Dell Computer Supply Chain Management
Table of Contents
Executive Summary 3
Focus of the Proposal 4
Research and Analysis:
Dell¡¯s Competitive Advantage 6
Dell¡¯s IT Tools 9
Dell¡¯s Business Model 14
Dell¡¯s IT Infrastructure 18
Our Recommendations&nbs...
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Dell speeds web site hosting setup, expands option; lower prices, availability of PowerApp servers broadens DellHost services. Edge: Work-Group Computing Report. May 22, 2000, Retrieved, April 5, 2004.
Dell selects Altiris recover solution to provide desktop and notebook customers with integrated backup and disaster recovery. EDP Weekly's IT Monitor.
August 18, 2003, Retrieved, April 5, 2004.
New Servers: Dell defines a new combination of power and value with PowerEdge
1300 workgroup server. EDGE: Work-Group Computing Report, Retrieved, April 6, 2004.
Now referring to Blue Bell Company, the shift in supply occurs when they decide to recall all their products and re-evaluate it. Blue bell will more than likely increase the price of the remaining items in the market. This is the result of consumers still providing a high amount of demand for ice cream even though there is less to supply. This theory can be accurately applied to this situation because there is no other solution that they can do to combat the consumers’ need of ice cream. For example, if they do continue to sell at the same price, soon they will not be able to produce as much as consumers want thus eliminating the good from the market.
The company whose supply chain that I chose to evaluate was Lockheed Martin. Lockheed Martin is a company that is headquartered in Bethesda, Maryland, and they specialize in global security and aerospace. They employ approximately 97,000 people around the world and to a large extent are engaged in the research, design, development, manufacture, integration and sustainment of various advanced technology systems, products and services. Their mission specifically involves solving complex challenges, advancing scientific discovery and delivering innovative solutions to help their customers keep people safe. The vision Lockheed Martin has is to be the global leader in supporting their customers' missions, strengthening security and advancing scientific discovery, while their values include doing what's right, respecting others, and performing with excellence. As a global security, innovation, and aerospace company, a vast majority of Lockheed Martin's business is with the U.S. Department of Defense and U.S. federal government agencies. In addition, Sikorsky (a Lockheed Martin Company) dispenses military and rotary-wing aircraft to all five branches of the
Lockheed Martin’s supply chain is responsible for approximately $11.2 billion annually with nearly 1,500 production suppliers and 900 non-production suppliers all over the world (Lockheed Martin, 2014). Lockheed Martin designed their supply chain using lessons learned from preceding programs, that addressed on-time delivery, and quality assurance. Once a contract is signed with a supplier, Lockheed Martin issues a Material Resource Planning requirement to initiate the procurement process. Engineers travel to each of the sub-contractors and perform quality and reliability testing on their components. ALIS has increased the overall effectiveness of the supply chain by automating tracking of parts. Lockheed Martin has also increased
...ucceeded. All the advertising emphasizes the chef and the food, but is that really what the public comes for? Absolutely yes, that's what people come for. As an evidence of the above statements, I have shown the chart of last 10 years Net Sales of Benihana which has almost tripled. The net income has risen from $4.95 million in 1997 to $14.56 in 2006.
Michael Dell, who is the founder of Dell Computers, began his venture towards revolutionizing the computer industry in 1980. In 1980, Dell purchased his first computer; an Apple II, and took it apart to understand how it was designed and made (Dell & Fredman, 1999, p. xi). In 1981, IBM introduced the Personal Computer (PC) and Dell saw this as a business opportunity. Dell switched from the Apple computer to the IBM PC and began to learn all of the possible components. Michael Dell’s hobby was to disassemble computers, rebuild them with improved components, and sell them directly to the user according to the biography by Mr. Dell in Smart Computing (2007). “Traditionally, in the computer industry, manufacturing companies built computers, which were distributed to resellers and dealers who sold them to businesses and individual consumers” (Dell & Fredman, 1999, p. 11). Dell noticed that IBM also sold their computers to through the distribution method, and in 1984, Mr. Dell made his business venture official. The original name for Michael Dell’s company was registered in the state of Texas as “PC’s Limited.” The organization transformed and renamed the company to Dell Computer Corporation in 1988.
Supply Chain Management plays a vital role in our hospitals today. With the growing cost of healthcare and new technologies, it is vital for hospitals to run as efficiently as possible without jeopardizing care. To the materials manager and to the financial minds of a hospital the area of supply chain is a tedius task at best, the kind of planning, strategizing and measuring that seldom goes recognized and rewarded. The work involved with inventory control fits tightly within that description.
