Dell Inventory Management

2977 WordsJul 23, 201012 Pages
[pic] DELL SCM : A CASE STUDY Background (General Facts) 1. Dell is a computer corporation recognized for manufacturing computer systems through parts assemble. In 1983, Michael Dell saw an opportunity in using IBM compatible computers for a new assembly line that can be sold to local businesses. The idea as explained by Michael Dell, in one of his interview, is that in the early days of computers' manufacturing, companies had to be able to produce every part of the system. As the industry matured, companies started to focus on single parts and to become specialized in creating items that can be assembled with other parts to prepare a computer. As a result, Dell understood that to have a competitive edge in the market, they needed to…show more content…
(d) Business Automation: As Dell advanced into online markets, its sales staff feared from losing their jobs in favor of automated sales transactions. (e) Dynamic Industry: The technology industry requires closely monitoring consumers' trend to maintain a low gap between the point of demand and the point of supply. Analysis 7. Supply Chain Management (a) Supply Chain Management (SCM) aims at integrating all corporate activities to improve relationships at all levels (internal operations, supplier networks, and distribution channel) to meet the competitive edge and satisfy the customer. In order to build an effective and complete business process that supports SCM, information among all business partners need to be shared. Information sharing through the Internet reduces the gap for business-to-business (B2B) commerce by enabling seamless integration with enterprise processes among partner corporations. (b) Dell developed its internal business process by creating production cells that start assembly at the point of order. It also established an internal information system to make the details of the products under production electronically available to all parties within the chain. To manage the supply of computer parts, Dell maintained close relationships with their suppliers and logistics providers to make their vendors manage the
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