DELL Supply Chain Management

Larissa, Magarytha, Elena, Saskia

What is Supply Chain Management (SCM) ?

• A set of approaches used to efficiently integrate

a. Suppliers

b. Manufactures

c. Warehouses

d. Distribution center

• So that the product is produced and distributed

a. In the right Quantities

b. To the right locations

c. And at the right time

Dell Orchestration

• Supply Chain Processing

• People

• Process

• Technology

• Accelerators

• Logistic and SCM Solutions

Process• Direct Sales

• Inventory Management

• Supplier Integration

Together these allow for maximum effectiveness with minimum cost

3 PL & 4 PL Strategy • 3PL: Logistics service provider, re-

engineered process, offering variety

• 4PL: Fourth-Party-Logistics, provider of a service how is not given any trucks but coordinates the service of the logistic company

• 3PL: Dell coordinates his own logistics, but uses the shipping service from a logistic service (DHL)

• 4PL: Dell is not coordinating his own supply chain, an external company coordinates the logistic for Dell (consultant)

Design Thinking

Design Intuition

2 HQ: AmericaUSA3PL: suitableAnalyse forecast

Strategic fit • Understanding customers needs

• variety of products needs

• price of the product

• service level reguired

• Understanding the supply chain

• meet short lead times

• build highly innovative products

• meet a very high service level

• Achieving strategic fit

• all functions of the supply chain must support competitive strategy to achieve strategic fit

Benefits obtain through SCM• improvement of forecast accuracy

• improvement on order reliability

• reduction of lead times

• reduction of inventory

Core Value Dell

• mass customization ( delivers exactly what the customer wants)

• partnerships with suppliers

• just-in-time components inventories ( quick introduction of latest technology)

• direct sales

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