Introduction
Dell is a multibillion-dollar corporation that helps empower individual and communities with their innovative technology. Dell requires that all suppliers (domestically and globally) comply with the laws and regulations where the suppliers conduct business. Using global suppliers, Dell will need to understand the logistics to from the foreign suppliers to the end customer’s doorsteps. This paper will advise the factors impacting Dell’s transportation needs. It will also recommend the logistic methods within the local region, domestic, and international shipments. Last, this paper will summarize Dell’s strategic requirements of global logistic. Global logistics will also explain what Dell will need to do in order to ensure that the company keeps production plants in the countries that will profit the business.
Factors Impacting Transportation Needs
The movement of product from one destination to another to meet customer needs is an action within transportation. A logistic manager has six modes of transportation to choose from to transport product both safely and cost effective: air, pipeline, motor carrier, rail, water, and Internet. With these options, factors to consider are carrier selection and the route the driver is taking for an on time delivery. Inside this consideration, identifying customer requirements along with cost and service characteristics based on shipment of product type will assist in selecting the correct transportation mode. An evaluation of these characteristics is featured below in Table 1.1 that reveals a comparison with five important factors (Fawcett, Ellram, & Ogden, 2007). Evaluation of Transportation Factors | | Air Airplane | Pipeline | Motor Carrier | Rail | Water Ship | Internet | Cost | Very expensive | Very inexpensive | Expensive | Inexpensive | Very inexpensive | Extremely inexpensive | Speed | Fast | Determined by product type | Medium | Extremely Slow | Slow |
References: Fawcett, S., Ellram, L., & Ogden, J. (2007). Supply Chain Management: From Vision to Implementation. Upper Saddle River, NJ: Pearson Education, Inc. Compettive advantage at Dell. (unknown). Retrieved from http://www.globaltradeandlogistics.net/?p=49 Burt, D. N., Dobler, D. W., & Starling, S. (2003). World Class Supply Management. Retrieved from The University of Phoenix eBook Collection database.