Case Study - Dell Value Chain

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Question 1
How has Dell used its direct sales and build-to-order model to develop an exceptional supply chain?
The many challenges in order to improve the supply chains usually come with the unidentified. Many companies produce products they think their consumer will want. After that, they ship their products to retail stores. Then, these stores try to sell the products to the customers. Here, the supply chains slows down as they are figuring out what to build next. Then, these companies deal with their suppliers to get the materials for the products. Here, the supply chain slow down more and even slower as they wait for the product to get sold and get paid.
Dell's assembly plant in the US

Dell has used its direct sales and
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The stores have limited supplies with limited selection. Due to the supply chain model they have set up, Dell allows customers virtually unlimited option for them to customize their computer. In addition, Dell can produce the computer in a matter of hours and have it shipped to the customer in a matter of days.
In summary, Dell competes with a retailer by offering a lower price and allowing the consumer to customize the product to the options that they prefer.

Question 5
How does Dell’s supply chain deal with the bullwhip effect?
Theoretically the Bullwhip effect does not occur if all orders exactly meet the demand of each period. This is consistent with findings of supply chain experts who have recognized that the Bullwhip Effect is a problem in forecast-driven supply chains, and careful management of the effect is an important goal for in supply chain management. Therefore it is necessary to try to figure out demand as far in advance as possible.
Dell has achieved this by constructing Web pages for the suppliers. These pages allow the suppliers to view order for components they produce as well as how much stock is currently in inventory at Dell. This allows the supplies to build for demand in real time.
In summary, if you can build in real time based on actual demand you will not have to worry about inventory build-up of unnecessary components and products. Dell’s customized
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