Dell Inventory Management

Dell's business strategy combines its direct customer model with a highly efficient manufacturing and supply chain management organization and an emphasis on standards-based technologies. This strategy enables Dell to provide customers with superior value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use.

Since the beginning Dell has been selling customized computers. In 1988 Dell became a public company, turning the company more profitable by acquiring new investors. From 1990 to 1993, Dell used to sell computers in retail stores such as Wall Mart, Best Buy, Staples, etc. and because of low profit as results, in 1994, the company refocused its strategy to direct sales, eliminating retailers, wholesalers and consequently acquired satisfied customers by reducing cost and time for them and also the company. In 1997 the company became the low cost leader in pc vendors. During 2002-2007 the company had 7 elements as its strategy: making build-to-order manufacturing progressively more cost-efficient; partnering closely with suppliers to reduce cost of the supply chain; using direct sales techniques to gain customers; expanding into additional products and services and technical support; keeping R&D and engineering activities focused on better meeting the needs of customers, and using standardized technologies in all product offerings. As a conclusion, Dell has been always changing its strategy according to customer needs and in a way to make the company more profitable.

Dell’s business processes are mainly customer focused and are not determined by what managers and staff is willing to provide. They address the zero-value-gap principle by providing the customer with the product that they desire, consistently, by only building products when they are requested by the customer. The build-to-order philosophy enabled the company to build customer value with a quick

Supply chain is starting point before transforming product to customer. Supply Chain Management (SCM) as defined by Tom McGuffog is "Maximizing added value and reducing total cost across the entire trading process through focusing on speed and certainty of response to the market." Supply Chain Management has allowed company to rethink their entire operation and restructure it so that they can focus on its core competencies and outsource processes that are not within the core competencies of the company.

The direct supply chain model that Dell has been using for many years to sell customized PC’s to customers via the internet has been very successful. Dell designed and structured the supply chain to provide customized computers in a quick manner and with a reasonable price. Customers can visit the Dell website and configure the PC they desired and see the cost options they selected. Once the order was finalized, Dell would then start the building of that customized computer to meet the customer’s selection and ship the finished product directly from the manufacturing

Dell uses a push-pull strategy. It produces computers by using components after a customer order. Dell’s model is called a Direct model where suppliers deliver to Dell and Dell is directly in relationship with the customer without distributors and/or retailers. The customer is in the beginning (specific order) and at the end of the process. Suppliers are situated very close to the plant which results in a easy coordination. There are few suppliers and it saves money through shipping directly to customers. Next to specific components, Dell also uses some components through all orders. Each order consists of a motherboard for example.

Third, Dell has a rapid-response system for linking all suppliers, workers, managers, and customers to Dell’s value chain. This interactive real time communication system is employed to order parts, manufacture and outsource computer modules, and coordinate assembly and distribution of products to customers. Managers employ this system for all human resource functions, workers and suppliers for all coordination sequencing and quality control processes,

As demand for IBM’s PC exploded, other firms began to offer “IBM clones.” Compaq entered the

The other hand that makes dells supply chain special is the build-to-order strategy. According to this once the door is set by the customer, all the configuration details are sent to the manufacturing floor and then the assembly of the PC starts. Once the computer is formed and all the software’s are downloaded it will be shipped to the customer by using 3PL.

The business model of dell which concentrates on a built to order framework where the middleman is removed and PCs are sold directly to the end buyer

What is Supply Chain Management (SCM)? Supply Chain Management is the synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand. To provide the highest degree of customer satisfaction at the lowest possible cost is the flow in supply chain in management of material and information. The commitment of supply chain partners is important and requires to work together to coordinate order generation, order taking, and order fulfillment in Supply Chain Management. To maximize customer value and gain a competitive advantage in the marketplace is the active streamlining of a business’ supply-side activities in Supply Chain Management. Development and implementation supply chains by suppliers is the effort represents Supply Chain Management that are as efficient and economical as possible. To product and development, the information systems are needed to direct these undertakings which is

Supply chain management has gradually been accepted by strategy makers in corporations all over the world, who are keep trying to make corporations more competitive through supply chain management. During this process, information system means a lot, which determines whether the supply chain can work well. Success of DELL is mainly determined by the quick response supply chain system, using an efficiency information system. Especially in this informative period, information acquiring ability means everything. Details on DELL supply chain managing through information system are also stated here.

Dell had to solve the problem of balancing the production of laptops, desktops and servers. On the laptop market, which Dell was committed to

Supply chain is long and penetrates almost all business processes. The chain can extend from raw materials to final sales or deliveries to end users. It connects an organization with multiple levels of customers as well as suppliers, and acts as a channel on which to exchange information and transfer orders in terms of product flow (CIPS, 2013). The role of supply chain plays in a business determines the necessity of supply chain management (SCM) improvement. According to APICS Dictionary (2016), SCM involves “design, planning, execution, control, and monitoring of supply chain activities”. It affects

Dell generates more than $50m revenue per day in sales through its worldwide websites.4 Core to Dell’s e-business success is a series of customised websites provided to its various customers. Dell.com provides a high level of service to its customers and suppliers. Ordering and production is speeded up, greater accuracy follows direct ordering by customers, and current technologies are delivered to consumers. Dell.com gives consumers the ability to purchase online and access technical advice. It is a fundamental feature of Dell.com to offer time to market technology. Dell.com offers the customer the ability to: • Upgrade the system so it can be configured to the technology the consumer wants • Style the product of their choice by selecting the colour, trim and art