Before we start, we would like to briefly introduce the definitions of Supply Chain and Supply Chain Management (SCM).
Dell Computers Strategy Global companies play an important role in the business environment, because they connect their businesses together around the world. A good example of a global company is Dell Inc., an American computer-hardware company, headquartered in Austin Texas, which develops, manufactures, sells and supports a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and more. They design, build and customize products and services to satisfy a range of customer requirements: from the server, storage and Premier Services needs of the largest global corporations, to those of consumers at home. According to the Fortune 500 2006 list, Dell ranks as the 25th-largest company in the United States by revenue.
Traditional manufacturing is described just as it is stated, “traditional”. The process starts when a product is to be produced and needs the manufacturing process to create the product for the customer that is, or will, order(ing) the product. Manufacturing processes are the steps through which raw materials are transformed into a final product. The manufacturing process begins with the creation of the materials from which the design is made. These materials are then modified through manufacturing processes to become the required part. Manufacturing processes can include treating (such as heat treating or coating), machining, or reshaping the material. The manufacturing process also includes tests and checks for quality assurance during or after the manufacturing, and planning the production process prior to manufacturing (Chegg, 2013). The inventory of raw materials will need to be kept on hand in order for the product to be assembled when it is needed for inventory refill. The main problem it inherently possesses is that of raw material overstock and that of finished product overstock that needs to be sold. If a product has completed its journey through the raw-to-finished material process and the products sales go down, the product will take up precious space in storage that could be filled up with other newer and/or more popular products that will move more quickly. This is the reason Dell has adapted to include just-in-time manufacturing in its product assembly.
Distribution channel deals with the delivery of the product to the customer. How good the distribution channel is, depends how effectively the channel fulfils the customers need of time utility and place utility as well as keeping the channel structure under manageable levels.
Dell Computer have recently announced changes to their business strategy and supporting supply chain. They will no longer focus on a made to order direct sales model for their personal computers. Nor will they continue to refine their renowned supply chain model that supported their sales model. Instead, they will be looking to produce personal computers with fixed configurations at lower prices. This essay looks at why Dell have changed their strategy, and then considers the customer value proposition of the new strategy, as well as lessons that other organisations can learn from the Dell experience.
UK Morepeth facility, the company’s ability to integrate over seas businesses and ramp up of
“The Dell Theory of Conflict Prevention argues that no two countries that are both part of the same global supply chain will ever fight a war as long as they are each part of that supply chain.” (Friedman 170) The supply chain, being the complex system in which we transfer parts and other things throughout the world in order to build a finished product. Thomas Friedman gives an example of the supply chain with his experience of getting a computer built by Dell in Emerging: Contemporary Reading for Writers. This sets the groundwork for Friedman’s theory and also the McDonald’s Theory of Conflict Prevention. The McDonald’s Theory and the Dell Theory are of the same skeleton, both have the same premise and try to both play on your emotions. The
Competitive strategy is the approach that an organisation takes in order to gain advantage over its competitors. According to Porter, there are two major sources of competitive advantages: costs and differentiation. Cost-based competitive advantage involves reducing production costs so that an organisation can earn higher profit margin or offer products at lower price compared to competitors. Differentiation-based competitive advantage involves offering unique properties that are not offered by competitors’ products. Differentiation allows an organisation to charge a premium for their products because they offer additional benefits to buyers.
“The Dell Theory of Conflict Prevention,” is a theory that is approved by multiple famous authors. The theories main points are valuable and the theory should be looked upon more seriously. In Thomas Friedman’s essay, “The Dell Theory of Conflict Prevention,” he gives examples of how global supply chains would be constructive to promoting world peace. Friedman feels that if everyone is an ally to each other in some shape or form, then no one will want to engage in war. Madeline Albright would agree with Friedman’s theory according to her writings in “Faith and Diplomacy.” Albright felt that religion should play a factor in the diplomatic system of America, in order for us to maintain some kind of peace with other nations. Friedman and Albright both were looking for a solution to world peace. Albright would agree with this theory from the religious perspective. Appiah argued that an ideal global citizen would be essential to America, in his essays “Making conversation” and “The Primacy of Practice.” Appiah felt that people must have an understanding of each other in order to get along with each other. Both Appiah and Albright would agree with “The Dell Theory of Conflict Prevention.” “The Dell Theory stipulates: No two countries that are both part of a major global supply chain, like Dell’s, will ever fight a war against each other as long as they are both part of the same global supply chain”(Friedman 125).