Dell Jit

dingle proviso cooking stove Management Case piece of work 1 Case Contents 1. Introduction 2 2. dell alliance everywhereview . 2 3. dingle Products and Services .. 3 4. dingle key out Facts . 4 5. dell Timeline. 6. dingle clientele discussion section Information.. 6 7. dingles Evolving Supply Chain Strategy. 7 7. 1. Typical on the job(p) of dells Supply Chain .. 7 7. 2. Five key strategies in dells conquestful channelize Model .. 7 7. 3. A bestow concatenation with previous(a) engineering is of little prise .. 8 8. Restructuring at dell . 8. 1. New Distri furtherion impart cipher Model and Retail Strategy .. 8 9. Integrating the Supply Chain . 9 This case development covers the following issues 1. Examine and analyze dells Direct model, its basic working, success and future challenges 2. Typical work of Dells Supply Chain and future supply train challenges 3. Highlights Dells evolving Supply Chain practices and strategy and steps world taken by it to re capture its broken market leader positionCase conceive depictwords Dell, Direct model, Supply Chain Management, Supply Chain Strategies, Build-to- bless model, caudex optimization, PC Manufacturing, Retail Distribution Channel, HP, Notebook figurers, Desktop ain computers, Competitive Business Strategies, Sustaining competitive advantage, Michael Dell 1 Please none This case study was compiled from published sources, and is intended to be apply as a buttocks for class discussion. Accuracy of information cannot be guaranteed. Please do not copy without permission. casestudyinc. com 2008 1. Introduction Dell thinks around their offers as microprocessors, disk drives and frames-per-second graphics. except consumers just want a computer they can be exalted of when they show it to their friends, listen to music, watch videos and do office work Christian Terwiesch, a Wharton professor Dell has been following its unique post build-to- mark gross sales model for more than 20 years. Customers can plan their own word form and place orders directly with the club via the phone or its Web site. Over the years, Dells supply mountain chain efficiencies and direct sales gave it a competitive advantage.In 2006 however, Dell faced several problems. Many customers complained about big delays in supplies. Recall of Sony battery cells in its laptops brought undesirable media hype to the company. change magnitude discontent of customers led to a slowdown in sales. Consequently, Dell lost its market leadership to HewlettPackard Co. (HP). attention analysts felt that, with Dells competitors overly improving their supply chains and matching Dells direct model, the company had been losing its competitive edge. Dell go out have to bear additional cost with its foray into retail dispersion thereby minimizing its cost advantage.Besides, profit margins of Dell leave alone drop get on since it will have to offer incentives to compete with HP in retail stores. Th ough Dell spruced up its reaping design and range but Apple is clearly far ahead of it. Many experts feel that such new initiatives will only distract Dell from its supply chain operations. 2. Dell Company Overview Dell is a leading technology company, offering a wide range of computer reaping categories. Its product categories take on desktop computer systems, mobility products (notebook computers), servers, storage, software and peripherals, and services.Dell is the number one supplier of personal computers in the United States, and the number two supplier cosmopolitan. Dell also offers various financing alternatives, asset management services, and other customer fiscal services. Dell has manufacturing locations worldwide. Dells build-to-order manufacturing model allows it to substantially reduce costs and at the same judgment of conviction offering customers the ability to customize their product purchases. 3. Dell Products and Services Product Lines and Brands Desktop PCs OptiPlex balance XPS Alienware Vostro Servers and Networking PowerEdge and PowerConnectStorage Dell EMC and Dell PowerVault Mobility XPStm and Alienware, Inspiron and Latitude lines of notebook computers Software and Peripherals Dell branded Printers, software titles, televisions, notebook accessories, networking and wireless products, digital cameras, power admiters, scanners, and other products Enhanced Services al-Qaeda Consulting Services Deployment Services. Asset Recovery and Recycling Services. Training Services try Support Services Client Support services Managed Lifecycle services financial Services Various customer financial services for business and onsumer customers in the U. S. by with(predicate) Dell Financial Services L. P 4. Dell Key Facts Dell Quick Facts Company Type Corporate Headquarters Revenues Industry Employees Manufacturing Facilities Distribution Product Lines Brands Major Competitors Business/Growth Strategy Key Executives Name, (age) ,Designation Website Public (NASDAQ DELL) Round Rock, Texas $57. 4 billion (fiscal 2007) Hardware, PC Manufacturing Approximately 90,500 union employees (Fiscal 2007) Brazil El Dorado do Sul Florida Miami (Alienware) North Carolina Winston-Salem Ohio West Chester Tennessee Lebanon and Nashville Texas capital of Texas Ireland Limerick and Athlone (Alienware) China Xiamen Malaysia Penang Worldwide Desktop PCs Mobility products Servers and Storage Software and peripherals and Services OptiPlex Dimension XPS Dell Precision and Alienware MJ-12 PowerEdge Dell PowerVault Inspiron Latitude HP Acer Lenovo Direct customer model Highly efficient manufacturing and logistics, and New dispersion take to reach customers Michael S. Dell (42) death chair of the Board of Directors and CEO Donald J. Carty (61) Vice Chairman and CFO Michael R.Cannon (54) President, Global operations Stephen J. Felice (50) Senior VP and President, Asia Pacific-Japan Mark Jarvis (44) Senior VP, chief Marketing Officer David A. Marmonti (48) Senior VP and President, EMEA www. dell. com 5. Dell Timeline Dell Timeline 1983 Michael Dell used to upgrade IBM compatible PCs in his spare. (He was a freshman at the University of Texas, Austin) 1984 Michael Dell established PCs Ltd with sales US$ 6 trillion in its outset full year of operations 1985 Turbo PC, first computer introduced by the company. Turbo PC was advertised in computer magazines and sold directly to customers 993 Dell joins the ranks of top-five computer system makers worldwide 1996 Dell pioneers Internet sales with earnings approx 1 million dollars per day just seven months after launch of www. dell. com 1998 The company changed its name to Dell Computer Corporation 1999 Dell introduces E- subscribe tool to provide online technical support 2000 Online sales continue to grow to $50 million per day 2001 Dell achieves No. 1 ranking on globose market share 2003 Dell launches Dell Recycling initiative 20 04 Inventory turnover rate in Dell was at 107 times a year, compared to 8. 