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Final exam supply chain management quizlet
Final exam supply chain management quizlet
Designing and Managing the Supply Chain chapter 1
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Supply chain simulation learning report
Supply chain management is an integrated approach to planning, implementing and controlling the flow of information, materials and services from the raw materials and suppliers for the manufacture of the completed or finished product for the distribution to the customer.
He we see about supply and demand which is the back bone of any market economy. Demand refers to how much of products are demanded by the customers. When demand increases in turn the price of the product rises. Supply refers to how much the market can supply/offer. Price is the reflection of supply or demand.
DELL – supply chain
Supply chain process used by Dell has been considered as the best practice in the world. DELL has the different model of supply chain process when compared to its competitors which is called direct model. In this model DELL supplies the PC s to the direct customers without the support of retail channel.
Dell’s Direct Distribution.
SUPPLIERS - DELL - FINAL CUSTOMER
Therefore this direct distribution channel creates the direct relationship with each individual. The unique feature of Dell’s supply chain is build- to order strategy. Which enables the customer to place an order, all the configurations details are send to the manufacturer. And once the assembly is done the PC s are directly shipped to the customer using 3PL. It is also clearly seen that customers are pays for an order before the Dell pays to the suppliers for the products.
The role of IT in supply chain
Recently in an article Information systems research it is stated that supply chain management is seen...
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... has lot of wastes such as overproduction, waiting, transportation and inventory in push process. In pull process the main waste is defects.
Is 4 teams necessary in the work cell process?
Mainly resources are biggest waste in this process. And non-utilizing talent and the system was also unlevelled
Final round was a levelled process where it has already been discussed by the team. Every individual’s skills is used in this round.
What did I learn?
This simulation game was quite fast and challenging for each and every individual which resulted in stress management, team building and managerial techniques in work places. This simulation game also gave clear idea about supply chain management and how to react for the market situations and customer demand. The causes of overproduction and how to use the resources, employee’s skills in a right way.
... thing while being in the right time on the right place. Everything else is the history. Many stories were told about Dell. Dell was most famous for its customized products which they sold directly to customers. This strategy worked for some period, however to capture bigger market share Dell had to return to the retailers. Michael Dell is one of the biggest asset Dell has. His enthusiasm and hard work build a multibillion dollar company. He has promising outlook for the IT market and always make strategic decisions. Therefore Dell at the beginning made strategic decision to sell in the stores to capture market share, then they decided to sell directly to customers to avoid retailer margins, however, at the end they returned to retailers to capture market share again. Although these strategies contrasted each other, they were right strategies for the right time.
1) Describe and analyze Dell's process strategy (management philosophy, efficiencies, bottlenecks, supply chain partners, etc.). What's the advantage and disadvantage of their process model?
The brand “Dell? which serves various consumer segments, is efficiently delivering attributes such as good quality computers along with operative support services. Dell takes position in direct communication with customers and delivers build-to-order computers. The value created by using the direct model to sell customized products and by providing on-site service ranked Dell between market leaders IMB, Compaq, HP. It represents good performance machines at a reasonable price as well as unique and distinctive “Direct Model? while targeting corporate, medium and small sized businesses and home office consumers.
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.
Speaking about the business model of Dell, it has ability to remain on the higher end of the scale for a particular time period. Dell has business model, which primarily focuses on direct selling line of attack. It in a straight line supplies the PCs to the regulars. It does not believe in intermediary, retailers for the business practices. Undeniably, this gives them an edge to serve customer well. Nevertheless, it understood the importance of retailers and start offering products on the premises of retailers, such as Wal-Mart, Sam’s Club and so on. Next, Dell administration is certain of the exclusive business of PCs. As time goes on, however, observing the
Spanning over 20 years, the company has always been associated with designing, manufacturing and customizing products and services to satisfy a diversified range of customers including individual customers to corporate and retailing businesses. The company's philosophy to deal with customers one-on-one has become a management model for other companies. Having gained the market leadership position in computer products and services, Dell's team have always been careful in sustaining its marketing strategy of providing standard-based computing solutions (Official Website 2004).
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.
The flow of materials from suppliers into Dell starts by the company putting in orders to factories that are based on two categories. These two categories are product type and geography.
Dell Inc. has realized that the most efficient path to the customer is through a direct relationship, with no intermediaries to add confusion and cost. With the power of their direct model and their team of talented people, they are able to provide to their customers high-quality, relevant technology, customized systems, superior service and support and products and services that are easy to buy and use.
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.
This strategy was carried out by selling via phone, fax and direct sales, instead of selling through retail stores. Not only this approach differentiated Dell from other competitors at the time, it also reduced its operating costs as it did not have to rent expensive retail space. In addition, Dell’s strategy of selling customised computers allowed it to hold only a small amount of inventory, which reduce...
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Since its launch in the mid '90s, Dell's e-commerce business has been a poster child for the benefits of online sales, says Aberdeen Group analyst Kent Allen. The company's strategy of selling over the Internet -- with no retail outlets and no middleman -- has been as discussed, admired and imitated as any e-commerce model. Dell's online sales channel has proven so successful, says Allen that the computer industry must ask: "Does the consumer need to go to the store to buy a PC anymore?"
Dell Inc had very effectively used the direct marketing channel for the sales of computers to the end consumer. When all the other pc makers were selling through retailers and distributors, Dell had started efficient use of the direct channels.
Dell Computer have recently announced changes to their business strategy and supporting supply chain. They will no longer focus on a made to order direct sales model for their personal computers. Nor will they continue to refine their renowned supply chain model that supported their sales model. Instead, they will be looking to produce personal computers with fixed configurations at lower prices. This essay looks at why Dell have changed their strategy, and then considers the customer value proposition of the new strategy, as well as lessons that other organisations can learn from the Dell experience.