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Effects of Inventory Management on the Supply chain of Dell

Effects of Inventory Management on the Supply chain of Dell

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Published by Arjun Thekadavan

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Categories:Types, Research
Published by: Arjun Thekadavan on Apr 01, 2012
Copyright:Attribution Non-commercial

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09/24/2013

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1
Abstract
 
Keywords:
Inventory management, Supply Chain management, competitive advantage.
Purpose:
This research examines the effects and significance of inventory management onthe supply chain and how it helps in the organisational success.
Background:
This research seeks to concentrate on the effects of inventory managementon the supply chain management of one of the top personal computer manufacturers in theworld, Dell computers. Supply chain management is a major issue in many industries asfirms realize the importance of creating an integrated relationship with their suppliers andcustomers. The competitiveness of international companies is highly dependent on theirability to deliver products quickly and timely all over the world. This paper analyses variousissues important to inventory and supply chain management and provides broaderawareness of supply chain principles and concepts. Four research objectives are served tohelp the research. These objectives were to analyse the impact of inventory management onthe supply chain management and the competitive advantage they are having with supplychain and inventory management. The research also analysed the various processesassociated with the supply chain of Dell computers and then recommendations forimprovement. Also in doing so it is intended that the lessons learned from the studiespresented will be summarized and placed into the perspective of future research that can beconsidered as necessary.
Methodology:
This research adopted an exploratory, qualitative approach because of the
nature of the research itself and the researcher‟s interest towards business and
management research. Different sources like previous case studies, individual experiences,observations, interview etc were used in this research. An inductive approach was employedin this research that included a case study approach that included data collection with thehelp of semi structured interviews with the managers, observations, online resources, books,and journal articles.
Findings:
From the findings it was clearly revealed that there is a possibility of continuousimprovement opportunity which would result in a sustainable competitive advantage for theorganisation. This research helps both academics and managers to gain a betterunderstanding of the complexity of supply chain and inventory management.
 
2
LIST OF FIGURES
Figure 2.1
Direct and Extended Supply Chain
Figure 2.2
Dell‟s Di
rect Distribution Channel
 Figure 2.3
Dell‟s Supply Chain
 Figure 2.4
Just-In-Time Models
 Figure 3.1
Research Process Diagram
 
3
Table of contents
Title Page no
 
Abstract...................................................................................................................... 1Acknowledgements...................................................................................................... 2List of Figures............................................................................................................. 3Chapter 1: Introduction ......................................................................................... 7
1.1 Background ......................................................................................................... 71.2 Research Aims........................................................................................................ 91.3 Research Objectives .............................................................................................. 91.4 Scope of The Research........................................................................................... 91.5 Company Profile....................................................................................................... 91.6 Dissertation Layout................................................................................................ 101.7 Chapter Summary................................................................................................... 11
Chapter 2: Literature Review ................................................................................. 12
2.1 Introduction.......................................................................................................... 122.2 Supply Chain Management (SCM)...................................................................... 122.2.1 Importance of SCM .............................................................................. 142.3 Inventory Management...... .................................................................................. 152.3.1 Effects of Inventory Management on Supply Chain................................. 172.3.2 Effectiveness of Inventory Management Processes inManufacturing Industries.............. ................................................................192.4 Competitive Advantage ................ ..................................................................... 202.4.1 Supply Chain as a Competitive Advantage............................................. 212.4.2 Inventory Management as a Competitive Advantage............................. 222.5
Dell‟s Supply Chain and Inventory Managemen
t................. ................................ 232.5.1 Direct Sales Model................................................................................... 232.5.2 Build To Order.......................................................................................... 242.5.3 Supply Chain and Inventory Management Processes............................. 252.5.4 Just In Time Model........................................................................................27
2.5.5 Effects of Inventory Management on Dell‟s Supply Chain.............................28
 2.6 Competitive Advantage Of Dell.................................................................................29

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