Examining the Success and Supply Chain Management of Dell

The computer industry bottomed out in the entire year 2008 and 2009 due to the recession, even though they showed a surprising breakthrough in the second option part of the year. Of these years, many computer companies have experienced a great setback due to this recession. It takes two years for these businesses to gain back their earlier market reputation. Some computer companies such as Intel, IBM, Apple computer systems and dell are doing quite well. Because of the growing demand and the new innovative products like iPhone this industry has received god final result during the 12 months 2010. The other of regions of growth and goals in the computer market are netbooks, handhelds, notebook, e-book and tablets system, storage space systems, Smartphone, cloud processing and server virtualization. The shows of newly appearing companies are much better than the Europe, Japan and US. Due to the growing demands and global computer production, China is emerging as the speediest growing country. The acquisition of sunlight Microsoft by the oracle is a significant contribution in the server market. This market is getting into a new period of the applications like cloud computing and virtualization and this can be benefitted by the sun oracle link up. The major players of the field are Horsepower because of its acquisition of Compaq computers, IBM because of its control in the organization system, Dell because of its hyper growth after the many years of have difficulty, Apple for its class leading invention. The personal computer marketplaces are rebounding after having a decrease in the demand of the 1H09. Corresponding to IDC, the full total growth in the year 2009 was 2. 9 percent but in the mobile computing it was 18. 4 percent. In the year 2010, the overall development was 12. 6 percent because of the market expansion. The figure shows 2009-2014 world Computer unit shipment.

The sales of the notebook may be influenced by the netbook sales. Acer and Asus are the leading company in this field. Apple is going to continue with the high quality segment with the marketplace show of $1000. In the group of the e-book, Apple iPad is emerging as a style establishing product. Microsoft can able to re-establish with the house windows7. The desktop computer could be helped by the virtualization. Cloud processing may help the hardware sales. X86 server solutions which is employed in the Laptop or computer server architecture has RISC server structures proprietary but most of them are destroyed. HP and IBM is good proprietary portion even during the downturn. Because of the increased pressure, the ASPs attended in the place of the X86 and parallel system. The given number shows the IDC worldwide server factory income 4Q09.

Supply string management strategies within dell computers

Supply chain management is a management of the interconnected businesses which is mixed up in provision of the service and product deals that is required by the end customers. It spans all storage area and motion of recycleables, inventory and completed good from the point of source to the use point. Because of the increasing complexity and competition, source chain management become very very important to the business world. Dell computers are one of the most profitable and successful computer corporations. It is known for its impressive products and customer service configuration. Dell is actually available of making servers and computers. In the last concept of ordering computers, the customers visited retail or electronic digital store to buy pcs. In this case customers don't have interaction with the maker. They basically connect to the salesperson and because of lack of knowledge about the merchandise the salesperson had not been in a position to increase its market value. Dell adopted the idea of direct conversation with the customer via devices and internet. The resource chain management system created by Dell ensured that the right personal computers parts are always available where and when needed. Dells strong relationship with their customers and suppliers helps them to meet their customers demand at the earliest opportunity. This process of Dell into the demand of customer provides them a competitive advantages. The business enterprise strategy of Dell in essence focused on creating most reliable SCM system via i2 that provides the streamline to the resource chain process by linking organizers and suppliers of Dell mutually in order to meet customer demand and requirements. In order to meet supply chain needs, dell deployed the software i2 cooperation planner, i2 resource string planner and i2 manufacturer planner. This i2 technology can be used to coordinate the process build-to-order. The company can in a position to combine the demand and offer area of business by using the software that will eliminates the inventory overages. This technique enables the business to move the materials directly into the factories atlanta divorce attorneys 2 hours depending on real time customer orders. The result of the new supply chain strategy is the cheapest inventory levels of Dell in the computer industry. Just-in-time inventory and real time scheduling resulted in the useful inventory deliveries and turnovers. The maintaining cost of inventory in a source chain is roofed in the ultimate cost of the Personal computer. Therefore when there are a decrease in the inventory cost, the customers of Dell will benefitted by the reduced product prices. The quality of product will be higher with the low inventories because Dell has capability to detect the situation easier than with the high inventories.

