In 1999 Dell was known to be one of the USA’s number one best PC selling companies and number two globally. Starting with only a 100 computers as a personal company of a student called Michael Dell; it has now turned into a company of over 35,000 employees with 25,000 million dollar sales in the year 2000…
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In 2005, Dell became world’s third most favorite company in an industry where IBM and HP are regarded as its biggest competitors (Manataki, 2007). Over the years Dell has slowly enhanced its portfolio and included products with the likes of servers, workstations, printers, and PDAs, as well as flat-screen TVs and digital cameras as products and product lines respectively. In 2003, the company changed its name to Dell Inc. from the name of Dell Computer Corporation to support the statement of evolution from a mere computer manufacturing firm to the one that provides many technology-related services (Manataki, 2007). In Dell’s success, its strategic choices have been one of the major factors that highlight its supply chain as the basic reason to shine. Over the years, its supply chain has been examined and many have tried to incorporate the same model but of no avail. This means, that Dell holds a unique tool that has its own way of operating that cannot be copied easily. The basic elements of the model are the direct sales model called the direct model, and the build-to-order strategy (Manataki, 2007). B. An overview of the organization’s supply chain management efforts, including the organizational issues involved with the supply chain such as the organizational structure, the placement of supply chain management within that structure, and supply management’s relationship with other departments in the organization. As far as the organization’s supply chain management efforts and its issues are concerned, Dell experienced three basic variables to solve. Where at one end, Dell has continuously refined its portfolio with the direct model, providing two billion online customer visits, the supply chain design for the ever changing global environment handed the worry of multiple global customer groups, the global supply networks, multichannel sale, the product commoditization, and the changing markets on the other end (Davis, 2010). High cost of the supply chain was one of the biggest worries that were reduced to a low cost one. The focus has always been primarily on the efficiency with a CTO capability. This effort meant an overall toning down of the product design and the planning process along with the configuration management as well (Davis, 2010). Over the years, these efforts have sort of evolved through a slow process that can be highlighted through the organizational issues and the relationships it holds in the following lines. The entire supply chain adopted a customer-centric view of value, and has invested in several resources to obtain an analysis of its profitability, the insight in the market and business intelligence, summed up as identifying customer values. Dell then charted out its strengths and understood the external environment by analyzing its competitors, new entrants, and emerging requirements of the market to eventually designing the supply chain portfolio (Davis, 2010). [See Appendix figure 1] Of course the organizational structure and the relation of the supply chain with the rest of the department were always considered by Dell. This requires extensive cross functional collaborations by the company. With the transforming supply chain IT had to change, the finance department had to work on a CTS methodology where a full integration of product design with supply chain and go-to-market plans with sales and marketing were set according to the changing patterns in demand. [See Appendix for a detailed engagement] (Davis,
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(Supply Chain Management: DELL Term Paper Example | Topics and Well Written Essays - 2250 Words)
“Supply Chain Management: DELL Term Paper Example | Topics and Well Written Essays - 2250 Words”, n.d. https://studentshare.org/business/1396722-supply-chain-management.
Question 1. What Are The Specific Quality Problems Oak Hills Is Facing, And How Will They Influence The Company's Ability To Convert To A Lean System?
Answer: A supply chain refers to the network as well as distribution of facilities. Its main task is to acquire the materials, convert these materials into semi-finished as well as finished goods, and thus allocate the final products to the consumers.
Companies attempting to recognize costs, improve flexibility and responsiveness to changing customer demands, and also maintain competitive edge are moving toward establishment of a lean production and supply system. The lean supply chain is developed to remove waste within the operations cycle and also to maximize quality while allowing for allocation of capital investment to be distributed more effectively throughout all areas of business operations.
A good example of an international business venture is banana growing in Australia which has made the country gain a lot of revenue. This is basically what is going to be the main focus. Nature of the product and the supply chain Banana is the most consumed horticultural product in Australian market.
The rationale for gaining significance is its value, as organizations rely on processes of supply chain management, which is a core element and contributing factor, for gaining competitive advantage in the global market. In the context of operations and management, supply chain management is defined as “the management of the movement of goods and flow of information between an organization and its suppliers and customers, to achieve strategic advantage.
17-24). With the advent of IT, the competitive pressures on the four big players of the world, LG, GE, Whirlpool and Electrolux have increased. Whirlpool has a history of over a decade where it has established its brand name and expanded in many countries.
According to the author, supply chain management is the management of entire chain which includes organization’s inbound operations (procurement, manufacturing, servicing) and outbound operations (distribution and transportation). It is a network which flows from one pattern to another in order to maintain customer value and relationship.
Sophisticated supply chains include management of used products towards re-entry into the supply chain at points where residual values are recyclable. Supply chains form the fundamental link to value chains.
Hence, this ends up increasing the productivity of the company as well as the general performance of the company (Ducassy, n.d.). Corporate social responsibility being employed by various private sectors plays a major role in ensuring that the social cohabitation of
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