Introduction to Supply Chain Management System: Dell Computer Corporation
Introduction to Supply Chain Management (SCM) System
Supply chain management (SCM) is the combination of activities which help a company to improve the methods to make a product or service and deliver it to customers. (Larson, 2004) SCM encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. More importantly, it includes coordination and collaboration with other people who are associated with the business like suppliers, intermediaries, third-party service providers, and customers.
SCM of Dell Computer Corporation
For studies purposes, the SCM System of Dell Computer Corporation could be categorized into following two periods:
Dell’s SCM System from 1984 to 2008:
Supply chain management of Dell in this period was mainly based on following aspects:
(i) Direct Sale and Configure to Order (CTO) platform
Dell was founded in 1984. It was the first computer company which sold its computers systems directly to end customers, bypassing distributors and retailers (resellers). The company was one of the first to introduce a configure-to-order (CTO) model where customers could have millions of configurations to customize their PCs according to their requirements. Through the direct sales approach, Dell builds systems to order, which helped the company to introduce new products and technologies faster than its competitors. Dell’s unique model helped the company in estimating customer requirements, forecasting demand, and providing low-cost PCs to customers. Dell 's supply chain basically consisted of three stages— the suppliers, the manufacturer (Dell), and end users. ("Supply chain management (SCM) of Dell Computer Corporation", 2011)
Dell matched supply and demand as its customers ordered computer configurations over the phone or online. These computer configurations were built from components that were available. Dell’s strategy was to provide customized, low
Supply chain management (SCM) is the combination of activities which help a company to improve the methods to make a product or service and deliver it to customers. (Larson, 2004) SCM encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. More importantly, it includes coordination and collaboration with other people who are associated with the business like suppliers, intermediaries, third-party service providers, and customers.
SCM of Dell Computer Corporation
For studies purposes, the SCM System of Dell Computer Corporation could be categorized into following two periods:
Dell’s SCM System from 1984 to 2008:
Supply chain management of Dell in this period was mainly based on following aspects:
(i) Direct Sale and Configure to Order (CTO) platform
Dell was founded in 1984. It was the first computer company which sold its computers systems directly to end customers, bypassing distributors and retailers (resellers). The company was one of the first to introduce a configure-to-order (CTO) model where customers could have millions of configurations to customize their PCs according to their requirements. Through the direct sales approach, Dell builds systems to order, which helped the company to introduce new products and technologies faster than its competitors. Dell’s unique model helped the company in estimating customer requirements, forecasting demand, and providing low-cost PCs to customers. Dell 's supply chain basically consisted of three stages— the suppliers, the manufacturer (Dell), and end users. ("Supply chain management (SCM) of Dell Computer Corporation", 2011)
Dell matched supply and demand as its customers ordered computer configurations over the phone or online. These computer configurations were built from components that were available. Dell’s strategy was to provide customized, low
References: "Dell modifies its supply chain strategy". (2013, September 4). Retrieved March 28, 2014 "Supply chain management (SCM) of Dell Computer Corporation" Bertot, J. C. (2011, November 3). "The impact of polices on government social media usage: Issues, challenges, and recommendations". Retrieved March 27, 2014 Blanchard, D Chan, K. (2013, January 15). "Team collaboration 2.0 way". Retrieved March 28, 2014 Dell online EfraimTurban. (2010, October 15). "A Framework for Adopting Collaboration 2.0 Tools". Retrieved March 27, 2014 Gilmore, D Jhonson, I. (2013). Dell Push-Pull Supply Chain Strategy. Retrieved March 27, 2014 Larson, P Strickland. (1999). Strategic Management, Concepts and Cases. McGraw Hill College Division:New York. Retrieved March 27, 2014