5 times at HP and 17. times in IBM. 2005 the Statess Most Admired Company Fortune Magazine 2005, 2006 Dell faced several problems, and lost its position as the largest merchandising PC manufacturer to HP 2007 Dell announced that it planned to move almost of its global supply chain and manufacturing operations to Singapore, which would function as the companys dual-lane headquarters 2007 Michael Cannon assumes responsibility as the Head of Global Operations Organization 2007 Michael Dell (Michael) returned as CEO on January 31, 2007 2007 Retail partnerships with Wal-Mart, Staples, Gome, Bic photographic camera and Carphone Warehouse 2007Dell launches the Direct2Dell corporate blog and other idea forums to listen and operate customers 6. Dell Business Segment Information Dell conducts operations worldwide. Dell is managed in trine geographic regions Americas Europe, Middle East, and Africa (EMEA) Asia Pacific-Japan (APJ). Major Business Segment Based in Americas Round Rock, Texas EMEA Bracknell, England APJ Singapore Covers Business sales to corporate, government, healthcare, education, and crushed and medium business customers U. S. Consumer sales primarily to individual consumers and selected retail partners Covers Europe, the MiddleEast, and Africa. Covers the Asian countries of the Pacific Rim as well as Australia, New Zealand, and India 7. Dells Evolving Supply Chain Strategy Dells old performance has been the result of its direct customer model. Dells success is attributed to a constant focus on delivering directly to its customers, related technology and services at the best value. Dells operations admit highly efficient manufacturing and logistics to lower the cost of technology. 7. 1. Typical Working of Dells Supply Chain Dell Supply Chain works as follows 1. Customer places an order, either by phone or done the Internet on its website . Dell processes the order i n 2-3 days by evaluating financial feasibility (credit checking) and technical feasibility (technical con? guration) 3. Dell processes the order to one of its manufacturing locations 4. These plants can put together, test, and package the product in about eight hours 5. Dell typically plans to ship all orders no later(prenominal) than ? ve days after receipt 7. 2. Five key strategies in Dells successful Direct Model Five key strategies in Dells successful Direct Model Rapid time to volume Built to order products Elimination of reseller markupsSuperior customer service and support Low inventory and capital investment 7. 3. A supply chain with old technology is of little value The direct model involves bypassing retailers and selling personal computer systems directly to customers. This helps avoid the delays and costs of an additional demo (holding inventory) in the supply chain. Typically, each technology component loses about 0. 5 to 2 percent in a rapidly changing environme nt. A supply chain with old technology is of little value. Dell keep very little inventory and concentrated on pacing its products through its supply chain.This also meant that there was no question of selling old products at a discount. 8. Restructuring at Dell Dell failed to meet its every quarter financial forecasts. Consequently, Dell lost its market leadership to Hewlett-Packard Co. (HP). In order to settle a few accounting issues, the company decided to repeat its financial results for the last four years. Michael Dell had to take the CEOs responsibility again, replacing Kevin Rollins. Michael Dell felt the importance of increasing the capacity, via the direct model, to manufacture close to its customer and fully meld its supply chain into one global organization.To do so Dell had to innovate and adapt its supply chain model to help drive differentiated product design, manufacturing and distribution models. He began a series of restructuring exercises. 8. 1. New Distribution Channels Direct Model and Retail Strategy While part of the restructuring tortuous cutting 8,000 jobs, or 10. 0% of its workforce, the biggest surprise was the move of Dell to co-occurrence its direct sales model with sale of PCs through retailer convey as well. To reach even more customers globally, Dell launched new distribution channels to reach commercial customers and individual consumers around the world.This meant moving from a model of direct sales to making its goods available in stores crossways the world. This move allowed Dell to reach customers that it could not reach directly previously. From June 2007, it started placing its products in the shelves of Wal-Mart and Sams Club stores. In December 2007, Dell also announced that its Dell laptops and desktop computers will be sold through Tesco stores in Britain and Ireland as well as the high-growth eastern European markets of Poland, Czech Republic, and Slovakia. In U. S. Asia and Europe, Dell added Best Buy, WalMar t, Staples, Chinas Gome Stores, Japans Bic Camera, Frances Carrefour and British phone retailer, Carphone Warehouse to sell its products at nearly 10,000 retail outlets worldwide. In December 2007, Dell also chose WPP, the worlds second-largest marketing, media and communication theory conglomerate after Omnicom, to create a new agency that will handle $4. 5 billion in accounts over the next three years. Dell hoped that creating the agency would increase the time and money spent counsel on marketing and customers rather than pitching for the next project 9.Integrating the Supply Chain Earlier, Dells manufacturing, supply chain and procurement activities functioned separately. Procurement functioned as a standalone unit, the regional business executives were in-charge of manufacturing, and supply chain was a part of the worldwide operations of the company. All Dells factories had been managed regionally, and procurement functioned as a separate division. Michael aimed to integrate its supply chain and achieve higher efficiency and quality through Global Operations Organization (GOO). GOO is Dells center for integrating its global manufacturing, procurement