SUPPLY CHAIN OF DELL

by
NANDA
IBA, Bangalore
INTRODUCTION: DELL

 FOUNDED IN 1984

 It is a multinational technology corporation that develops,

manufactures, sells and supports personal computers and
other computer related products.

 Products: personal computers, servers, data storage

devices, network switches, software and computer
peripherals.
The supply chain of dell includes:

The customer
Dell’s Website
Dell assembly plant
Dell’s suppliers
Their suppliers
Types of supply chains: depending on timing of execution

Pull process (reactive process)

Push process (speculative process)

Process cycle of DELL:
Customer order and manufacturing cycle
- pull process

Procurement cycle
- push process
Push/Pull View of DELL Supply Chain:
Procurement cycle Customer Order and
Manufacturing cycle

PUSH PROCESSES PULL PROCESSES

Customer
Order Arrives
1-6
Competitive strategy : DELL

To provide large variety of customizable products at

Reasonable price.

New product development strategy: DELL

Designing products that are easily customizable, i.e

designing common platforms across several products.
Supply chain strategy: DELL

To achieve high flexilibility and responsiveness

Supply chain responsiveness: DELL

(capabilities of DELL’s supply chain)

Respond to wide range of quantities demanded

Try to meet short lead times
Handle a large variety of products
Build high innovative products
Handle supply uncertainity
Responsiveness

High

Low
Cost
High Low 2-9
Drivers of supply chain: DELL

Facilities: low facility costs

Inventory: low inventory costs

Transportation: high transportation costs

Information: high information costs

Inventory
Costs

Number of facilities
Transportation
Costs

Number of facilities
Distribution in the supply chain:

Distribution refers to steps taken to move and store a product

From supplier stage to customer stage in the supply chain.
Types of distribution networks:
Manufacturer storage with direct shipping
Manufacturer storage with direct shipping and intransit merge
Distributor storage with carrier delivary
Distributor storage with last-mile delivary
Manufacturer or distributor storage with customer pickup.
Retail storage with customer pickup.
Distribution network: DELL

Manufacturer storage with direct shipping

Manufacturer storage with direct shipping and intransit merge
Manufacturer Storage with
Direct Shipping
DELL assembly
plant

DELL web

Customers

Product Flow
Information Flow
 In-Transit Merge Network
units

website In-Transit Merge

Customers

Product Flow
Information Flow