Dells Value Chain - 1067 Words

Dell’s Value Chain 1. How has Dell used its direct sales and build-to-order model to develop an exceptional supply chain? Dell has used its direct sales and build-to-order model to develop an exceptional supply chain by taking customer feedback very seriously. Dell uses the feedback to further evaluate and when necessary, implement change to improve their supply chain. The company maintains close-knit relationships with customers, and maintains very close, professional relations with their suppliers. Dell collects a larger amount of customer information than is the industry norm. This also works to the company s advantage. The close-knit relationships with customers that Dell maintains allow the company to determine what products†¦show more content†¦The greatest advantage Dell experiences are the direct elimination of all retail and distribution costs for their products. Because Dell does not have to operate multiple locations, warehouses, etc, they can offer their products at lower prices, w hich attract even more consumers. Dell does not have the same high fixed expenses that their competitors have, who operate multiple factory locations. Dell also competes with retailers who already have a stock by doing just the opposite - not carrying a stock. When a consumer wants a particular model of computer, the retailer must have the item in stock. When a customer shops at Dell, the customer designs exactly what they want. A customer can design a very basic, bare-bones model, or a model that includes almost limitless options. The computer is then built in a matter of hours. The customer has his or her own, custom-designed system in a matter of a few days. There is no waiting for out-of-stock products, and Dell holds minimal inventory by utilizing such a well-designed system. 5. How does Dell s supply chain deal with the bullwhip effect? The Bullwhip Effect in itself is a situation whereby the variation in orders is heightened as it gradually moves up the supply chain through a specific process. The process moves from consumer to distribution, and then moves to suppliers. To deal with the Bullwhip Effect, Dell is open with sharing knowledge with theirShow MoreRelatedDells Value Chain1517 Words   |  7 PagesThe value chain was a concept initially proposed by McKinsey and later developed and made public by Harvard strategy guru Michael Porter. According to Porter, the value chain is defined as the complete flow of products from the suppliers to the customers and management of the information flow in a way that maximizes the consumer satisfaction with the increase in the profit margins of the company. Simply, it includes a series of value-adding activities connecting a company s supply side (raw materialsRead MoreDell Value Chain1717 Words   |  7 Page sVALUE ADDED CHAIN IN DELL SUBMITTED BY: SIDDHARTHA DAS ROLL NO: 32 BATCH: PGDM (FM) 2010-12 SUBJECT: Project and Infrastructure Management: Financing, Implementation and Control Table of Contents Sl.No. | Description | Page No. | 1 | VALUE CHAIN ANALYSIS | 3 | 2 | VALUE CHAIN IN DELL | 4 | 3 | DIRECT SELLING STRATEGY OF DELL | 5 | 4 | COMPONENTS OF DIRECT SELLING STRATEGY | 6 | 5 | ADVANTAGES OF VALUE CHAIN OF DELL | 8 | 5.1 | CONCLUSION | 9 | CHAPTER-1 What is ValueRead MoreCase Study - Dell Value Chain1171 Words   |  5 Pagesexceptional supply chain? The many challenges in order to improve the supply chains usually come with the unidentified. Many companies produce products they think their consumer will want. After that, they ship their products to retail stores. Then, these stores try to sell the products to the customers. Here, the supply chains slows down as they are figuring out what to build next. Then, these companies deal with their suppliers to get the materials for the products. Here, the supply chain slow down moreRead MoreDell s Value Chain For The Profitability Of The Company899 Words   |  4 Pagesthat has maximized its value chain for the profitability of the company. This paper will analyze the unique value chain of the company. Furthermore, the paper will evaluate how Dell has used its direct sales and build-to-order model to develop an exceptional supply chain. The main advantages and disadvantages of Dell’s direct sales model will also be analyzed. Also noted is how Dell competes with other retailers t hat already have stocks in house and how Dell’s supply chain deals with the bullwhipRead MoreDell Competitive Advantage and Value Chain Analysis1544 Words   |  7 PagesStrategic Management: Dell Value Chain Activities Analysis INTRODUCTION According to Porter the value chain is defined as the complete flow of products from the suppliers to the customers and management of the information flow in a way that maximizes the consumer satisfaction with the increase in the profit margins of the company.(ivythesis,2009) Dell’s value chain is one of a kind, they outsource all there components across the world and then assemble and sells it directly to the customers. DellRead MoreValue Chain By Michael Porter2187 Words   |  9 PagesValue Chain Analysis Value Chain is a strategic tool to measure the importance of the customer’s perceived value in value chain analysis. By enabling companies to determine the strategic advantages and disadvantages of their activities and value-creating processes in the marketplace, value chain analysis assumes critical importance in assessing competitive advantage. The dissertation explores the different elements of the value chain of computer hardware and behemoth Dell and seeks toRead MoreDells Supply Chain Management2081 Words   |  9 PagesDirect Sales and Build-to-Order Model: Dell’s computers, workstations, and servers are built-to-order and none are produced for inventory purposes which clearly cuts Dell’s cost on inventory. Dell customers could order through their website or even via phone, custom-made servers and workstations based on the needs of their applications. For desktop and laptop, customers are able to order whatever configuration of microprocessor speed, random access memory (RAM), hard-disk capacity, CD-ROM driveRead MoreDells Supply Chain Strategies39734 Words   |  159 PagesKnowledge-Based Analysis and Modelling of Dell’s Supply Chain Strategies Areti Manataki Master of Science Artificial Intelligence School of Informatics University of Edinburgh 2007 Abstract Supply Chain Management is becoming more and more important for the success of today’s business world. Dell has realized this trend from its very first steps and has become one of the most successful PC companies in the world by putting emphasis on its supply chain, orchestrating its build-to-order andRead MoreFord s Current Existing Supply Chain Condition1759 Words   |  8 Pagespretty long time analyzing Ford’s current existing supply chain condition. I immediately became aware of its highly complex environment. This high level of complexity combined with other external and internal factors. These factors push Ford to search for the best solutions in order to overcome the costly supply chain issues that they are facing and may continue encounter in the future. Ford’s major challenges in their current supply chain system is: the inefficient and uneffective control of theirRead MoreValue Chain Analysis : The Computer Industry Essay3769 Words   |  16 PagesValue Chain Analysis Introduction The Computer industry has been on a never ending expansion and growth owing to its technological advances and varied innovation experienced ever since its incorporation. The industry despite of being extremely profitable is also having an extensively competitive market. Despite of the large industry size and the emerging new entrants Dell has been able to sustain its market position with fair growth ever since its incorporation in 1984. Michael