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Supply Chain Management of Dell

Discuss Supply Chain Management of Dell within the Elements Of Logistics forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Dell Inc: (NASDAQ: Dell, HKEX: 4331) is a American multinational information technology corporation based in Round Rock, Texas, United States, ...



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Supply Chain Management of Dell
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Supply Chain Management of Dell - December 29th, 2010

Dell Inc: (NASDAQ: Dell, HKEX: 4331) is a American multinational information technology corporation based in Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. Dell had 46,000 employees as of Jan. 30. About 22,200 of those, or 48.3 percent, were in the United States, while 23,800 people, or 51.7 percent, worked in other countries, according to a filing with the Securities and Exchange Commission.[citation needed] Dell is listed at #38 on the Fortune 500 (2010). Fortune also lists Dell as the #5 most admired company in its industry.

Dell has grown by both organic and inorganic means since its inception—notable mergers and acquisitions including Alienware (2006) and Perot Systems (2009). As of 2009, the company sold personal computers, servers, data storage devices, network switches, software, and computer peripherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce.

On May 3, 2010, Fortune Magazine listed Dell as the 38th largest company in the United States and the 5th largest company in Texas by total revenue. It is the 2nd largest non-oil company in Texas (behind AT&T) and the largest company in the Austin area.[3]

Started in Michael Dell’s dorm room at the University of Texas in 1984
Grossed $75 million in sales in 1985
Made the Fortune 500 in 1992
Ranks 2nd in computer sales

Michael Dell
College dropout
Changed how computers were sold
Started his business with $1000 in capital
Now worth $17.3 billion
How do they do it?
Dell’s success is a combination of:
Direct Sales
Supplier Integration

Together these allow for maximum effectiveness with minimum cost
Direct Sales
A direct sales system allows Dell to:
Cut costs
Build relationships with its customers
Deliver exactly what the customer wants
A build to order system allows Dell to:
Increase inventory velocity
Minimize inventory costs
Build exactly the computer that its customers want
Minimize the need for forecasting
Supplier Integration
Supplier integration allows Dell to maximize the benefit of its other core competencies

Here is how they do it:
Location of supplier warehouses
Meetings with suppliers

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