Dell Jit

Only available on StudyMode
  • Download(s) : 86
  • Published : March 24, 2013
Open Document
Text Preview
Dell – Supply Chain Management
Case Study 1
Case Contents
1. Introduction......................................................................................................2 2. Dell – Company Overview ...............................................................................2 3. Dell Products and Services .............................................................................3 4. Dell – Key Facts ..............................................................................................4 5. Dell Timeline....................................................................................................5 6. Dell – Business Segment Information..............................................................6 7. Dell’s Evolving Supply Chain Strategy.............................................................7 7.1. Typical Working of Dell’s Supply Chain ..................................................7 7.2. Five key strategies in Dell’s successful Direct Model .............................7 7.3. A supply chain with old technology is of little value ................................8 8. Restructuring at Dell ........................................................................................8 8.1. New Distribution Channels – Direct Model and Retail Strategy ..............8 9.

Integrating the Supply Chain ......................................................................9

This case study covers the following issues:
1. Examine and analyze Dell’s Direct model, its basic working, success and future challenges
2. Typical Working of Dell’s Supply Chain and future supply chain challenges 3. Highlights Dell’s evolving Supply Chain practices and strategy and steps being taken by it to recapture its lost market leader position

Case Study Keywords: Dell, Direct model, Supply Chain Management, Supply Chain Strategies, Build-to-order model, Inventory optimization, PC Manufacturing, Retail Distribution Channel, HP, Notebook computers, Desktop personal computers, Competitive Business Strategies, Sustaining competitive advantage, Michael Dell

1
Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. Accuracy of information cannot be guaranteed. Please do not copy without permission. © casestudyinc.com 2008

1. Introduction
“Dell thinks about their offerings as microprocessors, disk drives and frames-per-second graphics. But consumers just want a computer they can be proud of when they show it to their friends, listen to music, watch videos and do office work”

-

Christian Terwiesch, a Wharton professor

Dell has been following its unique ‘direct build-to-order’ sales model for more than 20 years. Customers can plan their own configuration and place orders directly with the company via the phone or its Web site. Over the years, Dell’s supply chain efficiencies and direct sales gave it a competitive advantage. In 2006 however, Dell faced several problems. Many customers complained about long delays in supplies. Recall of Sony battery cells in its laptops brought undesirable media hype to the company. Increasing discontent of customers led to a slowdown in sales. Consequently, Dell lost its market leadership to HewlettPackard Co. (HP). Industry analysts felt that, with Dell's competitors also improving their supply chains and matching Dell's direct model, the company had been losing its competitive edge. Dell will have to bear additional costs with its foray into retail distribution thereby minimizing its cost advantage. Besides, profit margins of Dell will drop further since it will have to offer incentives to compete with HP in retail stores. Though Dell spruced up its product design and range but Apple is clearly far ahead of it. Many experts feel that such new initiatives will only distract Dell from its supply chain operations.

2. Dell – Company Overview
Dell is a leading technology company, offering a wide range of...
tracking img