Dell, Inc. Case Study

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.