This document discusses Dell's supplier partnership approach. Dell seeks to develop long-term, strategic partnerships with select suppliers by openly sharing information to coordinate production. Dell requires suppliers to keep inventory near assembly plants to enable just-in-time delivery. Dell also monitors suppliers and provides training/support to help suppliers continuously improve their quality, efficiency, and sustainability.

1. MBA 3A
Maria Dawood

2. IT IS
 Encompassing and mobilizing entire organization to satisfy
the customer
 Improving each individual and groups within the
organization
 Integrating the philosophy and practices in day to day
approach to work
 Influencing all product, services, systems, process &
technology
 Long term and continuous and is sensitive to the social
responsibilities of the enterprise
 Supporting ‘High Performance Culture through teamwork,
trust & leadership
IT IS NOT
 A program, that has a beginning & an end. It is a
continuous journey.

3.  Effective supplier-buyer relationship management should
not be seen only
 in terms of cost and financial measures
 but also in terms of other benefits,
 e.g. better quality, information sharing, higher levels of
trust, etc
 Better supplier’s quality  Better product’s
quality
 Customers and suppliers have the same goal –to
satisfy the end user.

4. Quality and timely delivery
JIT concept
Practice of continuous process
improvement
Quality assurance systems (ISO 9000, etc.)

5.  Dell company was established in November 4, 1984. It is an
American multinational information
technology corporation.
 Employing more than 103,300 people worldwide.
 The name of its founder is Michael Dell.
 Dell is committed to responsible business practices and it
hold its suppliers to a high standard of excellence.

6.  Dell started out as a direct seller, first using a mail-order
system, and then taking advantage of the Internet to
develop an online sales platform.
 Dell required a highly reliable supply of top-quality PC
components, but management did not want to integrate
backward to become its own parts manufacturer.
 The company sought to develop long-term relationships
with select, name-brand PC component manufacturers.
 Dell openly shared its production schedules, sales forecasts
and plans for new products with its suppliers. This
strategic closeness with supplier partnership allowed Dell
to reap the benefits of vertical integration

7. Some of the qualities Dell look for in its suppliers are:
 Cost competitiveness
 Understanding of Dell's business
 Proven track record and references
 Good financial standing
 Ability to conduct business electronically, e.g. via e-mail
and internet
 Competitive advantage and "Value Added" capabilities
 Ability to grow with Dell
 Core competency in supplier's line of business
 Technological capabilities (hardware & software)
 For production suppliers: Continuity of Supply strategy
 For production suppliers: Quality processes (ISO 9000 or
equivalent)
 Diverse supplier certification by a third-party.

8.  Dell requires its suppliers to keep inventory on hand in
revolvers or supplier logistics centers (SLCs).
 Revolvers are small warehouses located within a few miles
of Dell’s assembly plants. Each of the revolvers is shared
by several suppliers who pay rents for using their revolver.
 Dell does not own the inventory in its revolvers; this
inventory is owned by suppliers and charged to Dell
indirectly through component pricing
 Dell also required its key suppliers to establish inventory
hubs near its own assembly plants.
 This allowed the company to communicate with supplier
inventory hubs in real time for the delivery of a precise
number of required components on short notice. This
“just-in-time,” low-inventory strategy reduced the time it
took for Dell to bring new PC models to market.

9.  Dell and dell’s suppliers are required to comply with all
applicable laws and regulations where business is
conducted.
 Company required its suppliers to achieve and maintain
certification on two important international standards; the
international organization for standardization (ISO) 14001
environmental management system standards and the
occupational health and safety assessment series (OHSAS)
18001.

10.  Training: Dell focuses on capability building and hosts
multiple supplier workshops each year that address relevant
areas affecting our suppliers.
 Continuous Improvement: It invests company’s resources and
time toward driving improvements throughout their supply
base. It encourages partners to view social and environmental
responsibility as a journey of continuous improvement.
 Quarterly Business Reviews: To embed socially responsible
behavior into business activities, Dell includes a review of
requirements and principles in quarterly business reviews that
are held with key suppliers.
 Monitoring: The partnership includes on-site monitoring
through audit, to establish whether the supplier has systems
in place to facilitate continued conformance as well as the
development of sustainable corrective action plans.

11.  1. Quality of material
 2. Increase efficiency
 3. Lower cost
 4. Customer satisfaction
 5. on time delivery
 6. Continuous improvement
 7. JIT
 8. Quality assurance system
 9. Shared vision

12.  To understand the rational for partnering with
suppliers, one must understand the goal. The
goal is to create and maintain a loyal, trusting,
reliable relationship that will allow both
partners to win.
 Dell is working with its suppliers, sharing its
expertise and best practices, and striving to
improve its supplier’s capabilities. And, Dell
work to make it possible for its suppliers to
uphold the same high standards that it set for
itself.