Dell's supply chain management involves managing quality, demand, logistics, and customer relationships. Dell shares supply chain information with suppliers and assesses supplier performance. It uses systems like ValueChain to coordinate inventory levels and quality metrics. Dell also forecasts demand using techniques like neural networks. Its build-to-order and configure-to-order models help match production to customer orders. Dell integrates supply and demand planning to reduce inventory levels.
1. SUPPLY CHAIN MANAGEMENT
[PC & LAPTOP]
Team VERY NORMAL: Nguyễn Đăng Chí | Võ Sơn Lâm | Đoàn Ngọc Châu | Lâm | Lê Đức Huy
LECTURER: Mr. NGUYỄN QUỐC BẢO
2. Contents
1. Definition of SCM
2. Introduction about Dell
3. Quality management
4. Demand management
5. Logistic management
6. Customer Service
7. Cashflow optimization & Interal collobration
8. Inventory management
9. Benefits and limitation
10. References
4. Founded year: 1/2/1984 | Founder: Michael Dell
Revenue: $59 billion (2015), is the 28th largest
income in the United States.
Number of employees: 108,800 (2013)
Industry Computer hardware, computer
software, IT services, It consulting
Products Personal computers, servers,
peripherals, smartphones, tv
www.dell.com
8. Dell shares information to suppliers.
• Indirectly by mail, phone or internet.
• Directly by meeting each quarter combine exchanging employees to
support technology.
How to assess performance of supliers?
Dell used a scorecard that compares each supplier with
its competitors based on cost, quality, reliability and
continuity of supply
QUALITY MANAGEMENT
9. ValueChain.Dell.com
• Operates as an extranet between Dell and its suppliers.
• Suppliers can get informed about the level of inventory
in the supply chain, supply and demand data, component
quality metrics and new part transition.
QUALITY MANAGEMENT
10. • Dell's new PC models are tested at the same time as the
networks that they reside on are tested. This cooperation with
other vendors reduced the testing period from 60 or 90 days to
15.
QUALITY MANAGEMENT
11. The i2 system (Supply Chain Planner, i2 Collaboration Planner, and i2
Factory Planner to meet it supply chain needs) enables Dell:
• Pull material in to its factories every two hours based on
real time customer order.
• Provide suppliers know factories and assembled to meet
customer demand.
• Automatically checking accessories follow requirement parts
and component list.
• Automatically and electronically ordered directly from
suppliers if the accessories out of stock.
QUALITY MANAGEMENT
12. Ways for Dell to manage quality of SC :
• Conflict – Free Mineral
• Supplier Diversity
• Supplier Responsibility
• Conflict – Free Smelter
• Coalition Code of conduct
• Supplier Global Citizenship Commitment
• Policies and Positions
QUALITY MANAGEMENT
16. Reverse Logistics
• This is efforts to decrease product return.
• The product returned will be resold as Certified Refurbished,
Dell Outlet New or Scratch and Dent, and all Dell Outlet
machines carry a Same-As-New warranty.
=> The products resold Increase from 90% => 94%.
LOGISTIC MANAGEMENT
17. The functions of Dell’s Logistics Services
Warehousing service | Drop in Box | Remove Item Multi Pack Over
| Pack Pallets & Crates |
| Custom Packing | Ship Box Label | Order Consolidation |
| Time & Date Specific | Delivery. Inside Delivery |
Customer Carrier | International Shipping | Reporting & Notification
LOGISTIC MANAGEMENT
18. DEMAND MANAGEMENT
CTO (Configure to order): you
can choose different hardware to
suit your needs such as adding
more RAM, processor speed,
selecting a DVD
BTO (Build to order): Dell pre-
builds what they it believes will
be the most popular
configurations
In 1999, Dell introduced SAP R/3 solutions on Dell PowerEdge servers
With new i2 technology , Dell able to profile customers, target them using
their medium of preference, and also measure the results.
Dell integrated the supply and demand side of the business
by using unique software that would eliminate inventory overages.
19.
20.
21. Management By Objectives (MBO) gives reduced costs
For example when you want to sell a product you send out an
offer to many different customers, instead of sending out 100 offers
to random customers and in the end only do business with three
of them, you can send out three offers and do business with all three.
