Dell(Supply Chain)

Topics: Supply chain management, Supply chain, Marketing Pages: 6 (2116 words) Published: August 18, 2013
1| Introduction| 4|
2| Pull model of supply chain at dell| 5|
3| Procurement practices at dell.| 6|
4| Improving logistics & purchase practices in an organization| 7| 5| Effective usages of it at dell.| 8|
6| Air transportation at dell| 9|
7| Conclusion| 11|
8| Reference| 12|


Dell is also committed to a culture of environmental sustainability and responsibility. They continually reduce Dell's impact on the environment through product design, manufacturing and operations, product ownership experience, and product end-of-life solutions. And Dell believes that their work on sustainable business practices is a journey without end. Dell is committed to building value not only for their customers and their business, but also for the communities that the company and its employees call home. They strive to participate responsibly in the global marketplace in which they operate. Finally, they understand that as a company with an extensive global supply chain, they have a responsibility to work with their suppliers to promote high standards of behavior, including sustainable environmental practices, the health and safety of people and fundamental human rights and dignity.

Q.1. How ‘Pull model’ of supply chain, became a game changer for Dell? Demand forecasts form the basis of all supply chain planning. All push processes in the supply chain are performed in anticipation of customer demand, whereas all pull processes are performed in response to customer demand. For push processes, a manager must plan the level of activity, be it production, transportation, or any other planned activity. For pull processes, a manager must plan the level of available capacity and inventory but not the actual amount to be executed. In both instances, the first step a manager must take is to forecast what customer demand will be. Dell orders PC components in anticipation of customer orders, whereas it performs assembly in response to customer orders. Dell uses a forecast of future demand to determine the quantity of components to have on hand (a push process) and to determine the capacity needed in its plants (for pull production). Farther up the supply chain, Dell also needs forecasts to determine its own production and inventory levels. Dell suppliers also need forecasts for the same reason. When each stage in the supply chain makes its own separate forecast, these forecasts are often very different. The result is a mismatch between supply and demand. When all stages of a supply chain work together to produce a collaborative forecast, it tends to be much more accurate. The resulting forecast accuracy enables supply chains to be both more responsive and more efficient in serving their customers. Leaders in many supply chains, from PC manufacturers to packaged-goods retailers, have improved their ability to match supply and demand by moving toward collaborative forecasting. The business terms push and pull originated in logistic and SCM but are also widely used in marketing. Dell is an example of a company that uses the push vs. pull strategy. A push–pull system in business describes the movement of a product or information between two subjects. On markets the consumers usually "pull" the goods or information they demand for their needs, while the officers or suppliers "pushes" them toward the consumers. In logistic chains or supply chains the stages are operating normally both in push- and pull-manner. Push production is based on forecast demand and pull production is based on actual or consumed demand. The interface between these stages is called the push–pull boundary or decoupling point.

Pull strategy
In a marketing "pull" system, the consumer requests the product and "pulls" it through the delivery channel. An example of this is the manufacturing company Dell. Dell only produces computer and parts when they have been ordered by the...
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