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Overview of dell
Overview of dell
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1. Introduction of Dell lnc. Dell Inc. is a privately owned multinational technological company, which develops, sells repairs and supports computers and relates products and services. Dell Computer has a fully Internet-enabled supply chains, which is constructed by the extranet to automate interactions with suppliers, service partners and customers . Dell has rolled out custom Websites to 30 of its large suppliers, which include Intel for microprocessors, Seagate and Quantum for disk drives, and Sony for monitors. The sites give both Dell and its partners a real-time access to order and manufacture systems, so that replenishment can be tied closely to orders. Dell combined packaged applications from Microsoft and others with its homegrown software. That will help Dell integrate its planning and manufacturing systems with those of suppliers and create a free information flow within their respective core systems. The direct-sales PC pioneer is struggling to maintain customers' loyalty in the face of fierce price competition . Through Dell Marketplace, suppliers and buyers can leverage Dell's e-commerce expertise along with its relationships with strategic Internet infrastructure partners to access goods and services from a wide range of companies, the majority of which are Dell customers 2. Introduction of supply chain management (SCM) 2.1 Definitions Before we start, we would like to briefly introduce the definitions of Supply Chain and Supply Chain Management (SCM). 2.1.1 The definition of Supply Chain According to APICS, The Association for Operation Management’s definition of the Supply Chain: “Supply chain. Product life cycle processes comprising physical, information, financial and knowledge flow or movements whose purpose is to satisfy end-user requirements with physical products and intangible services from multiple, linked suppliers.” In other words, supply chains compose a network of different companies that cooperate closely for goods delivery. 2.1.2 The definition of Supply Chain Management The Council of Supply Chain Management Professionals defines the SCM in this way: “Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all logistic activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third parties service providers and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.’ Based on the definitions given by APICS and CSCMP, we believe that SCM is much broader than the fundamental functions such as manufacturing, distribution and logistics. It can contribute to information flows between organizations and its suppliers to eliminate the bullwhip effect and escalate the productivity and capability inside the firm as well.
Number of Suppliers and their IT capacity: Ford employs a tiered system of suppliers, whereby they order complete systems from the tier one suppliers. The tier one suppliers then manage the relationships with the tier two and tier three suppliers (who supply the parts for the tier one complete systems). Dell 's supplier base relatively small and have solid IT capacity as the vast majority of them are IT organizations. The size and scope of organization is too big and not easy to handle (suppliers, vendors, networks, geography).
When Dell started, they are well known for its innovations in supply chain management and electronic commerce, particularly its direct-sales model and its "build-to-order" or "configure to order" approach, which is their key supply chain strategy, to manufacturing— They took orders through telephone, asking the customer their specification for the product, then, delivering individual PCs according to the customer.
Headquartered in Austin, Texas, Dell is the number 1 PC Company in the world in terms of total sales. In addition to offering a full line of desktops and notebooks designed for consumers, Dell offers network servers, workstations and storage systems. The company also sells handheld computers and it markets third-party software and peripherals. Dell’s growing services unit provides systems integration, support and training.
Dell Inc. is a manufacturer of personal and business computers with a global reach. They are located in Round Rock, Texas and have several manufacturing and customer services sites domestically and globall...
Dell's strengths were oriented around listening to the customers, responding to the customers, and delivering what the customer wanted. The direct relationship was first through telephone calls, then through face-to-face interactions, and now through the internet. It has enabled them to benefit from real-time input from real customers regarding products and future products they would like to see developed. The company also doesn't use reseller or retail channels because every computer is built-to-order, which allows less inventory. The direct model allows them to take the pulse of whatever market and provide the right technology for the right customers.
Dell Computer Corporation was founded in 1984 by then 19 years old Michael Dell. The company designed, manufactured, sold and serviced high performance personal computers (PCs) compatible with industry standards. At the first time, Dell the company purchased IBM compatible personal computers, upgrades them, and then sold the upgraded PCs directly to businesses by mail order. And then Dell began to market and sells its own brand personal computer, taking orders over a toll free telephone line, and shipping directly to customers.
Dell is one of the renowned companies in the world. If someone is asked to name the companies, which sell computers, he/she will definitely include the name of Dell (Martin 2002). In fact, it is widely accepted brand in the world. However, with the arrival of rival companies, post 2007, for Dell, it was testing to stay alive in the race in the computer industry. Dell in effect is acknowledged by some experts as one of the vulnerable brands. Hence, it would be preemptive for the corporation to continue to exist in the contest, where big companies, such as Apple and Acer have dominated the market by this
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
Dell Computers Strategy Global companies play an important role in the business environment, because they connect their businesses together around the world. A good example of a global company is Dell Inc., an American computer-hardware company, headquartered in Austin Texas, which develops, manufactures, sells and supports a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and more. They design, build and customize products and services to satisfy a range of customer requirements: from the server, storage and Premier Services needs of the largest global corporations, to those of consumers at home. According to the Fortune 500 2006 list, Dell ranks as the 25th-largest company in the United States by revenue.
Dell made the bold decision in 1994 to eliminate their products from retail stores and focused on mail order customers. In 1996 Dell began selling through their website as well. By eliminating the retail store presence Dell was able to reduce costs, reduce inventory, and maximize profit. Dell utilized a built to order system that allowed customers to specify exactly what they did and did not want on their Dell computer. Dell's just in time inventory system lowered inventory to 6 days and storage costs were saved.
New online manufacturer brand e.g. Dell.com - Entrepreneurs saw opportunities for developing online manufacturers' brands that took advantage of online technologies that enabled innovative new products to be adapted to customer preferences, and by using IT to enable efficient and effective operations such as assembly and logistics.
After six strong years of online sales -- widely regarded by analysts as stumble free -- Dell has racked up some impressive statistics. In the last quarter of 2002, Dell.com logged a billion page views, a company first. According to Dell spokesperson Bob Kaufman, about half of the company's revenue comes from the site, which means approximately $16 billion flowed through Dell.
Historically, personal computer companies produced most of the components for a computer which they assembled into their final products and distributed to resellers. The manufacturing of these components was vertically integrated into the organisation. Dell, as a small start-up, could not build this infrastructure. Instead, they developed a model where they developed relationships with organisations that could provide these components, allowing Dell to focus on selling and delivering computers. By selling directly to customers, initially through mail orders and later by using the internet, Dell avoided reseller mark-up. Dell also enabled customers to order customised computers, which Dell then assembled after receiving the order (Magretta, 1998, p.73-74). “Customers got exactly the computer they wanted and Dell saved money making the computers only when they were ordered” (Hill & Seggewiss, 2008)....
Supply chain: It is taken to mean the flow of goods that are required for raw materials to be transformed into finished products. Supply chain management entails making the chain as efficient as possible through better flow scheduling and resource use, improving quality control throughout the chain, reducing the risk associated with food safety and contamination, and decreasing the agricultural industry’s response to changes in consumer demand for food attributes (Dunne, 2001).
Dell’s initial competitive strategy, when it was founded in 1984 by Michael Dell, was to focus mainly on differentiation. Its strategy was to sell customised personal computer systems directly to customers, which was a rapidly emerging market at that time (1). This was done by targeting second-time customers, those that already understand computers and know what they wanted. Meanwhile other companies at the time was selling “’plain brown wrapper’ computers” (2). By offering customisations, Dell gained a better understanding of customers’ needs and wants. This helped the organisation position itself differently against the more popular brands, such as Compaq and IBM.