Process Designs and Supply Chains
INTRODUCTION
Various supply chain aspects involved, such as:
Raw materials
Equipment
Manufacturing
Storage and distribution
Dells success relies on the fact that it has a unique supply chain.
Through the chain, it is able to get the needed information from the clients and pass it to the suppliers.
Dell also ensures that a close relationship with the customers is maintained through the use of a direct sales model.
How does Dell compete in this highly volatile market and manage to make billions of dollars in spite of the other available vendors in the market? Dell spends an enormous amount of time figuring how it can minimize the costs and pass the benefits of the savings to the end customers. ("Dell's Make-To-Order System Leaves Competitors In The Dust," 1998).
This is actually the main goal of the company, and one that has led to its success.
Dell uses a very effective and unique supply chain management. The supply chain makes it possible for Dell to acquire large volumes of information from its customer base. This information is then shared with the departments via the direct sales model to create a close relationship with the customers. Computers are made according to the specific requirements of the clients. (Artman, 2013)
All this is possible because of the partnership Dell has with its suppliers of Raw Materials and equipment. The manufacturing of the items is a rather simple process where by Dell contracts several suppliers that each build a component and ship it to Dell for final assembly. This allows for the fully customizable product the end users receives. (DELL Inc., 2013)
This whole process somewhat forms a circle or a never ending loop.
2
Information flow in the supply chain
Facilitating communication is a key internal process in the organization
Makes use of the customer-supplier circle and the sales-procurement-supplier ties.
A collaborative effort is made utilizing the use of modern technologies.
Has a simple user interface for online access.
Makes use of oracle products to ensure that the flow of information is as expected.
Dell’s information in forever continuous.
The company has a constant flow of information and data in loop. As stated in an earlier slide, one area is between sales, procurement and the supplies. This exchange of communications with suppliers which includes forecasted sales dollars, requirements and quantities is key. The suppliers can reply with what they can accomplish. They work together and make a collaborative effort using the most modern technologies. The online access between the Company and suppliers enable the information to flow more thoroughly.
Dell uses an oracle database and other tools such as E-Business Suite 11i, oracle order management software, oracle fields’ sales and the oracle customer data hub. This makes for an easy transition from raw material to finished product and is quite simple to track all the processes carried out ...
Process Designs and Supply ChainsINTRODUCTIONVarious s.docx
1. Process Designs and Supply Chains
INTRODUCTION
Various supply chain aspects involved, such as:
Raw materials
Equipment
Manufacturing
Storage and distribution
Dells success relies on the fact that it has a unique supply
chain.
Through the chain, it is able to get the needed information from
the clients and pass it to the suppliers.
Dell also ensures that a close relationship with the customers is
maintained through the use of a direct sales model.
How does Dell compete in this highly volatile market and
manage to make billions of dollars in spite of the other
available vendors in the market? Dell spends an enormous
amount of time figuring how it can minimize the costs and pass
the benefits of the savings to the end customers. ("Dell's Make-
To-Order System Leaves Competitors In The Dust," 1998).
This is actually the main goal of the company, and one that has
led to its success.
Dell uses a very effective and unique supply chain management.
2. The supply chain makes it possible for Dell to acquire large
volumes of information from its customer base. This
information is then shared with the departments via the direct
sales model to create a close relationship with the customers.
Computers are made according to the specific requirements of
the clients. (Artman, 2013)
All this is possible because of the partnership Dell has with its
suppliers of Raw Materials and equipment. The manufacturing
of the items is a rather simple process where by Dell contracts
several suppliers that each build a component and ship it to Dell
for final assembly. This allows for the fully customizable
product the end users receives. (DELL Inc., 2013)
This whole process somewhat forms a circle or a never ending
loop.
2
Information flow in the supply chain
Facilitating communication is a key internal process in the
organization
Makes use of the customer-supplier circle and the sales-
procurement-supplier ties.
A collaborative effort is made utilizing the use of modern
technologies.
Has a simple user interface for online access.
Makes use of oracle products to ensure that the flow of
information is as expected.
Dell’s information in forever continuous.
The company has a constant flow of information and data in
loop. As stated in an earlier slide, one area is between sales,
3. procurement and the supplies. This exchange of
communications with suppliers which includes forecasted sales
dollars, requirements and quantities is key. The suppliers can
reply with what they can accomplish. They work together and
make a collaborative effort using the most modern technologies.
The online access between the Company and suppliers enable
the information to flow more thoroughly.
Dell uses an oracle database and other tools such as E-Business
Suite 11i, oracle order management software, oracle fields’
sales and the oracle customer data hub. This makes for an easy
transition from raw material to finished product and is quite
simple to track all the processes carried out within the supply
chain and ensure that the supplies are in order. ("Dell's Make-
To-Order System Leaves Competitors In The Dust," 1998).
3
The circle of trust. Dell uses the constant flow on information
to STRATEGY
To do business with its customers one on one through the phone
and internet. In doing so, Dell will meet its customers’s
expections of :
· Highest quality.
· Leading technology.
· Competitive pricing
· Individual and company’s accountability.
· Best in class service and support
4. · Flexible customer capacity
· Financial stability.
“The direct relationship continues throughout the
customer experience” ("Dell's Make-To-Order System Leaves
Competitors In The Dust," 1998).
4
Process matrix
A good example is the benefits measure
The use of process metrics can be effective in identifying the
progress of the components, discovering the various areas that
need more attention and also taking note of the areas that need
more resources depending with the needs of the customer
While there is a myriad of metrics that can be used to measure
the process in the supply chain and establish improvement
goals. One way is to take a measure of the various benefits in
place. No process cannot be changed without checking if the
benefits will be ineffective. Process Metrics is an effective way
in identifying the progress
a good one would be to
There are a number of matrix that can be used in this case to
measure the business processes in the supply chain and establish
the improvement goals that can be implemented. One of these is
to take a measure of the various benefits in place. A process in
the flow chart cannot be changed without checking on the
benefits that will result as it might be ineffective. This can be
effective in identifying the progress of the components,
discovering the various areas that need more attention and also
5. taking note of the areas that need more resources depending
with the needs of the customer. In the case of Dell, it will be
good to check on the information loops to see if everything is
progressing as expected allowing checks along the way.
Measurement is important, as it affects behavior that impacts
supply chain performance. As such, performance measurement
provides the means by which a company can assess
whether its supply chain has improved or degraded. The
importance of using measures to help ensure that a supply chain
is performing well. (Larry Lapide, Ph.D - 2000, April 14)
5
References
Artman, J. (2013). eHow tech - History of Dell Computers.
Retrieved from http://www.ehow.com/about_5436345_history-
dell-computers.html
DELL Inc.. (2013). DELL. Retrieved from
http://www.dell.com/learn/us/en/uscorp1/season-of-
growth?c=us&l=en&s=corp&cs=uscorp1
Dell's Make-To-Order System Leaves Competitors In The Dust.
(1998, July 3). Manufacturing & Technology News, 5(13).
Retrieved from
http://www.manufacturingnews.com/news/98/0703/art1.html
Larry Lapide, Ph.D (2000, April 14) - What About Measuring
Supply Chain Performance?