Dell Supply Chain Analysis

969 Words Jun 14th, 2013 4 Pages
lysDell Supply Chain Analysis
Group 11: Mentor: Heidi C. Dreyer Sep-09-2012

• What’s direct model? • Dell’s position in PC market; – Dell’s competitive strategies; – Implied demand uncertainty analysis; • Dell’s supply chain capabilities; – Facilities; – Inventories; – Transportations; – Information; – Sourcing; – Pricing; – Responsive supply chain; • Strategic fit; • Limitations; • Challenge and proposals for emerging markets;

What’s Direct Model?
Several supply chain models in push/pull view

Make to stock(HC, Lenovo)

Build-to order (Direct Model)

Push production

Pull production

Dell’s Position in PC market

Service level: high customization, etc
Competitive Strategy: Dell chooses the customers who
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The responsiveness spectrum Somewhat Somewhat efficient responsive
Dell: Highly responsive

Highly efficient

Why it works well


Service level: high customization, etc


Variety: high variety


Quality: Reasonable quality


Price: Reasonable price

Lead time: approximately one week 6.Pricing 7.Customer service

Strategic Fit

Why it works well

High implied Uncertainty VS. Responsive SC

Strategic Fit--Intercompany Interfunctional Scope
• • • Dell SC considered different functions inside the company; Dell SC considered different stages; The intercompany interfunctional scope could obtain the maximize profitability.
Suppliers Dell Customer

Intercompany Interfunctional Scope Competitive Strategy

high [variety, customization, service level], reasonable [price, quality, lead time].

Supply Chain Strategy

Build facilities next to Dell plant floor;
Managing manufacturing per Dell MRP forecast; Ensuring freights were last loaded in order to be unloaded first.

Build to order; Lowest inventory; No distributors and retailers; Shipping to customer home, etc.
Online sales; Sharing MRP forecast, order flow, Inventory with suppliers, etc Direct contacting with customer Ordering computers on line; Customizing the computers.

Information Strategy

M&S Strategy

F&A strategy

Tight cash flow

Limitations of Direct

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