dell supply chain management 1234495672532518 2

8/3/2019 Dell Supply Chain Management 1234495672532518 2

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SUPPLY CHAIN MANAGEMENT SYSTEM

By : HIMANSHU MALHOTRA


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OBJECTIVES

To examine and analyse Dells Direct model, itsbasic working, & success.


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SUPPLY CHAIN MANAGEMENT

Supply Chain Management is the integration ofkey business processes across the supply chainfor the purpose of creating value for customersand stakeholders


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History

Started in Michael Dellsdorm room at the Universityof Texas in 1984

Grossed $75 million in salesin 1985

Ranks 2nd in computer sales


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Michael Dell

College dropout

Changed how computers

were sold

Started his business with

$1000 in capital

Now worth $17.3 billion


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How do they do it?

Dells success is a combination of:

Direct Sales

Build-to-order

Supplier Integration

Together these allow for maximumeffectiveness with minimum cost


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Direct Sales

A direct sales system allowsDell to:

Cut costs

Build relationships with

its customers

Deliver exactly what thecustomer wants


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Build-to-order

A build to order system allowsDell to:

Increase inventory velocity

Minimize inventory costs

Build exactly the computer

that its customers want

Minimize the need forforecasting


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Supplier Integration

Supplier integration allowsDell to maximize thebenefit of its other core

competencies

Here is how they do it:

Location of supplierwarehouses

Extranet

Meetings with suppliers


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Conclusion

The secret to Dells success is the synergybetween all of its competencies

And Dells focus on collaboration at every level.

A great supply chain strategy, linked withoperational excellence, can provide success fornot only the company in question but also its

partners and customers.


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dell supply chain management 1234495672532518 2

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