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www.a2zmba.com
www.a2zmba.com DELL COMPUTER CORPORATION . ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],www.a2zmba.com Best of 2003 Service and Support Site. (Computer Shopper Magazine, February 2004)
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.a2zmba.com 2006 Sales (mil.) $55,908.0 1-Year Sales Growth 13.6% 2006 Net Income (mil.) $3,572.0 1-Year Net Income Growth 17.4% 2006 Employees 66,100
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.a2zmba.com ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DELL -- BANGALORE www.a2zmba.com ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
KEY TO SUCCESS……MINIMUM INVENTORY! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.a2zmba.com
INVENTORY MANAGEMENT www.a2zmba.com
Customer places an Order (By phone or through the Internet on www.dell.com) Dell processes the order  Financial evaluation   (credit checking)  Configuration evaluations  (checking the feasibility of a specific technical configuration)  Sends the order to assembly  plant  (any one in Austin, or any other) Plants build, test & package the product  (about eight hours) Dell typically ship all orders (no later than five days after  receipt) www.a2zmba.com 2-3 days through General rule for production is first in, first out  SUPPLIERS REVOLVERS CUSTOMERS
www.a2zmba.com Build-To-Order  Model Value Chain Program Revolver  or SLCs (Supplier Logistics Centers)
Build to order ,[object Object],[object Object],[object Object],[object Object],www.a2zmba.com Dell’s Inventory Management……
Revolvers (for “revolving” inventory) ,[object Object],[object Object],[object Object],[object Object],www.a2zmba.com Supplier Manufacturing (SLC) Warehouse Factory / Merge Center Material Transfer
Customer Local Suppliers Dell Factory Lean Inventory Model…… Revolvers (SLCs) Suppliers 3 days of inventory - Inventory turns of 122 per year  Delivery Supplier Owned Dell Owned www.a2zmba.com
DELL’S Inventory Model……….. ,[object Object],[object Object],[object Object],[object Object],[object Object],www.a2zmba.com
DELL’S Inventory Model……….. ,[object Object],[object Object],[object Object],[object Object],[object Object],www.a2zmba.com
I2 TECHNOLOGIES ,[object Object],www.a2zmba.com On a high level, the supply chain process is comprised of two steps: 1.  Planning  – which involves getting the needed  materials  positioned at SLC’s near the appropriate Dell factories. 2.  Execution  – which involves having the right materials on  and  at the factory to build each customer’s order.
Value Chain Program ,[object Object],[object Object],[object Object],[object Object],[object Object],www.a2zmba.com DELL’S Inventory Model………..
SUPPLIERS  SELECTION AND EVALUATION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.a2zmba.com
ADVANTAGES  ,[object Object],[object Object],[object Object],[object Object],[object Object],www.a2zmba.com

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Dell's Build-to-Order Model and Inventory Management Success

  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 9. Customer places an Order (By phone or through the Internet on www.dell.com) Dell processes the order Financial evaluation (credit checking) Configuration evaluations (checking the feasibility of a specific technical configuration) Sends the order to assembly plant (any one in Austin, or any other) Plants build, test & package the product (about eight hours) Dell typically ship all orders (no later than five days after receipt) www.a2zmba.com 2-3 days through General rule for production is first in, first out SUPPLIERS REVOLVERS CUSTOMERS
  • 10. www.a2zmba.com Build-To-Order Model Value Chain Program Revolver or SLCs (Supplier Logistics Centers)
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  • 13. Customer Local Suppliers Dell Factory Lean Inventory Model…… Revolvers (SLCs) Suppliers 3 days of inventory - Inventory turns of 122 per year Delivery Supplier Owned Dell Owned www.a2zmba.com
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Hinweis der Redaktion

  1. Supply Chain Management briefly described: Our planning processes “push” components into a supplier logistics center (SLC) awaiting a “pull” signal generated by the replenishment processes in our manufacturing plants. The SLCs are managed by a third party logistics provider. Inventory in the SLC’s is owned by our suppliers - there is an average of 8 or 9 days worth of inventory in the SLC. Local suppliers provide support through Vendor Managed Inventory programs. The results of this simple yet effective supply chain model is inventory turns of 91.25 (or over 90 times a year). In addition we incur an error and omission expense of only 5 hundredths of one percent, and we have experienced 8X productivity improvements over the last three years. The benefits to you of this case studied model is high quality, fast to market with new features, we build-to-order and don’t have two or three months of inventory in the channel which we’re trying to pawn off when new features are introduced into the market by our suppliers, and lower cost operations means lower priced products.