dell logistics - copy

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DELL LOGISTICS NETWORK

SUBMITTED TO: PROF. DEEPAK JAKATE



GROUP MEMBERS� GURUPRASAD SHEJWAL 33

� SUMIT TAMRAKAR 38

� KAMALA KANTA KAR 12� JITENDRA KUMAR 46

� SOURAV SEN 45

� CHANDAN MISHRA 17



INTRODUCTION

Founded by: Michael Dell (CEO) in 1984.

The company is well known f or its innovations in supply chain management .

Dell is selling computer systems directly to customer s. This direct business model

eliminates retailer s that add unnecessar y time

and cost, or can diminish Dell's under standing of

customer expectations.



The direct model allows the company to build

ever y system to order and off er customer s

power f ul, r ichly-configured systems at

competitive pr ices

PRODUCTS:-

Laptop, Servers, Data Storage Devices, Network

Switches, Software, and Computer peripherals.



DELL LOGISTICS NETWORK Dell¶s new and improved design f or a channel

distr ibution model:

Order processing Pre-production

Accessor ies ready

Configur ation

Test

Boxing

Distr ibution prepar ations

Shiping(tr anspor tation)



TRANSPORTATION SYSTEM DESIGN

Optimize inbound and

outbound tr anspor tation

networ ks

Collabor ate with the bestlogistics and

tr anspor tation provider s

Mode of tr anspor tation ±

By Ship By Rail

By Air

³GREEN´ INITIATIVES



Tr anspor t Networ k Options

DIRECT SHIPMENT NETWORK

CUS

TOM

ER

CUS

TOM

ER

CUS

TOM

ER

CUS

TOM

ER

DELL

ASSEMBLE

PLANT

DELL

ASSEMBLE

PLANT

DELL

ASSEMBLE

PLANT

DELL

ASSEMBLE

PLANT

DELL

WEB

PRODUCT FLOW

INFORMATIONFLOW



MIS FOR COMPANY

Dell chose i2 Technologies f or its SCM system.

Ever y 20 sec the S/W aggregates order s,

analyzes mater ial requirements ,compares Dell¶s

on-hand inventor y with its supplier s¶ inventor y

and then creates a supplier bill of mater ial to

meet its order needs .



STORAGE Dell has competitive advantage of lowest in the Industr y

cost structure, and this cost Structure due in par t to

DELL r aw mater ials management str ategy.

e-VMI(Vendor management inventor y) and JIT

combination of management techniques

increasingly zero inventor y. Dell receives the exact

mater ial ever y two hour s to f ulfill actual customer order s.

Dell¶s factor ies have only 7 hr s wor th of inventor y .

the or iginal par ts are directly sent to the assembly line,

and through "Kanban management" technology in the

supply chain on var ious aspects of the distr ibution



Dell has six production unit :

Austin, Texas, USA

Nashville, Tennessee, USA

Eldorado do Sul, Brazil

Penang, Malaysia

Xiamen, China

Limerick, Ireland

Chennai .India

They carr y lar ge quantities of diff erent products,to increase their lever age when dealing withtheir customer s.

90% supplies ordered online using integr ated

websites of supplier and Dell (B2B).

DISTRIBUTION



Continued.

Vir tual integr ation

Innovation on the assembly f loor

Disintermediation (cutting out the middleman)

Enhancing customer value



DISTRIBUTION

LENGTH OF SUPPLY CHAIN

Supplier

FactoryWarehouse

Customer



Benefits to company by such

distribution

CASH: Dell maintains a negative cashconver sion cycle means the payment receive f or

product bef ore it has to pay f or mater ial.

COST: Dell¶s direct sales and build-to-order model has achieved super ior per f ormance in the

PC industr y in terms of inventor y turnover ,reduced over head, cash conver sion, and return on investment



Bypassing the reseller channel that causes

f ur ther cost reduction to company.

CRM: Direct customer relationship is the key to

Dell¶s business model .

DEMAND FORECAST: Dell additional

advantages is tr y to f orecast demand and ship

products based on those f orecasts.



Benefits to customer by such

distribution

Tailored off er ings f rom Dell in terms of add-on products and services.

Ver y customizable systems at an

aff ordable r ate, since Dell manufactur ingbuilds specifically f or each customer .

dell logistics - copy

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