A Case Study of Dell Supply Chain Management

Topics: Supply chain management, Supply chain, Inventory Pages: 13 (4588 words) Published: May 22, 2012

A Case study of Dell supply chain management

Liu Xingrui
Xiao Ziye
Peng Yunyi
Liu Siqi

Dell’s supply chain is typical paragon among the computer manufacturing industry. The advantage of supply chain lead to a rather strong marketing performance for dell than it ever had been. This paper takes an overview of Dell’s supply chain and strategies used in supply development. Generally, three sections are involved in the analyses which are build-to-customer strategy, direct sale model and IT system. Build-to-customer strategy’s purpose is to give quick responsiveness from supplier to end of users to apply the customer diversification demands. Meanwhile combine with stronger IT system, information is highly sharing without enormous unnecessary intermediaries. Under the great execution of direct to sale model, JIT standard inventory control is obtained and supply efficiency is approved to handle the delivery time limit set Dell. SWOT analyze as the power tool to distinguish a company current situation. The result distinctively shows that despite the advantage of cost, there are still many opportunities as untapped market for Dell to exploit. But no matter how unpredictable the future would be. Right now the consequence is obviously that Dell’s supply chain is very successful and providing both efficiency and flexibility for customers.

1. Background/Introduction 4
2. Methodology 4
3. Theoretical framework 4
4.1 direct sale model 4
4.2 build-to-customer strategy 5
4.3 IT-system 7
4.4 Integrated approaches 8
4. Results/ Finding 9
5. Analysis/ Discussion 10
6. Conclusion 12
7. Reference list13

1. Introduction/Background
Dell was founded in 1984 by Michael Dell. As one of the most successful PC companies in the world, its secrets have been searching for many years, and the main area which researchers and professors concentrate on is the typical supply chain built by Dell. There is no denying that supply chain is developing fast in recent years and an efficient supply chain can contribute to vast competitive advantage for a company. And among the whole supply chain management of Dell, direct sales model and build-to-customer strategy have been regarded as two shining stars. In this article, we will do some in-deep research to analyze Dell's supply chain form an overall perspective with focusing on the two successful models. 2. Purpose

Based on analysis of the whole supply chain management of the Dell, this article concentrates on direct sales strategy, build-to-customer model and comprehensive IT system. What the competitive advantages do they provide for the Dell and how do they interact with each other to make the supply chain more efficient? 3. Methodology

There are some methods are used in our research. First is literature review which is basic knowledge about supply chain management. And analysis the information from the scientific articles to find related resources like bullwhip effect and supplier relationships. What’s more, collecting public data from related resources, mostly from internet website to gain relevant information such as direct sales model, build to customer strategy and IT systems. 4. Theoretical Frameworks

4.1direct sale model
Enhance the efficiency by passing the intermediaries, and face to face with the customers, is the core element of the direct model which is one of the backbones of Dell’s supply chain management with build-to-customer model. Dell uses the direct sale model by selling its PCs direct to the customers through web-site without retail channel. In this way, the time added and costs gained from the intermediaries are...
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