Dell Supply Chain Strategy Essay

3393 Words14 Pages
An overview of Dell Inc‘s Supply chain
OMS 511

Introduction
The Personal Computer industry has revolutionized the way of life. Technological forces have the most significant influence on the computer hardware industry. The extremely short product life cycle for computers, influenced by the upgrade cycle, has both positive and negative effects on companies within the industry. It challenges companies to maintain superior inventory management and supplier relationships: areas where Dell excels. Technological change also drives waves of additional computer purchases within a mature market.
Dell, Inc was the first major company to really seize the opportunity of selling via internet. It was founded in 1984 by Michael Dell. Traditionally,
…show more content…
By being in direct contact with the changing market, Dell is able to sense the altering customer demands and synchronize its operations through internal collaboration to meet these demands before its competitors. The market demands keep changing quickly which makes it difficult to foresee them. It is a challenge to meet these demands and hence Dell focuses on managing them by continuously rebalancing the demand and supply. If the demand exceeds supply, the company works with its suppliers and looks out for external options to meet the exceeding demands. It also focuses on demand shift through product promotion on its web portal in no time (Brian, 2004)
Internal collaboration: One of the key aspects in the success of Dell supply chain is ‗internal collaboration‘. Through this, Dell sometimes tries to shift the demand using product promotion on its web portal. The company‘s direct communication system helps its ‗people‘ to communicate within different hierarchical levels. ‗Direct‘ refers not only to communication with its customers, suppliers and vendors but also with its employees and team members.
Leveraging partners: Dell signals its suppliers about the customer demand, the projected market shifts and sourcing strategies and in return expects the suppliers to share information regarding new technology drivers and capacity outlooks. With the help of information systems, it pools data on demand and supply trends. It also
Get Access