Dell: Process Strategies and Analysis

Recognized as one of the leading computer manufacturers, Dell uses an astonishing supply chain through pull-to-order procurement and just-in-time inventory management. Their strategy is highly efficient and drives costs to a minimum while allowing for minimal lead times and production times of under 4 hours for each order as their suppliers maintain levels of inventory based on forecasts within Dell warehouses near Dell assembly

Dell uses a just in time order fulfillment policy and accurate forecasting of sales to minimize inventories. This allowed Dell to hold inventory of finished products far below levels of their competitors (10-20% compared to 50-70% industry level) and furthermore allowed them to quickly implement changes to their product lines as new technologies became available. This quick inventory turnover also allowed Dell to retain more capital. Finally, this policy enabled Dell to respond immediately to technological progress in components and deliver state of the art new finished products (e.g. Pc’s holding the newest Pentium microprocessors) while competitors

On 04/22/16, Ken'Dell came to school with a red scratch mark on his face. The reporter stated that the child isnt complaining of pain or needs any medical treatment. According to the reporter, Ken'Dell told her the scratch on his face came from running into a pole. According to the reporter, the child told he ran into a pole while chasing his baby brother, that chased a cat. The reporter stated that the children were not properly supervised and was outside the home alone. Ms. Pendleton stated there are not any prior concerns and the child's basic needs are being met. Ms. Pendelton stated her primary concern is the proper supervision.

By grafting its system of custom direct sales onto the Internet infrastructure, Dell has transformed these activities, creating an innovative and efficient procurement, production, and distribution network. The innovative advance made by Dell in deploying Internet communication as the foundation of its production network, is a process innovation. Although to some extent, the Internet has enabled Dell to create a new product -- a PC custom-configured through Internet communication -- it is the process of organizing flows of materials and information within its network, from customer order to procurement, production and delivery, by means of Internet communication, that defines the innovation at the Firm. The case supports this notion by stating “While most other PCs were sold preconfigured and pre-assembled in retail stores, Dell offered superior customer choice in system configuration at a deeply discounted price, due to the cost-savings associated with cutting out the retail middleman. Additionally, an important side-benefit of the Internet-based direct sales model was that it generated a wealth of market data the company used to efficiently forecast demand trends and carry out effective segmentation strategies. This data drove the company’s product development efforts and allowed Dell to profit from information on the value drivers in each of its key customer

List ways that Dell conducts research on its customers to continually improve products and services.

Dell Computer Corporation was founded in 1984 by Michael Dell. From the early 1990s until the mid-2000s, Dell was ranked as a PC market leader relying on their distinctive marketing pattern “Direct Model” which undertook direct communication with customers and provided customized products. Recently, the PC industry is facing inconceivable worldwide competition, and Dell is gradually losing their competitive advantages by using its direct model in critical business segments. The company is facing shrinkage of growth, increasing competition, declining quality of customer service, and limitation of expansion. These issues have an enormous impact on Dell’s position as a technological giant in the PC industry.

As director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri

First, I think it is necessary to briefly describe the development of mass production to mass customization. Mass customization has been one of the causes of the economic growth in the 21st century. Below, you can see figure, which shows evolution of mass customization:

Dell's value-chain strategy combines technologies from Intel, IBM, and Microsoft to serve customers efficiently and with state-of-the-art computer technology. Dell is able to introduce next generation products faster than its competitors can because its market-driven strategy is developed around a direct sales, built-to-order business design. This distinctive process capability is supported by effective supplier, distribution, and service partnerships with other companies. Dell's management understands its customers since company personnel are in close contact with buyers who make inquiries and place orders. Not only does Dell process some 500,000 telephone calls each week, but 65,000 corporate customers are linked to Dell through their own Dell Premier Pages on the Internet, and Dell's Internet based sales reached $50 million a day in 2000. Indeed, in 2001, Dell became leader in global market share. (market driven strategy ch 1, http://highered.mcgraw-hill.com/sites/dl/free/0072466650/46701/cra66650_ch01.pdf#search='dell%20external%20influences%20marketing%20strategy')

            The Value-Chain was conceptualized and popularized by Porter in 1985 through his book, a best-seller, Competitive Advantage: Creating and Sustaining Superior Performance. The main thrust of “the value-chain” is to categorize the generic “value-adding activities” of an organization. The value-chain management tool recognizes two value-adding activities in an organization, the “primary activity” and the “support activity”. The primary activities includes the following, inbound logistics, production, outbound logistics, sales and marketing, and maintenance. Support activities include administrative infrastructure management, human resources management,

The value chain of a company is the entire product flow of a company beginning from its suppliers to the customers as well as managing the flow of information so that both the customers derives maximum satisfaction while at the

DELL Computers, a leading PC supplier to corporate and government customers, today is now among the first companies to provide its customers with the next level of industry-standard Pentium processor power, while many vendors are still struggling to broaden their processor-based product lines. Dell 's unique ability to take a market strategy position during important technology transitions because of its build-to-order manufacturing process. This build-to-order approach allows the company to maintain low inventory levels and integrate emerging technologies into systems. Today 's customers are reducing their supplier bases, providing the opportunity for the most capable suppliers to seize huge market share gains as Dell needs to redefine

Dell, one of the largest technological corporations in the world, sells personal computers, software, computer peripherals and other digital products among the world. According to the Fortune 500 list, Dell is currently listed as number 51. Dell is well known for its customer-oriented services such as supply chain management and electronic commerce. More specifically, the supply chain management (SCM) used by Dell allows customers to build their own PC online and successfully satisfies each customer’s specification. The selling and buying of products in Dell is conducted over electronic systems, for instance, online transaction process enables consumers attain various services through the Internet. Such considerate

Dell’s direct model approach enables them to develop a deep understanding of the customer and how the product is likely to be used. This allows Dell to make quick but wise decisions in balancing the benefit offered by a feature against the time required to develop it. As mentioned earlier, Dell’s direct model approach cuts wasted resources, time wasted with the middleman, and sells directly to the consumer. Moreover, a team that knows its customers will be able to reach such conclusions on the fly, rather than by checking with the marketing department and implementing a new round of market research. Speeding up development is hard work, which is why Dell utilizes technology to reduce their development times. Technologies, such as computer networking, videoconferencing, product data management software and computer aided design (CAD) can support an improvement, but the center of the change must be in the management styles, team

The well known operation model of Dell called ‘Dell Direct’ base its value added in just work on demand eliminating intermediaries in procurement, manufacturing and distribution processes. The technology used by the company in the manufacturing process is the base of success and therefore play a very important role in its operations. Dell’s technology allow to the company to combine its resources, its relationship with suppliers and its consumer communication capabilities, developing one big advantage over its competitors. Dell is in “Mass Production” process category due to mainly the stable demand of products, the assembly work as a main line of production and with a good level of efficiency. To consider Dell as a manufacturing or assembly company is a constant discussion even for the employees of the company. Due to the nature of the products (mainly computers) they build new products that do not exists in the market, in this sense they are manufactures. But in another sense they just assemble component which production is on suppliers, in this sense could be considerate that dell “buy to sell”. In this document the company will be considered as a manufacturer company. The generation of innovative ideas for the production line is pulled due to the necessity of new kind of products defined basically due to the interaction with suppliers and