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Dell Supply Chain Management

Presented By :Prashant Mishra kashyap joshi

manufactures.Introduction • Dell was founded in 1984 by Michael Dell. and supports personal computers and other computer-related products. . sells. • Dell is a multinational technology corporation that develops. • Dell grew during the 1980s and 1990s to become the largest seller of PCs and servers • As of 2010 it held the third spot in computer-sales within the industry behind HP & Acer. • Dell employs more than 82.700 people worldwide.

Brazil. Penang. Dell sells its products and services worldwide. • Dell is a trusted and diversified information-technology supplier and partner.Countd…. Malaysia. . and Xiamen. and sells a comprehensive portfolio of products and services directly to customers worldwide. • Dell's Direct Model is built on the principle that by selling computer systems directly to customers. Limerick. Ireland. • Dell manufactures its computer systems at six locations: Central Texas and Middle Tennessee in the United States: Eldorado do Sul. China.

Inventory Accounts Payable .SUPPLY CHAIN SYSTEM Configuration Management. Procurement. Cost.

SUPPLY CHAIN MANAGEMENT • Dell's supply chain consists of only three stages— the suppliers. • Dell’s strategy is to provide customized. the manufacturer (Dell). • Dell matches supply and demand because its customers order computer configurations over the phone or online (Internet). • Dell reduces the cost of intermediaries that would otherwise add up to the total cost of PC for the customer. low cost. and quality computers that are delivered on time. and end users. • Another advantage Dell gets by directly dealing with the customer is that it is able to get the customers requirements regarding software to be loaded. . These computer configurations are built up from components that are available.

Direct Model .

Balancing Demand and Supply  Dell maintained a database to track the purchasing patterns of corporate customers and their budget cycles. Dell was able to forecast demand with 75% accuracy.  It also maintained a similar database for individual customers in order to cater to their future requirements for PCs. .  Through its forecasting techniques. in order to forecast demand.

medium businesses. large businesses and public sector customers like Government departments. . etc. notebooks. e-mail.dell. small businesses. printers. educational institutions and healthcare institutions.Production Process • Dell received orders via the telephone. home office customers. servers. Customers could use Dell's website www. • Customers could choose from a variety of products ranging from desktops. the choices available for the consumers also widened. • The website catered to different segments of customers like individuals. to configure their customized computer and place an order for it. etc. • With advancement in technologies.com. Orders were received by business units. Internet. which downloaded the orders every 15 minutes.

holding a significant amount of inventory did not prove to be an advantage.  As Dell did not hold large inventory of finished products. it did not have to sell technologically obsolete products at a discount. . compared to 8.5 times at HP and 17.Benefits  Dell maintained nearly zero inventories for some of its components.5% a week.5 times in IBM. With the value of inventory declining rapidly at an average of 0. the inventory turnover rate in Dell was at 107 times a year.  In 2004.  Dell was able to bring in new products according to the needs of the customers into the market faster than its competitors.