Dell Procurement Process Essay

Introduction to Dell
Dell is a global information technology company that conducts its business throughout the world through its subsidiaries. Dell operates in four parts: End-User Computing Group (EUC), Enterprise Solutions Group (ESG), Dell Services and Dell Software Group.
EUC understands customers demand and point of view. They develop end to end solutions for companies to deploy virtual desktop, making of software, hardware, pulling together peripherals and developing products.
Dell ESG provides a server designed for complex enterprise application such as Dell’s PowerEdge R930 server. With Dell’s fastest, 4-socket, 4U server coupled with massive memory footprint and unparalleled internal storage scalability, the R930 server will provide customers with unsurpassed application performance that can adapt to unknown demands.
Dell Services offer

They will then do a demand prediction and come up with a report that they will share with the material resource planning team.
Production planning will then be planned by the material requirements planning team to check if the inventory has enough components required. If the inventory has a sufficient amount of components, they will proceed on to build the computer.
If there is not enough, they will inform the procurement department to purchase the required amount of components. The supplier has already been determined by the R&D department to see if the parts for the supplier has is compatible with the company’s mother bot for example. This is also called the quantifying process.
Valid Term Contract
The material requirements planning team will check if the term contract is negotiated. If the term contract is negotiated, the procurement department will then purchase the required amount of components needed.
Expired Term