Dells approach to establishing relationships with its suppliers and customers

In the 1990s, Dell attempted to market its product through retails outlets but over time they realize that this approach was unprofitable. They decide to give attention to improving customer romance and this lead to the unique strategy. Dell has a straightforward strategy for the source management is to market the PCs directly to the customers. The aim of the Dell Company is to combine the close coordination of the vertical integration with the cost advantage of the horizontal specialty area. Dell basically handles the three types of customers. First one is large corporate customers which are also known as relationship customers, another is small businesses and home and last one is open public sector. The communication programs employed by the dell company are call centers and internet to help their customers. Dell also assigns phone and sales service representative to each romance customers. They also provides a website facility where all the recorded customers are able to communicate with them at faster acceleration and in a position to place order online and can ask for the technical support every day and night a day. The central role in the success of the Dell is enjoyed by the immediate model. This model fundamentally helps in retaining customer romantic relationships. Another method used by the Dell in retaining customer marriage is Platinum Councils. Corresponding to this they organize meetings for their relationship customers welcoming technicians and professionals to discuss about their latest products and present them chance to talk about their encounters and views. The relationship of dell using their suppliers is an important column of immediate model. These kinds of relationship are also called business to business interactions. Corresponding to palmer, it can be described as vertical relationship in which they integrate a part or all the source chain. The partnership of Dell with the suppliers has been subject to through various development in the last twenty years. Before, Dell experienced more than 140 suppliers. As the time history, the maintenance of the human relationships was considered too costly and dropped its performance. Then Dell redesigned its personal computers in such a way that the latest models of can be employed by as many components as you can. Now, Dell has only 30 suppliers which provide them with 75% of the material needs. Now days, the strategy implemented by Dell is to have few suppliers as possible. Dell sustains a dynamic romantic relationship network with the suppliers in order to stay flexible. The idea applied by the Dell in season 1999 is just-in-time in order to control its relationship using its suppliers. According to the strategy, the suppliers will restock its part when they are needed. In practice, this concept is tiny bit sophisticated, but the fact is that dell company has no mass production so they produces build to order. Dells source chain and its suppliers are effectively interwoven and helped these to make this process work. Dell stocks its design databases, inventory data, quality data, daily development requirements and technology plans openly its suppliers by making use of the real time windowpane information systems. Dell Company exceeded their customer feedback directly to their suppliers in order to be adjusted appropriately.

Flow of materials and information

The stream of materials and information in the dell works as follows. Customers can place their order either through internet or by phone. After that, Dell will process the order through configurations advancement and financial evolutions that may takes 3 to 4 days then they will send the order to its processing products in Austin. These vegetation hold the efficiency to create and package the product in only eight hours. The overall rule for the move of materials is first in and first out and according to Dell planning they'll dispatch the order within five days. Most of the suppliers basically situated in the Southeast Asia and it requires seven days to transport the parts to Austin range. The information about any new product will be accessible on the Dell websites and on the other information stations also. Dell offers a real advantage to the customers is they can directly put their order without any intermediate. The clients of Dell are global vast and range between small business, specific, organization like hospital and schools and large businesses. Dell produces the large range of the products which are useful for all your customers. Optiplex which is desktop PC mainly used for small offices, Vostro notebook series used for the offices, n series notebook completed with Linux used for the professional folks, Latitude notebook series for the business concentrated customers and there are many products which are used the customers corresponding with their needs. The function of Dell business is to produce a product at the earliest opportunity and without the defects so that their customers don't have any problem and their demand increase on the market. Dells mission assertion is to be the most successful Personal computer Company in the world by providing the best customer services. Michael Dell called this strategy as virtual integration with customers. Dell quite simply concentrates on the price tag on the inventory management because the set up units maintain these inventories for the few time and the company target is to lessen this cost. The business used the vendor management inventory agreement according to that they decide with their suppliers the amount of inventory so when to order these inventories. The company is also in a position to save the inventory cost by studying the previous season trend matching to which they will order the inventories.

Compare and compare dell with other companies

The main opponents of Dell Company are IBM, Apple and Hewlett Packard. Horsepower Company also used the concept of the direct selling but their main concentration on the needs of the customers. At the time of tough economy also the creation body of the Horsepower is very high because of its products which were made according to the demands of the clients at low cost. The other competitor of Dell is Apple. The merchandise of Apple fundamentally predicated on the new technology which brings a fresh revolution in the field of technology. Apple adopted the mix strategy for the supply chain management which will help them to reduce its inventory cost. IBM organized its supply chain strategy on the five themes or templates. They are source chain presence, customer requirements, cost containment, resource string risk management and globalization. The strategy which will adopt in future for the better source chain are better instrumentation, supply chain intelligence and enhancing integration.

SCM strategy followed by Dell

The SCM strategy accompanied by Dell is immediate selling model in which the dependence on the distributors and middlemen eliminated. Dell is convinced that by advertising the computers right to customers helps them to comprehend their needs and needs. To be able to maintain the low priced for the inventories, dell maintains good human relationships with suppliers. The procurement decisions of company were predicated on the conditions like cost, quality, technology and delivery. The business maintains a data source to visualize the purchasing habits of the customers and according to that they can forecast the needs. While using forecasting techniques, the company is able to determine demand with correctness of 75%. The business openly communicates with the suppliers on the changing demand pattern. Dell directly received the purchases through internet, mobile phone, email. The company also tries to keep up zero inventories for a few of the components. If the expense of inventory will decrease then it will decrease the product cost.


The company has encountered various issues in the year 2005 and 2006 because of the strategies implemented for the supply chain management. Dell lost its position and HP emerged as the greatest selling computer supplier. HP could move ahead of Dell by producing components at cheaper price and by increasing their supply string management strategy. The issues of Dell were the growing complexities in the creation of the products and the existing price system. At the same time, the sales figure of Dell Company was also dropped due to demand from the corporate sector received reduced. Based on the review conducted by CIO view in season 2006, the amount of money spend on the technology by Dell got reduced by 1. 3%.

Further recommendation

Dell should concentrate on providing the good facilities to the clients so that in future if tough economy takes place it will help the company to maintain its creation levels. The business should also look for new ways to reduce the cost of the merchandise and time of dispatching the products. The company is required to change its existing strategy of cost control centered model to the impressive based model according to the needs of the customers.

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