Dell Procurement Strategy
Group
3
The Power to do
More
Dell Procurement
Strategy
2nd October 2014
Indian Institute of Management
Kashipur
Ankit Bansal | Arnab Kanti | Kunal Delwadia | Prashant Gaur |
Supply Chain
Model
PC
Component
Supply
•
•
This is when dell began to introduce a new business model. It converted its operation to built-to-order process, eliminated its inventories through a just-in-time system, and sold its products directly to consumers shown in figure above.
Dell attempted to develop a supply chain model that went beyond the pursuit of efficiency and asset productivity. It was attempting to displace the current model with one that made supply chain more efficient and delivered more value
Supplier
Partnership
•
•
•
•
Partial
Assembly
Using name brand component enhanced the quality and performance of Dell PC’s.
Getting volume of components it needed the overall market supply.
It is feasible to have some of supplier engineers assigned to Dell Product design team and for them to be treated as part of Dell.
Dell’s long run commitment to its supplier laid the basis
Consumer
Specific
Configurati on Built-ToOrder
Dell’s Procurement System
•
•
•
•
•
Focus on waste, time and cost reduction to maintain margines in compatetive market Dell relies on a unique supply chain strategy that gathers large volumes of customer information through its directsales model and shares it with internal procurement and sales departments, as well as external suppliers
This close relationship allows dell to know what they must be able to supply in real time, and then very quickly and precisely meet that demand while maintaining low inventory
Data loop between consumer sales team and other with supplier, sales and procurement team.
Procurement
Capabilities
Category
Management
•
Category strategy development •
Demand management
•
Strategic Sourcing
•
Supplier Relationship
Management
•
Supplier Performance
Sourcing
Management
Management
•
•
•
•
•
•
RFx Processing
Spot buy
3
The Power to do
More
Dell Procurement
Strategy
2nd October 2014
Indian Institute of Management
Kashipur
Ankit Bansal | Arnab Kanti | Kunal Delwadia | Prashant Gaur |
Supply Chain
Model
PC
Component
Supply
•
•
This is when dell began to introduce a new business model. It converted its operation to built-to-order process, eliminated its inventories through a just-in-time system, and sold its products directly to consumers shown in figure above.
Dell attempted to develop a supply chain model that went beyond the pursuit of efficiency and asset productivity. It was attempting to displace the current model with one that made supply chain more efficient and delivered more value
Supplier
Partnership
•
•
•
•
Partial
Assembly
Using name brand component enhanced the quality and performance of Dell PC’s.
Getting volume of components it needed the overall market supply.
It is feasible to have some of supplier engineers assigned to Dell Product design team and for them to be treated as part of Dell.
Dell’s long run commitment to its supplier laid the basis
Consumer
Specific
Configurati on Built-ToOrder
Dell’s Procurement System
•
•
•
•
•
Focus on waste, time and cost reduction to maintain margines in compatetive market Dell relies on a unique supply chain strategy that gathers large volumes of customer information through its directsales model and shares it with internal procurement and sales departments, as well as external suppliers
This close relationship allows dell to know what they must be able to supply in real time, and then very quickly and precisely meet that demand while maintaining low inventory
Data loop between consumer sales team and other with supplier, sales and procurement team.
Procurement
Capabilities
Category
Management
•
Category strategy development •
Demand management
•
Strategic Sourcing
•
Supplier Relationship
Management
•
Supplier Performance
Sourcing
Management
Management
•
•
•
•
•
•
RFx Processing
Spot buy