Presented By:Chetan Kolhe Gaurav Rane Siddhi Wagh Deepak Yadav

M3123 M3142 M3155 M3157

Roadmap
Introduction To Dell Direct Model Valuable Web Model Service Chain Management I2 Technology RFID Lean Inventory Model Business to Business Planning Customer Relation Management

Dell at a Glance
1984 - Founded by Michael Dell
Hardware Design Manufacturing Distribution

1987 - First Computer Systems Company

On-site product service .

2012 - Globally 2nd Market Share of Around 16%. Greater than $ 50 Million sales per day through the internet Yearly revenue of more than US$ 63.07 Billion With employee base of 1,13,300 Ventured
In areas of storage products, Workstation systems, Online technical support, Appliance servers, Network switches, Standards based point of sale offering for retail customers, Recycling .

Shipped more than 10 million systems in a single quarter.

DELLs Direct Model

Indirect PC Value Chain

Suppliers

PC Maker

Distributer

Retailer, Resellers, Integrators

Final Customer

Suppliers

DELL

Final Customer

Direct PC Value Chain : DELL Hardware Delivery System

DELLs Value Web Model

CMs/OEMs Logistics System Integrators

Physical Flow (Product & Services)

Information Flow Component Suppliers DELL Final Customer

3rd Party HW & SW Supplies

Distributer

Repair & Support Companies

Why SCM is so Important In PC business

Material Cost A/C = 74% i.e. near about $ 21 billion
Improvement In SCM 0.1 % Impact On Manufacturing Process 10 %

Change In Technology

Obsoletes Materials 1 % Per Week

Technological breakthroughs cause very short PLC

Dells Competitive Advantages

Dell is having one of the best SCM in the world. 90% supplies ordered online using integrated websites of supplier and Dell (B2B) 95% of suppliers situated very close to assembly plant hence coordination is easier. Dells factories have only 7 hrs worth of inventory for most items whereas industry wise it is around 10 days. 15 suppliers provide almost 85% of all supplies. Dell gets paid by customers and then pays to its suppliers.

Dells Chose i2 (SCM) Software Package

Dell chose i2 Technologies for its SCM system. i2 serves almost 70% of the SCM market. At every 20 sec the
Software aggregates orders Analyzes material requirements Compares Dells on-hand inventory with its suppliers inventory

Creates a supplier bill of material to meet its order needs .

Instead of forecasting the daily supply needed

Dell receives the exact material every two hours to fulfill actual customer orders.

i2 Technology
i2 technologies software enables Dell to monitor the supply position of every part On a high level, the supply chain process is comprised of two steps:

Planning Which involves getting the needed materials positioned at SLCs near the appropriate Dell factories. Execution Which involves having the right materials on and at the factory to build each customers order.

Delivering High Performance Storage

2 Global Centers
72 Dell Power Edge 6650 servers. Dell uses Oracle 9i Database with Real Application Clusters (RAC) Red Hat Linux Advanced OS 5 million transactions a day Dell uses Dell / EMC Fibre Channel SAN (Storage Area Network) This helps: Store and retrieve critical information. Helps it scale easily and thus enabling it to accommodate any increase in storage system.

Dells Factory Planner Solution

Manages 250 suppliers For handling 4000 components Calculates schedules. Estimates surplus parts in the factory Check supplier inventory. Places orders, which are delivered within 90 minutes

RFID
Tags
Radio Frequency Identification Devices. RFID is a 3 part technology consisting of: A reader A receiver with decoder A Transponder

Readers

Local Software & Infrastructure

Enterprise Integration

ERP

CMs/OEMs

SCM LOCAL SERVER

RFID
RFID at Dell - Manufacturing
Tracking code and Computer assembly instructions are added to the tray. This determines the specific line to which the tray should go to. At every stage of the assembly, the tags are read by the antenna for specific instructions. RFID at Dell - Shipping Once assembled and tested, production information is inserted into the tags and sent to a shipping station. At the shipping station, the RFID tag transfers data to the control PC. This control PC uses this information to print the appropriate label. Benefits of RFID Production stops have reduced dramatically. Labor can be allocated by minimizing repetitive activities. Returns due to wrong shipping of products have been minimized.

DELLs SCM Management

SUPPLIERS
Customer places an Order
(By phone or through the Internet on www.dell.com)

REVOLVERS

Dell processes the order

2-3 days

Sends the order to assembly plant

(any one in Austin, or any other)

Plants build, test & package the product

(about eight hours)

Through Configuration evaluations

(checking the feasibility of a specific technical configuration)

Financial evaluation
Credit Checking

Dell typically ship all orders

(no later than five days after receipt)

CUSTOMERS

FIFO

Major Instruments For Inventory Model

Revolver

Build-To-Order Model

Value Chain Program

or SLCs (Supplier Logistics Centers)

Revolvers (for revolving inventory)

Supplier Manufacturing

Material Transfer
(SLC) Warehouse

Factory / Merge Center

Lean Inventory Model

3 days of inventory - Inventory turns of 122 per year
Suppliers
Revolvers (SLCs) Dell Factory

Delivery

Local Suppliers

Customer

Supplier Owned

Dell Owned

B2B Model
Business model for dealing with large business entities. Server- to- server communication over internet integrating both supplier & buyer system. Shopping online with customers ERP Procurement Application with simultaneous up gradation. No duplicate information entry. OBJECTIVES
Easy process, Less cycle time Less errors To quickly integrate customers who are capable today.

Rapid deployment & connectivity.

Providing hardware, software & consultation to help build a system which not only connects to Dell but even to other suppliers.

CRM in DELL
Dell maintains special DB of its top 50 global customer.
Maintains a Global Data Repository for all of its customer. Uses DB compiled by Dun & Bradstreet for 500 global companies for selectively targeting sales efforts .

Real Time CRM When a customer calls in for placing order then customer service links directly to Dells Real Time inventory . Depending on latest inventory data Dell can : Push Available inventory at lower cost. Promote latest/new products at higher cost.

Provide add-on products with discounts .

Suppliers Selection And Evaluation

SELECTION i. ii. iii. iv. EVALUATION 1. 2. 3. 4. 5. Quality Price Delivery Response to feedback.

Cost Delivery Availability of technology Velocity of inventory Ways in which they did business with dell over the internet.

MIS In DELL
Direct Model Valuable Web Model Service Chain Management I2 Technology RFID Lean Inventory Model Business to Business Planning Customer Relation Management

THANK YOU.