Supply Chain Mapping for a Complex Consumer Purchase
"Voice of the Customer"
Dell implemented a Voice of the Customer or "end-to-end” flow of distribution, fully embracing the entire supply chain. Dell has aligned its supply chain people, processes and technology to meet customer needs at each step, but here is the critical point: Dell recognized those answers and capabilities were different for its different customer segments and hence the need to build multiple supply chains (e.g., customer direct versus retail). Dell has over looked one major opportunity; though they refer to their supply chain as “end-to-end” they have not incorporated their own suppliers. By doing this, they would be able to take their already advanced supply chain to the next level, enforcing the difficulty of reproducing their supply chain for their competition. Additionally this would allow Dell to implement a planning, forecasting and replenishment (CPFR) system this would help provide more information to the supply and demand so that it can be better matched. Some of the other benefits that can be realised by implementing a CPFR system can include; * Better relationships * Increased sales and revenues * Greater product offerings * Higher return on technology investments
Although Dell is in the middle of their supply chain, representing assembly through retail, Dells point of view for their supply chain takes place at the consumer’s level, as they build the supply chain from the customer back. But most companies don't have just one type of customer, do they? So we need to build perhaps several supply chains back from different types of customers. How the heck do they do that?
As you can see from the chart above, Dell has a customer driven supply chain. This means that they operate on a “configure to order" approach to manufacturing—delivering individual PCs configured to customer specifications; otherwise known as pull type manufacturing. Their supply chain begins at the design stage of the computer and flows
Dell implemented a Voice of the Customer or "end-to-end” flow of distribution, fully embracing the entire supply chain. Dell has aligned its supply chain people, processes and technology to meet customer needs at each step, but here is the critical point: Dell recognized those answers and capabilities were different for its different customer segments and hence the need to build multiple supply chains (e.g., customer direct versus retail). Dell has over looked one major opportunity; though they refer to their supply chain as “end-to-end” they have not incorporated their own suppliers. By doing this, they would be able to take their already advanced supply chain to the next level, enforcing the difficulty of reproducing their supply chain for their competition. Additionally this would allow Dell to implement a planning, forecasting and replenishment (CPFR) system this would help provide more information to the supply and demand so that it can be better matched. Some of the other benefits that can be realised by implementing a CPFR system can include; * Better relationships * Increased sales and revenues * Greater product offerings * Higher return on technology investments
Although Dell is in the middle of their supply chain, representing assembly through retail, Dells point of view for their supply chain takes place at the consumer’s level, as they build the supply chain from the customer back. But most companies don't have just one type of customer, do they? So we need to build perhaps several supply chains back from different types of customers. How the heck do they do that?
As you can see from the chart above, Dell has a customer driven supply chain. This means that they operate on a “configure to order" approach to manufacturing—delivering individual PCs configured to customer specifications; otherwise known as pull type manufacturing. Their supply chain begins at the design stage of the computer and flows