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DELL’S SUPPLY
CHAIN AND
LOGISTICS
SSM - 4415
Products of Dell Technologies
All suppliers come from 3 x continents
The objective of supply chain management is to
coordinate activities within the supply chain to
maximize the supply chain’s competitive advantage
and benefits to the ultimate consumer
1. Supplier
2. Manufacturers
3. Transporter
4. Distributor
5. Retailers
6. Customers
Supplier Manufacturers Transporter Distributers Retailers Customers
Conventional model
Dell’s model ( Direct model )
PC Manufacturers Resellers Customers
Resellers Customers
Compaq
HP
Retails
20 %
30 %
Customers
Retails
Before Internet Age
Dell’s call centres
- Orders record
- Customer services
- 10k / per day
At Internet Age
Call centres
+
Websites
Dell “PUSH – PULL”
1. Make-to-order helps minimal inventory counts.
2. Direct Sales
3. Build – To – Order Platforms
4. Eliminate Markups
5. Direct End – User 24/7
PUSH PULL
+
Fixed BOM Semi fixed
BOM
70% 30%
Pre-manufactured /pre assembly
Options
Delivery Rate
6 hrs per unit
1 hr
Not more than 5 days
2 – 3 days
*Dell doesn’t hold inventory for more than 6 days
Communication Channel
Dell
Suppliers
customers
Customer side
 Enterprise
 Public
 Small Businesses
Dell makes a forecast demands on these 3 categories. Dell maintain a database to track
purchasing patterns of corporate customers and their budget circle.
Supplier side ( Supplier Integration Model )
Make
to order
 Share the consumers knowledge and patterns to their major
suppliers
 Advise to setup supplier’s manufacturing plan/ warehouses
near Dell’s production facility
 Make a strong and special contracts with suppliers to make
sure Dell is their #1 priority
Overview
https://www.youtube.com/watch?v=4VbW8Dvos_E
https://www.youtube.com/watch?v=Ie7tDr6gPcM
https://www.youtube.com/results?search_query=supply+chain+case+study+of+Dell
https://www.reliableplant.com/Read/7129/dell-supply-chain
https://www.dynamicinventory.net/dell-supply-chain-strategy/
Case Study on Dell Supply Chain Management | Case Study Template (acasestudy.com)
Case study: Dell—Distribution and supply chain innovation - MaRS Startup Toolkit (marsdd.com)
DELL Supply Chain - Published byDarlene Watson
THANK YOU

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