DELL SUPPLY CHAIN ANALYSIS

Presenters:Deepika K S Deepika SDhanush PatelDileep MDileep

- Dell marketing team

• Started in Michael Dell’s dorm room at the University of Texas

• Reason- supply chain and distribution strategy

1983 1985 2000

$6 million $500 million $25 billion

Supply chain integration strategies

• Use of rapid seamless communication • A clear definition of what DELL does best • Selection of partners who are best in their respective

fields • Use of a minimum number of suppliers • Using internet as a strategy• Less emphasis on guarding intellectual assets and more

emphasis on using assets rapidly before they become out of order

Functioning

Historical Sales List price Promotions Competitor promotions Inventory position Market trends

STRENGTHS

Total command Knowledgeable

Low operating costs

Direct customer

relationship

Inventory

REASONS FOR SUCCESS

• No more middlemanMail-order systemUse of internet

• Virtual integrationDell also required its key suppliers to establish inventory hubs near its own assembly plants.

• Innovation on the assembly floorManufacturing cells

WEAKNESS

• Dell’s sales revenue from educational institutions such as colleges only accounts for a merely 5% of the total

OPPORTUNITIES

• Diversification strategyPeripherals including printers and toners, but now also includes LCD televisions

• The internet

THREATS

• The competitive rivalry

• Fluctuations in the world currency markets

• Almost identical prices

• Technological advancement

"We are always looking for ways to take out waste, to take out time and take out costs, and then passing those savings along to our customer"

- Dave Schneider Engineering Manager for

Dell Americas operations

DELL

THANK YOU