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