Senior Project Manager
| U02A1 Dell Supply Chain | James DeHaven | BUS3022 Fundamentals of Supply ChainCapella University |
Why has Dell’s Direct Supply Chain been so Successful?
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 facility to the customer. The customer expectation was they would get the designed computer they selected at the price point and Dell would ship the custom configured computer within days to their desired location.
The direct supply chain model operating at Dell provides a large variety of computer configurations while keeping low levels of component inventory (Chopra, 2012, Pg. 6). Dell structured the direct model supply chain to not include the distribution and retail functions which lowered costs. Additionally, lower inventory and no warehouses in the supply chain structure lowers costs in the supply chain model. Dell uses the direct model for customers to purchase personal computers and business enterprise computer solutions. The company operates six manufacturing facilities across the globe that complies to ISO 9001 - 2000 year certification. Dell utilizes tailored standards based solutions and communicates with customers via phone, email, or in person (Dell, 2009).
Describe the Main Supply Chain Challenges Dell Faces Now and Recommendations
There are changes that can impact a supply chain from many areas. The computer hardware and technology advances will impact the components and hardware configurations that Dell
Why has Dell’s Direct Supply Chain been so Successful?
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 facility to the customer. The customer expectation was they would get the designed computer they selected at the price point and Dell would ship the custom configured computer within days to their desired location.
The direct supply chain model operating at Dell provides a large variety of computer configurations while keeping low levels of component inventory (Chopra, 2012, Pg. 6). Dell structured the direct model supply chain to not include the distribution and retail functions which lowered costs. Additionally, lower inventory and no warehouses in the supply chain structure lowers costs in the supply chain model. Dell uses the direct model for customers to purchase personal computers and business enterprise computer solutions. The company operates six manufacturing facilities across the globe that complies to ISO 9001 - 2000 year certification. Dell utilizes tailored standards based solutions and communicates with customers via phone, email, or in person (Dell, 2009).
Describe the Main Supply Chain Challenges Dell Faces Now and Recommendations
There are changes that can impact a supply chain from many areas. The computer hardware and technology advances will impact the components and hardware configurations that Dell
References: Chopra, S., & Meindl, P. (2012). Supply Chain Management: Strategy, Planning, and Operation (5th ed.). Upper Saddle River, NJ: Prentice-Hall. Dell (2009). Dell Direct Model. Retrieved from http://www.youtube.com/watch?v=EG5z-d81emI&feature=youtu.be