I have never heard a real explanation. Close relationships with customers through direct sales, helps Dell precisely meet the demand and maintain low inventory as possible.
Dell believes that this is Dell supply chain real future dollar play and is working on driving its long term growth. Dell had record earnings in The cost reductions will come out of supply chain and support.
In fact, Simchi-Levi was a key consultant to Dell in its supply chain transformation, and helped Dell think through how many supply chains it needed and what capabilities were required for each based on unique "customer value propositions.
Dell recognized those answers and capabilities were different for its different customer segments and hence the supply chains it needed to build e. The only downside to this business model is the shipment time of about days, as PCs are made after an order is placed.
Really, really build the supply chain from the customer back. That required different supply chain strategies across multiple dimensions. What impressed me most in this great discussion was the way Dell attacked to challenge. Unbeknownst to many, until shortly before that, Dell for all its supply chain greatness, did not have a Dell supply chain integrated supply chain organization, or true "chief supply chain officer.
I really loved the customer-centric approach along each stage in the customer lifecycle "I need a solution"; "My order is in production"; etc. Dell, a 57 billion dollar industry, employs its supply chain systems unlike any other PC maker on the planet.
Whether Yes Dell supply chain No, what is your reaction to this summary or the material presented? Many if not most of us have heard of the concept of "Voice of the Customer," if not been actually involved in such exercises.
From my view, the key lessons are these: This helps to lower cost and drive revenue. When we connected with Dell on this broadcast, I was a little surprised, as Dell had been largely quiet about its supply chain since it announced its major change in strategy in Also since limited configurations are produced, you know exactly what is inside each system, which makes maintenance and troubleshooting for the original equipment manufacturer OEM less complex.
To grow, Dell had to expand its customer value proposition to reach different market segments. Reader Feedback I frankly learned a thing or two. With this new build-to-order BTO model complementing its existing CTO model, Dell hopes to provide a wider spectrum of options that will be available for customers to choose from.
Interesting reading, for sure, but how many companies have really worked their way through that? The slide below is taken from the Videocast. Might not Dell need new supply chains for say mobility products, or who knows what down the road besides PCs sold direct and those sold through retail?
Build separate supply chains to meet distinct product-market needs, but look for synergies to reduce complexity and cost. There was a significant portion of the market, especially globally, that wanted to buy a different way.InDell and other leading electronics companies joined forces and founded the Responsible Business Alliance (RBA), a nonprofit organization with a common goal to use shared standards and tools to advance social, ethical, and environmental responsibility in the global electronics supply chain.
We expect our supply chain partners to meet the same standards we hold ourselves to. Diversity As a member of the Billion Dollar Roundtable, Dell is committed to significant spending with women- and minority-owned business as well as small businesses. Dell has realized this from initial and so by putting more emphasis on its logistics, supply chain management and direct sales strategies it has become one of the most successful PC companies in the world.
DELL’S VALUE CHAIN • Dell’s value chain is a chain that brings value from supplier to the customer and provides Dell with a competitive advantage.
8. DELL’S VALUE CHAIN • Inbound logistics. I frankly learned a thing or two. When Dell announced in that it was moving into the retail business and making other related changes to its supply chain, it really did seem to me like the end of an era.
Dell's responsible supply chain Responsibly sourcing minerals in our supply chain By integrating the best practices of Dell and EMC, we continue to strengthen our approach to ensuring the minerals in our products are responsibly sourced.Download