SUPPLY CHAIN MANAGEMENT
This case study is based on the supply chain management of two notable PC manufacturing MNCs, Hewlett-Packard and Dell. The objective of this case study is to compare the effectiveness of the standardized process followed by HP to the innovative process of Dell, The Direct Model.
A comparative case study was done between two electronics giants Hewlett-Packard (HP) and Dell.inc, on their supply chain management. HP was taken first as a base for their effectiveness in supply chain management as can be seen by their success throughout the years. They have continuously refined the process repeatedly until they could finely tune the entire process to suit the needs of the customer as well as to not pose a hindrance to product demand forecasting, which enabled them to grow from a simple 500$ investment to a multi-billion dollar MNC we see today.
Then, Dell’s innovative addition to the management process, namely the “Direct Model” was taken into study and its effectiveness in the field was analysed, both positive and negative. The Direct model aimed at personalizing the entire placing-order process so as to cut off the extra processes required in between the supply chain. This helps in maximizing the profits for the company. Virtual Integration is the side-by evolution of the Direct model, which allows more power and options to the customer. The customer can now personalize the configurations for his order of PCs, starting from the screen type and make to the specific details required for graphics processing and motherboard chipsets. This flexibility of choice has allowed Dell to become much more preferred in the computer industry by customers as compared to already existing electronics companies, which prefer selling standardized products that were made by the companies demand forecast and studies.
Though, as with every innovation, there are also disadvantages posed by the Direct model that sets back Dell in certain fields and processes as compared to the supply chain management of HP. All severe and important threats to the field have been analysed and put forth in this case study.
An interview with representatives from both HP and Dell was conducted regarding the supply chain and the information provided by them was presented in the report. A questionnaire was prepared and the representatives were interviewed in their respective offices. The questionnaire is also produced in the report.
This report is one of hard work and dedication. Along the course of this project we have learnt the value of team spirit and how to work hand in hand with people who share a common goal.
First of all, we would like to thank our associative Dean Prof. S.G.Rakesh for providing us with all required facilities essential for the completion of this project. We would like to thank our lecturer from the department of English Ms G.S. Jyothsna and Dr.Sukhanya Saha for their constant support and guidance, without whom the project would never have reached its stage of perfection. We sincerely wish to thank everyone who has helped us in this venture. This project is the result of team work and co-operation provided by teammates, friends, family and the guidance of all our lecturers.
We also like to thank Mr. Siddharth Sreekumar from Dell for guiding us and parting knowledge about the new idea that Dell is come up with.
We also thank Mr. Subbu T of the Supply Chain Group of HP for letting us know the structure and working of the Supply Chain Group.
TABLE OF CONTENTS
TABLE OF CONTENTSvi
1.1 HEWLETT-PACKARD COMPANY (HP)2
2. SUPPLY CHAIN MANAGEMENT5