Why has Dell’s direct supply chain been so successful?

As the leader in the computer systems company, Dell is always looking for ways to reduce waste, time, costs, and pass that savings on to their customers. They have a continuous focus on their customers with their carefully tailored to fit standards-based computing solutions.

They are the worlds leading computer systems company. They design, build and customize products and services. From corporations to individuals in their homes. They believe that they are successful due to their consistent focus on customers through carefully tailored standards-based computing solution. They communicate directly with their customers through internet, person or phone. Understanding of their needs is instantaneous, it enables them to effectively and efficiently deliver world class products and services that keep their customers coming back time and again.

Today’s economy forces organizations to run their IT departments leaner, faster, and smarter with fewer people and lower costs. This requires greater productivity and increased efficiency and that requires IT solutions to deliver solutions straight to the bottom line. The kind of IT solutions that offer an overall low cost of ownership and big return on investments. Dell offers a complete product portfolio that is designed to drive down costs and help ensure interoperability. Each product adheres to the highest levels of quality and reliability through rigorous engineering, manufacturing, and testing processes. Technology business research continuously recognizes dell as the industry leader in enterprise product quality.

Dell products are manufactured at 6 facilities around the world. The process begins only after a customer enters an order and every system is built to order based on the customers specifications. This allows dell to provide customers with exactly what they want in their computer systems. Dell works closely with suppliers to minimize the amount of inventory by giving them long term volume forecasts. Their pull to order cycle, automatically requests the material needed for each order every two hours. The material is then delivered to the factory from their supplier’s logistic centers. Since there are no warehouses, parts inventories are low. This is Dells direct model at work and allows them to pass a substantial savings onto their customers while delivering product in a matter of days. Their commitment to quality is evident throughout each step of their manufacturing processes. From the moment a customer’s order is received it is tracked every step of the way through the manufacturing process. Through cell-based manufacturing, each operator builds a complete system. Every system is thoroughly tested before it goes to the customer. The focus on quality continues when putting the product into the box and loading it onto the truck.

Dell focuses resources on what matters to their customers. With a highly efficient supply chain and manufacturing organization a focus on standards based technology developed collaboratively with their industry partners and a dedication on reducing costs for businesses.

What are the main supply chain challenges that Dell is now facing? Provide your recommendations to solve them.

The issues that supply chain is currently experiences is essentially competing with the online market.

Why did Dell decide that selling its products via retail outlets was a viable solution? Do you agree with this distribution strategy? Why or why not?



Chopra, S. Supply Chain Management. [Capella]. Retrieved from https://capella.vitalsource.com/#/books/9780134732459/