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By | December 2011
Page 1 of 4
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ManagingOperations

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) Dell's Value Ghain
supencourages Dell Computer,with close supplier relationships, pliers to focus on their inEividual technologicalcapabilitiesto susResearch and development tain leadershipin their components. costs are too high and technologicalchangesare too rapid for any one company to sustainleadershipin every component.Suppliers are also pressedto drive down lead times, lot sizes,and inventories. that and customer-focused ieverages Dell, in turn, keepsits research special Dell also constructs to research help itself and suppliers. Web pagesfor suppliers,allowing them to view ordersfor components they produce as well as current lcvels of inventory at Dell. This allows supplicrsto plan basedon actualend customerdemand; as a result,it rcducesthe bullwhip effect.The intent is to work with suppliersto keep the supply chain moving rapidly,productscurrent, and thc customerordcr queueshort. Then, with suppliercollaboration, Dell can offer the latest options, can build-to-order,and can achieverapid throughput. The payoff is a competitive advantage, growing market share,and low capital investment. primarily via the On the distributionside,Dell usesdirect sales, Intemet, to increascrevenuesby offering a virtually unlimited variety products.Options displayed and enterprise notebooks, of desktops, over the Internet allow Dell to attractcustomersthat value choice. or productconfigurations customize selectrecommended Customers them. Dcll's customersplace orders at any time of the day from anywhere in the world. And Dell's price is cheaper;retail storeshave of additionalcosts because their brick-and-mortarmodel. Dell has to customers also customizedWeb pagesthat enablelarge business with their purchase and place ordersconsistent track pastpurchases history and current needs.Assembly begins immediately after receipt of a customerorder. Competing firms have previously assembled (including shelves retailat...