Dell Case Study

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In modern life, more and more companies are try to make their supply chain strategy more efficient and enhance the weight of electronic commerce in order to reach more consumers in the competitive market. Dell is a really successful company that can be a example of this topic. “Dell is a computer technology corporation that develops sells, repairs and supports, computers and computer related products” (Dharmawardana, 2013). While computer is the main product they are selling on electronic business platform that consumer can choice what they want by customization tool for computer (Carayannis & Alexander, n.d.). It is a really good strategy for electornic business because Dell also integrated their electornic business website with their whole …show more content…

The first is to reduce high inventory and increase return on capital employed. Dell has cut the warehouse in the supply chain in order to reduce the cost and more efficient, so they must need to reduce high inventory. As for inventory in vendor warehouses, Dell can keep inventory only about 8-10 days, while other company is still hold inventory about 20-30 days (Christopher, 2005). It is a challenge job for Dell because they need to trust all suppliers and make process really efficient. Another challenge is to set a common objective for all departments. In order to achieve the goal of the strategy, Dell needs to cooperate with all apartments and suppliers that should a same goal. It is really difficult because each company have their own objective and value of business, so Dell has conquered the challenge for the integration of supply chain. Lastly, cut retailers and distributors is also a seriously challenge for integration of supply chain. Also the suppliers of Dell have drooped from 204 companies in 1992 to 30 companies in 2003 (Christopher, 2005). Because Dell wants to reduce the cost on the channel of selling, so they must be give up some relationships of retailers, even they have good experience of cooperation, so they must loss some trust and relationship with their partners of distribution, however it is also a hard job for

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