Michael Dell founded Dell in 1984. Dell is known for innovations in supply chain management and sells computer systems directly to customers, eliminating retailers. Dell uses a build-to-order model where customer orders trigger production. Dell chose i2 Technologies' SCM system to aggregate orders every 20 seconds, analyze material needs, and create supplier bills. Dell aims for just-in-time inventory, receiving exact materials every two hours. Factories have only seven hours of inventory. Distribution occurs through Dell's six production units globally. Benefits include lower costs, cash flow from payment receipt before paying suppliers, and customized systems through direct customer relationships.

1. By
AMAL D SHAMEEN
RA1852001020053

2. DELL LOGISTICS NETWORK
 Founded by: Michael Dell (CEO) in 1984.
 The company is well known for its innovations in
supply chain management .
 Dell is selling computer systems directly to
customers. This direct business model eliminates
retailers that add unnecessary time and cost, or
can diminish Dell's understanding of customer
expectations.

3.  Dell’s new and improved design for a channel
distribution model:
 Order processing
 Pre-production
 Accessories ready
 Configuration
 Test
 Boxing
 Distribution preparations
 Shiping(transportation)

5. MIS FOR COMPANY
Dell chose i2 Technologies for its SCM
system.
Every 20 sec the S/W aggregates orders,
analyzes material requirements ,compares
Dell’s on-hand inventory with its suppliers’
inventory and then creates a supplier bill
of material to meet its order needs .

6. STORAGE
 Dell has competitive advantage of lowest in the Industry cost
structure, and this cost Structure due in part to DELL raw
materials management strategy.
 e-VMI(Vendor management inventory) and JIT combination of
management techniques
 increasingly zero inventory. Dell receives the exact material
every two hours to fulfill actual customer orders.
 Dell’s factories have only 7 hrs worth of inventory .
 the original parts are directly sent to the assembly line, and
through "Kanban management" technology in the supply
chain on various aspects of the distribution

7. DISTRIBUTION
 Dell has six production unit :
 Austin, Texas, USA
 Nashville, Tennessee, USA
 Eldorado do Sul, Brazil
 Penang, Malaysia
 Xiamen, China
 Limerick, Ireland
 Chennai .India
 They carry large quantities of different products, to increase
their leverage when dealing with their customers.
 90% supplies ordered online using integrated websites of
supplier and Dell (B2B).

8. DISTRIBUTION
LENGTH OF SUPPLY CHAIN
Supplier
Factory Warehouse
Customer

9. Benefits to company by such
distribution
CASH: Dell maintains a negative cash
conversion cycle means the payment receive
for product before it has to pay for material.
COST: Dell’s direct sales and build-to-order
model has achieved superior performance in
the PC industry in terms of inventory
turnover, reduced overhead, cash
conversion, and return on investment

10. Bypassing the reseller channel that
causes further cost reduction to company.
CRM: Direct customer relationship is the
key to Dell’s business model .
DEMAND FORECAST: Dell additional
advantages is try to forecast demand and
ship products based on those forecasts

11. Benefits to customer by such
distribution
Tailored offerings from Dell in terms of
add-on products and services.
Very customizable systems at an
affordable rate, since Dell manufacturing
builds specifically for each customer.

22. Why would Zomato buy a
logistics company?
• “We make Rs 20 odd rupees as a contribution margin net
after everything on our online order business in India. For the
20% of orders, where we have delivery partners, we do
negative Rs 2 (as contribution margin). We lose money, in
spite of the fact that we’ve outsourced delivery to someone
else. The delivery boys of that company only do food during
lunch and dinner, and do ecommerce delivery during the rest
of the day. Even those guys, our delivery partners, are not
able to make this work very well at a unit economics level.
There will be scale advantages when it comes to logistics. But
will it get to the Rs 20 margin? I don’t see any path to that if
we do delivery on our own or outsource delivery. The
restaurants know their local area very well, and they are best
equipped to do delivery on their own.” — Deepinder Goyal
on the delivery business in 2016.

23. Thank You