This document discusses Dell's efforts to improve the flexibility of its desktop PC supply chain. It analyzes Dell's options for organizing its supply chain functions across different regions and global levels. Several options are evaluated based on their complexity levels and cost per unit. Option 2 and 3A emerged as top choices as they decentralized some functions regionally while maintaining low costs, helping Dell better respond to demand fluctuations and reduce risks.

1. Case study : Dell Inc. Improving the Flexibility
of the Desktop PC Supply Chain

2. DELL Case Study | Coordination in the Supply Chain Management | Group 1 | ESC Rennes 2/26

3. DELL Case Study | Coordination in the Supply Chain Management | Group 1 | ESC Rennes 3/26
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MOTHERBOARD
Nervous System of a computer
that contains the circuity of the
central processing system
CHASSIS
Enclosure of framework case
that contains and protects all
the vital internal components

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13. DELL Case Study | Coordination in the Supply Chain Management | Group 1 | ESC Rennes 13/26
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14. DELL Case Study | Coordination in the Supply Chain Management | Group 1 | ESC Rennes 14/26
91% 94% 96%
90% 85%
73%
9% 6% 4%
10% 15%
27%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
January 05 February 05 March 05 April 05 May 05 June 05
L6 L5

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17. DELL Case Study | Coordination in the Supply Chain Management | Group 1 | ESC Rennes 17/26
Option 1 Option 2 Option 2* Option 3A Option 3B Option 4 Option 5
Worlwide procurement 10 1 1 1 1 5 10
Regional procurement 8 5 5 5 5 5 10
Master scheduler 5 5 5 5 5 5 5
Production control 5 10 10 7 7 7 5
Operations 1 10 10 5 5 1 1
DAO Quality 5 10 10 5 5 1 1
Processing engineering 1 10 10 5 5 1 1
Supplier quality
engineering (regional)
10 1 1 1 1 5 7
Supplier quality
engineering (global)
1 1 1 1 1 1 10
Cost accounting 5 1 1 10 10 10 1
Inventory control 1 5 5 5 7 10 1
Logistics 5 1 1 5 5 5 10
TOTAL (complexity level) 57 60 60 55 57 56 62
COST PER BOX $10,07 $7,00 $7,90 $7,54 $7,70 $7,61 $7,00

18. DELL Case Study | Coordination in the Supply Chain Management | Group 1 | ESC Rennes 18/26
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Option 1 Option 3A
Worlwide procurement 10 1
Regional procurement 8 5
Master scheduler 5 5
Production control 5 7
Operations 1 5
DAO Quality 5 5
Processing engineering 1 5
Supplier quality
engineering (regional)
10 1
Supplier quality
engineering (global)
1 1
Cost accounting 5 10
Inventory control 1 5
Logistics 5 5
TOTAL (complexity
level)
57 55
COST PER BOX $10,07 $7,54

20. DELL Case Study | Coordination in the Supply Chain Management | Group 1 | ESC Rennes 20/26
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Option 1 Option 2
Worlwide procurement 10 1
Regional procurement 8 5
Master scheduler 5 5
Production control 5 10
Operations 1 10
DAO Quality 5 10
Processing engineering 1 10
Supplier quality
engineering (regional)
10 1
Supplier quality
engineering (global)
1 1
Cost accounting 5 1
Inventory control 1 5
Logistics 5 1
TOTAL (complexity level) 57 60
COST PER BOX $10,07 $7,00

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3A
2

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