DEMAND MANAGEMENT
Demand forecasting:
Multilayer Perceptrons and Radial Basis Function neural networks,
Multivariate Adaptive Regression Splines, Machine Learning,
and Tree algorithms are tools to forecast.
The forecast can go wrong with maximum 10 % and is done 12
months in advance.
22. Premier Pages of Dell at http://premier.dell.com
which are custom-designed Web pages containing purchase data
DEMAND MANAGEMENT
24. Premier Pages allows:
- Customer: configure, price, and buy systems at the agreed-upon
price, track orders and inventory through detailed account purchasing
reports by group, geographic location, product, average unit price,
and total dollar value.
- The Dell staff : know detailed demographic information about
customers, customer sales history and trade relationships.
- Sales management: track activity within accounts, and lapsed quotes
can be acted on.
- The marketing department can track customer activity, product sales,
and marketing mixes.
CRM
25. CRM
Smart Selection Catalogue
Catalog in the application ,which suggest some the best or most popular
choices of Dell, ( usually used in large companies) will be integrated with
Dell’s ERP. This system accepts enterprise can use systems to order
from Enterprise Procurement Application of them.
Dell will manage Catalog of enterprise. Enterprise will be repay this
catalog to adjust order
28. CRM
Dell's Enterprise Resource Planning (ERP) B2B E-Commerce
Solutions Helps Companies Save Time & Money:
Better Customer Relations
Simplifies Purchasing Process
No Duplicate Entries
Fewer Errors
Improves Accounts Receivable Turnover Ratio
29. Dell is also using several
other information
technologies, including
e-mail, EDI, video
teleconferencing,
electronic procurement,
computerized faxes, an
intranet, DSS, a Web-
based call center, …
CRM
31. CRM
Oracle 10g Real Application Clusters running on low-cost
industry standards-based Dell Power Edge servers provides for
very cost-effective scaling, high reliability, and the ability to add
capacity by adding additional low cost Servers rather than buying
larger, more expensive proprietary Unix-based servers
33. CRM
1 million Dell part numbers across approximately 200 product
families, and over 2 million Bills of Materials (BOMs) per year.
1.8 million Purchase Order line per year, from more than 5,000
suppliers worldwide.
3 million inventory movements daily from stock rooms to the
factory floor
Transmit 3 million messages for report, analysis and factory
scheduling
Handle approximately 15,000 items per day and vendor
information and contact information. SCM Oracle database
application in Dell’s Americas consists of approximately 3,000
database objects (functions, packages, procedures, trigger, tables,
and views).
New Dell serves solution can solve, manage:
34. • Real time and just in time (JIT)
Quick deliveries, low inventories, little or no obsolescence, and
lower marketing and administrative costs
• Suppliers provide Dell with goods in a “high speed”
No say: “Deliver 5000 to this warehouse every two weeks”,
Dell say: “Tomorrow morning we need 6.795 to be
delivered at door A3 (of the warehouse) by 7 am”
Dell holds an average of less than 6 days of inventory, while the
corresponding average of its competitors is 6 weeks
• The main suppliers are required to maintain inventory near or in
Dell’s plants
• Dell has Merge Centers to store the order before shipping.
INVENTORY MANAGEMENT
35. Expand selling channel: have retailer after successful direct sale model
Increase in capital costs due to the 60- day finished goods inventory
Increased manufacturing costs by 5%,
But it allowed Dell to a gain back its 12% price premium
through add-ons and upgrades
Using customer information to leverage mass customization
Dell customers visited Dell's portable business unit in Round Rock, Texas to
voice their needs in reliability, consistency, and the ability to customize
equipment with screen size and memory. In 1997, Dell responded to this
needs with its new Latitude CP line44
CASHFLOW OPTIMIZATION
36. Get more interest revenue
When customer pay money for Dell in 30 days, Dell only pay for
manufacturer in 9 days, so Dell can get mỏe interest revenue for 21 days
Dell has a lot of supplier provides rapid delivery, competitive prices,
and available computer options to the customers.
CASHFLOW OPTIMIZATION
Use and develope itself operation, planning, management and
control information systems, application and software small and
big company.
For example, Dell reduces enterprise hardcopy printing costs by
50 percent with Lexmark solution
Internet is the best solution for Dell to operate, management, control
supply chain and it is very cheaper than without it
38. BENEFITS AND LIMITATION
Competitive advantage compared with traditional rivals based on:
• Disintermediation (cutting out the middleman):
• Enhancing customer value
• Process and operations innovation
• Easily accessible sales and customer services data that
resulted from online sales
BENEFITS:
39. BENEFITS AND LIMITATION
Spend a lot of cost for technology in the beginning.
