by Dell with
vendors to ensure timely supply
 Inventory held in small warehouses near
Dell plants called “Revolvers”

19. Demand Management
 Direct Selling enables real-time
collaboration and synchronization between
sales and manufacturing
 Eg: When inventory for a component runs low,
Dell runs a promotion on another substitute part
of equal or greater quality. This helps shift
customer demand from standard ordering
patterns

20. Thank You !!
Alika Koshy
Ribhu Vashishtha
Aman Sawhney