dell supply chain management 1234495672532518 2
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SUPPLY CHAIN MANAGEMENT SYSTEM
By : HIMANSHU MALHOTRA
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OBJECTIVES
To examine and analyse Dells Direct model, itsbasic working, & success.
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SUPPLY CHAIN MANAGEMENT
Supply Chain Management is the integration ofkey business processes across the supply chainfor the purpose of creating value for customersand stakeholders
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History
Started in Michael Dellsdorm room at the Universityof Texas in 1984
Grossed $75 million in salesin 1985
Ranks 2nd in computer sales
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Michael Dell
College dropout
Changed how computers
were sold
Started his business with
$1000 in capital
Now worth $17.3 billion
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How do they do it?
Dells success is a combination of:
Direct Sales
Build-to-order
Supplier Integration
Together these allow for maximumeffectiveness with minimum cost
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Direct Sales
A direct sales system allowsDell to:
Cut costs
Build relationships with
its customers
Deliver exactly what thecustomer wants
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Build-to-order
A build to order system allowsDell to:
Increase inventory velocity
Minimize inventory costs
Build exactly the computer
that its customers want
Minimize the need forforecasting
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Supplier Integration
Supplier integration allowsDell to maximize thebenefit of its other core
competencies
Here is how they do it:
Location of supplierwarehouses
Extranet
Meetings with suppliers
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Conclusion
The secret to Dells success is the synergybetween all of its competencies
And Dells focus on collaboration at every level.
A great supply chain strategy, linked withoperational excellence, can provide success fornot only the company in question but also its
partners and customers.
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