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The Supply Chain Of Dell Computers

3333 words - 13 pages

INTRODUCTIONMeeting customers' expectations and appealing to their needs and wants is the highest organizational objective for an ideal company. Where the aim is maximizing profits, management of supply is integral. Companies that maintain a robust supply configuration with minimal increase of cost to the customers are bound to be the most successful. In researching for this paper I found one company whose supply chain management struck me as being the most comprehensive and most efficient; that company is Dell Computer. Although its supply chain management is impressive, still there is room for improvement. This paper will present the situation analysis of Dell and will discuss the major issues and problems that Dell has been able to tackle or is yet to conquer in order to achieve its objectives. Where appropriate solutions for the major challenges will be analyzed and alternative solutions and recommendations will be given. Furthermore, the physical implementation route will be discussed and finally a conclusive summary will be given.Supply Chain Management DefinedSupply chain is basically an integration of how raw materials, intermediate products and final products are obtained, transformed, sold and how transport links between production locations and retailers are handled. It is the process of A to Z whereby a product is designed, raw materials acquired, product manufactured and distributed to retailers or shipped directly to customers. As products pass through the supply chain, value addition ought to be the company's major objective and the organization must correctly disperse the product in the proper quantity, accurate specifications and on a timely fashion. Last but not least, all these activities must be carried out and completed at competitive prices (http://www.duxbury.com).Dells' BackgroundDell is company started by Michael Dell in 1984 with the central theme of selling custom built computers directly to customers. Dell is currently the second largest dispenser of Computers and is a leading seller of IT systems globally. By January 2003, Dell employed more than 39,000 regular employees. As highlighted in ZDnet in 2002, Dell registered number seven on the list of most successful companies in 2001 in the Fortune Magazine; this was a clear indication that Dell must have been conducting its business in the most appropriate manner possible. This success was indeed a loud message that Dell was offering its customers ideal products at the ideal costs and in a timely manner. Many factors are at work here to afford Dell such a success however; it is undoubtedly that a robust supply chain configuration was at work. I have chosen to discuss Dell because there is a clear link between its outstanding performance and the style in which its supply chain is managed. However, as discussed above, there is still some room for improvements in the Dell supply chain management.PRODUCTSBelow is a presentation of the major products offered by Dell...

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