Supply Chain Management and Dell
1. Introduction
Purpose of this assignment is to analyse the case study of the Dell Inc, relating to the seven questions asked on the case study.
Objective of the case study analysis is to get a deeper understanding of the Global production, outsourcing and logistics.
2. Company overview
Dell is a global information technology company that offers its customers a broad range of solutions and services delivered directly by Dell and through other distribution channels. Their focused is to provide technology solutions that are more efficient, more accessible, and easier to manage.
Dell Inc. is a holding company that conducts its business worldwide through its subsidiaries. Their global corporate headquarters is located in Round Rock, Texas.
In terms of the PC manufacturing market, DELL is at number 3 position (Behind HP & Lenovo) with annual revenue of USD 62,071 Million. They made a net profit of USD 3,492 Million for the year 2012, which would translate to a net profit margin of 5.6%.
Dell focuses on 4 main market target segments.
Segment Revenue percentage
Large Enterprises 30%
Public 27%
Small & medium business 24%
Consumers 19%
Table 2.1 – Dell Inc’s marketing segments
The product portfolio of Dell consists of selling Servers, Networking, Storage, Outsourced services, Project Management, Support & deployment services, Infrastructure, Cloud, Security services, Applications, Business Process services, Client devices: notebooks, workstations, tablets, smartphones, and desktop PCs
For the purpose of the case study, the focus will be on the products & distribution of personal computers.
3. Case study questions
3.1.1. What are the advantages to DELL of having manufacturing sites located where they are?
A company once decided to place their productions overseas, must make a decision to whether to centralize their production or to de-centralize it over different countries. A company will look at 3 areas in making this decision.
• Country
Purpose of this assignment is to analyse the case study of the Dell Inc, relating to the seven questions asked on the case study.
Objective of the case study analysis is to get a deeper understanding of the Global production, outsourcing and logistics.
2. Company overview
Dell is a global information technology company that offers its customers a broad range of solutions and services delivered directly by Dell and through other distribution channels. Their focused is to provide technology solutions that are more efficient, more accessible, and easier to manage.
Dell Inc. is a holding company that conducts its business worldwide through its subsidiaries. Their global corporate headquarters is located in Round Rock, Texas.
In terms of the PC manufacturing market, DELL is at number 3 position (Behind HP & Lenovo) with annual revenue of USD 62,071 Million. They made a net profit of USD 3,492 Million for the year 2012, which would translate to a net profit margin of 5.6%.
Dell focuses on 4 main market target segments.
Segment Revenue percentage
Large Enterprises 30%
Public 27%
Small & medium business 24%
Consumers 19%
Table 2.1 – Dell Inc’s marketing segments
The product portfolio of Dell consists of selling Servers, Networking, Storage, Outsourced services, Project Management, Support & deployment services, Infrastructure, Cloud, Security services, Applications, Business Process services, Client devices: notebooks, workstations, tablets, smartphones, and desktop PCs
For the purpose of the case study, the focus will be on the products & distribution of personal computers.
3. Case study questions
3.1.1. What are the advantages to DELL of having manufacturing sites located where they are?
A company once decided to place their productions overseas, must make a decision to whether to centralize their production or to de-centralize it over different countries. A company will look at 3 areas in making this decision.
• Country