Supply Chain Strategy Of Dell Corporation

TOPIC: Supply Chain Strategy of Dell Corporation

Introduction

Supply Chain Management: Supply Chain is a process of management from the making of the products to send it to end users. It comprises of all aspects from supplier to customers. It mainly involves activities like procurement, manufacturing, logistics. It is required to satisfy the customer’s demand o high level. Dell Corporation:

Dell Corporation is an organization which is involved in selling and repairing computer technology products. Michael Dell is the founder of this corporation. They are now working on supply chain management to improve their business performance and be competitive in the present market.

Dell Infrastructure Services promise to help their consumers

They receive orders and deliver their products directly to consumers. They also have strategic alliances with other companies to promote direct selling.

Below is the chart of their distribution channel. Planning at Dell

For achieving any task Dell has proper planning system, a survey of the facts and figure that an organization should follow. The secret of the success of Dell is their best supply chain system which made them able to make changes and bring innovation to their products. Direct sales to customer has also helped them to grow more.

They also have proper market knowledge that what their competitors are going to do, which new things consumer needs in computers and other products. They keep on making changes and be updated as per the market. Their strategic way of using available information has made them to be efficient from order to delivery.

Dell’s Supply Chain flow:

• Supplier:

They have started supplying directly to their customers. They supply their products after every 2 hours to the selling point. They are direct suppliers. Dell has promoted greatly by using a highly integrated supply chain which results in having advantages of vertical integration.

• Customer

They mostly ready small parts and then assemble them as per the orders received.

• Merging:

At merging centers they combine all finished products which are ordered by customers. So that they easily dispatch on time.

• Consumers:

Consumers have sales return option available. If they receive any kind of damaged products they can return in their warranty period of time.

• After Sales Service:

They also provide after sales services to their customers like repairing and exchange products.

Dell’s Demand Management:

Dell have gathered their demand management staff to analyze the demands timely. They have to forecast the demand on every single step of production. This plays a vital role in increasing sales, managing material, timely delivery and stop wastage.

Dell is using below strategies and procedure.

Strategy & Planning: Dell’s strategic level of management who are involved in supply chain are working on 7 P’s marketing mix to promote their business. Which are as follows:

• Product:

They are highly conscious about what they are selling. They want to give their best to consumers and reduce complain as much as