Essay on Senior Project Manager

1081 Words Aug 17th, 2013 5 Pages
| U02A1 Dell Supply Chain | James DeHaven | BUS3022 Fundamentals of Supply ChainCapella University |

Why has Dell’s Direct Supply Chain been so Successful?
The direct supply chain model that Dell has been using for many years to sell customized PC’s to customers via the internet has been very successful. Dell designed and structured the supply chain to provide customized computers in a quick manner and with a reasonable price. Customers can visit the Dell website and configure the PC they desired and see the cost options they selected. Once the order was finalized, Dell would then start the building of that customized computer to meet the customer’s selection and ship the finished product directly from the manufacturing
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Using the direct model supply chain design, the company can bring these new products and capabilities quickly to market. These changes in technology can impact how the supply chain functions, so Dell needs to properly introduce these new technologies in an effective manner, and not impact how the computer is post assembled at the manufacturing facility after the customer orders.
In 2007, Dell decided to change the supply chain strategy to support the use of retailers for selling a standard configuration computer for customers. Customers could visit their local Wal-Mart or if in China, the local GOME retail store to pick from the standard computer models available (Chopra, 2012, Pg. 6). The changes Dell made to support the retailer to end customer model helps increase the revenues and provides a low cost solution at retail points of sale. Dell utilizes the retailer’s distribution and retail store facilities which keeps the costs low for Dell and also sees lower outbound transportation costs compared to the online supply chain model (Chopra, 2012, Pg. 21).
There are potential uncertain events that could occur in the market or future to impact Dell’s supply chain. An example would be where Dell outsources the component assembly in low cost countries, if these areas are impacted by environmental storms or damages, this could be an impact to product deliverables.
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