Dell Supply Chain Analysis

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lysDell Supply Chain Analysis Group 11: Mentor: Heidi C. Dreyer Sep-09-2012 Outlines • 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…show more content…
The responsiveness spectrum Somewhat Somewhat efficient responsive Dell: Highly responsive Highly efficient Why it works well 1.Facilities 2.Inventory Service level: high customization, etc 3.Transportation Variety: high variety 4.Information Quality: Reasonable quality 5.Sourcing 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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