Dell must be integrated with many ERP systems, some
steps must still be done manually as data update
Information and payment not is 100% protected on the
Internet
Everything is based on forecast from the last year so
drastic changes can cause problems for Dell and their
sub-suppliers because they have customer order
production
Direct selling model is higher transportation costs
Limitations:
Supply chain management (SCM) is the management of the flow of goods and services.[2] It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (Wikipedia).
In the CTO world, every order is custom and is built only after the order is placed. For commercial customers, this meant that the typical wait time from receipt of order to shipment time was around a seven to ten days. With Smart Selection, Dell pre-builds what they it believes will be the most popular configurations, or SKUs, and will ship them within 24 hours. It called BTO( build to order). Large enterprises can even get their approved custom software image by adding another 24 hours
Because there is BTO Dell can save and improve many things. BTO configurations are easier to service as well. Every CTO configuration is unique and so is a service event
Each 20second The system i2 technologies will collect orders, analyze the parts of orders and check inventory of Dell and suppliers, after that set up the orders, accessories necessarily for suitable supplier
Dell sử dụng hệ thống SCM của i2 Technologies Còn hệ thống tiếp nhận đơn hàng của nàh cung ứng sẽ tự động cập nhật 2 giờ một lần.
Sở dĩ, hệ thống có thể làm việc như vậy nhờ, Hệ thống này có thể liên kết thẳng tới hệ thống ứng dụng trên nền tảng ERP của nhà cung ứng.
. This new i2 technology was used to coordinate the build-to-order processes from order placement to customer support. This system tracks backlog numbers, stock status, and supplier commitments
For example when you want to sell a product you send out an offer to many different customers, instead of sending out 100 offers to random customers and in the end only do business with three of them, you can send out three offers and do business with all three. This is possible if you use MBO.
This system also has a paperless ordering process, with the customer’s existing technology configurations already captured. The process of knowing the customer begins when the customer orders a PC. The PC is built after the customer orders it. This means that Dell has to have a direct relationship with the customer. The final system that Dell is using to maximize CRM is the Dell South Africa’s implementation of an enhanced CRM system with the help of IS Partners, an information systems company. Sales, marketing, financial and management segments benefit significantly from this software. The Dell staff has easy access to the detailed demographic information about customers, customer sales history and trade relationships. Sales management can track activity within accounts, and lapsed quotes can be acted on. The marketing department can track customer activity, product sales, and marketing mixes.
This system accepts enterprise can use systems to order from ERP system ( ERP Procurement Application) of them. CRM of Dell will manage Catalog of enterprise. Enterprise will be repay this catalog to adjust order.
British Airway(BA) : ) used Dell like strategy partner Dell provided about 25000 laptop and desktop for employees of BA. Beside, Dell provided 2 shopping online systems for BA. This thing was Dell accept BA to watch for, purchase and check the orders through website which Dell customize suitable with BA. In website, BA could choose and configure laptop or desktop difference to suit each business department. The employee of BA would be accept their choice and order their computer suitable with their use demand through internet system which was connected with Dell’s system
Dell also uses the Internet to create a community around its supply chain. Dell’s corporate portal has links to bulletin boards where partners from around the world can exchange information about their experiences with Dell’s products, logistics, and customer service.
1, "PunchOut" – Xác thực các truy cập tới catalog của khách hàng tại Dell từ trình duyệt của khách hàng cho việc mua hàng.
( redifine the access catalog of customer at Dell from customer’s webpage for purchase)
2, Order Requisition – Các dữ liệu về giỏ hàng sẽ được chuyển tới cho khách hàng vào thẳng hệ thống ERP của khách hàng.
( The data about cart will transfer for customer push in ERP system of customer)
3, Electronic Purchase Order – Khách hàng chuyển cho Dell các đơn đặt hàng. ( Customer give orders for Dell)
4, PO Acknowledgement – Dell phản hồi lại cho khách hàng. ( Dell response for customer)
Cơ sở của phương thức giao dịch này dựa trên sự trao đổi dữ liệu điện tử EDI giữa các máy chủ của các bên