dell supply chain
DESCRIPTION
TRANSCRIPT
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DELL SUPPLY CHAIN ANALYSIS
Presenters:Deepika K S Deepika SDhanush PatelDileep MDileep
- Dell marketing team
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• Started in Michael Dell’s dorm room at the University of Texas
• Reason- supply chain and distribution strategy
1983 1985 2000
$6 million $500 million $25 billion
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Supply chain integration strategies
• Use of rapid seamless communication • A clear definition of what DELL does best • Selection of partners who are best in their respective
fields • Use of a minimum number of suppliers • Using internet as a strategy• Less emphasis on guarding intellectual assets and more
emphasis on using assets rapidly before they become out of order
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Functioning
Historical Sales List price Promotions Competitor promotions Inventory position Market trends
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STRENGTHS
Total command Knowledgeable
Low operating costs
Direct customer
relationship
Inventory
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REASONS FOR SUCCESS
• No more middlemanMail-order systemUse of internet
• Virtual integrationDell also required its key suppliers to establish inventory hubs near its own assembly plants.
• Innovation on the assembly floorManufacturing cells
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WEAKNESS
• Dell’s sales revenue from educational institutions such as colleges only accounts for a merely 5% of the total
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OPPORTUNITIES
• Diversification strategyPeripherals including printers and toners, but now also includes LCD televisions
• The internet
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THREATS
• The competitive rivalry
• Fluctuations in the world currency markets
• Almost identical prices
• Technological advancement
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"We are always looking for ways to take out waste, to take out time and take out costs, and then passing those savings along to our customer"
- Dave Schneider Engineering Manager for
Dell Americas operations
DELL
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THANK YOU