Management Case Study: Dell's Supply Chain Management

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CASE-STUDY CONTENTS:

1. An overview of the case-study project
2. Case-study questions
3. Case-study text: 3.1. Introduction 3.2. Dell: сompany оverview 3.3. Dell: history 3.4. Dell: products and services 3.5. Dell: competitors 3.6. Dell: SWOT-analysis 3.7. Dell: Company highlights 3.8. Dell: supply chain management 3.9. Typical working of Dell’s supply chain
4. Solution of the problem
5. Conclusions and recommendations
6. Glossary (English-English-Russian)
7. References

1. AN OVERVIEW OF THE CASE-STUDY PROJECT

In recent years Supply Chain Management (SCM) has received increased attention from both academicians and managers. Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and networked economy. Supply chain management is a cross-function approach including managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end-consumer. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and the velocity of inventory movement. The focus of this case-study is the supply chain management practices of Dell. Dell has been following its unique ‘direct build-to-order’ sales model for more than 20 years. Customers can plan their own configuration and place orders directly with the company via the phone or its Web site. Over the years, Dell’s supply chain efficiencies and direct sales gave it a competitive advantage. The case-study examines how Dell has replaced inventory with information, and that has helped turn it into one of the fastest, most hyperefficient organizations on the planet. Here's how Dell uses speed as the ultimate competitive weapon, and why rivals may never be able to catch up. This case-study covers the following issues:  examine and analyze Dell’s Direct model, its basic working, success and future challenges;  typical Working of Dell’s Supply Chain and future supply chain challenges;  highlights Dell’s evolving Supply Chain practices and strategy and steps being taken by it to recapture its lost market leader position. 2. CASE-STUDY QUESTIONS 1) What is a Supply Chain? 2) Why is a Supply Chain Strategy so important for companies in the IT industry? 3) How Direct Model of selling PCs enabled Dell to manage its supply chain efficiently? 4) How can Dell maintain its customer relationship management, and what technology will it need to implement to accomplish this goal? 5) How can Dell streamline its supply chain to further enhance planning and execution, reducing inventory levels while still meeting customer demands? 3.
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CASE-STUDY TEXT

Case-study keywords: Dell, Direct model, Supply Chain Management, Supply Chain Strategies, Build-to-order model, Inventory optimization, PC Manufacturing, Retail Distribution Channel, HP, Notebook computers, Desktop personal computers, Competitive Business Strategies, Sustaining competitive advantage, Michael Dell, Distribution Strategy.

3.1. INTRODUCTION

In this case-study we have looked at the supply chain and supply chain management. A supply chain is defined as a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers.
Supply chain management (SCM) - design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally. Manufacturers and service providers have used the same term to describe integration and partnership efforts with first- and second- tier suppliers to reduce cost and improve quality and delivery timing. Terms such as integrated purchasing strategy, integrated logistics, supplier integration, value chain management, supply base management, strategic supplier alliances, lean production, Just-In-Time (JIT) logistics, and supply chain synchronization have been used in the literature to address certain elements or stages of this
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Headquartered in Round Rock, Texas, Dell serves customers ranging from the world’s largest and most demanding businesses and public-sector organizations, to small and medium businesses, and consumers worldwide. Recognized for its ability to provide customers personalized, built-to-order technology through direct, online and retail channels, nearly 80 percent of Dell’s $53 billion in revenue last year was driven by enterprise products, services and solutions it delivers to businesses and

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