dell supply chain management
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Started in Michael Dell’s dorm room at the University of Texas in 1984
Grossed $75 million in sales in 1985
Made the Fortune 500 in 1992
Ranks 2nd in computer sales
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College dropout
Changed how computers were sold
Started his business with $1000 in capital
Now worth $17.3 billion
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Dell’s success is a combination of:
Direct Sales
Build-to-order
Supplier Integration
Together these allow for maximum effectiveness with minimum cost
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A direct sales system allows Dell to:
Cut costs
Build relationships with its customers
Deliver exactly what the customer wants
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A build to order system allows Dell to:Increase inventory velocity
Minimize inventory costs
Build exactly the computer that its customers want
Minimize the need for forecasting
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Supplier integration allows Dell to maximize the benefit of its other core competencies
Here is how they do it:Location of supplier warehousesExtranetMeetings with suppliers
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The secret to Dell’s success is the synergy between all of its competencies
The direct sales system both enables and relies on the build-to-order system
The build to order system both enables and relies on the supplier integration system
And Dell’s focus on collaboration at every level enables it all
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Manataki, Areti: A Knowledge-Based Analysis and Modelling of Dell’s Supply Chain Strategies
Dave Jaffe and Todd Muirhead: Implementation Study: Dell IT Scales Supply Chain Management with Oracle 10g RAC
Dell Case Study - http://www.oppapers.com/print/Dell-Case-Study/84223
Dell ERP - http://www.oppapers.com/print/Dell-Erp/74191 11/5/2008
You Zeng: Learning from Dell - the faithful implementer of 'Just in Time'
Dell on Wikipedia - http://en.wikipedia.org/wiki/dell
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