The Supply Chain Management Activities of Dell - Case Study Example

The paper "The Supply Chain Management Activities of Dell" is a good example of a case study on management. In recent years, supply chain management has emerged as one of the most important issues for organizations (Christopher, 2011). To gain a competitive edge over the competitors, companies today are striving to meet the needs and expectations of the customers. Success in doing this is founded upon developing business processes and activities that can strategize, manufacture and deliver the creative, innovative, low-cost as well as quality products and services (Esper, Fugate and Davis, 2007). Supply chain management is a recent business concept that can be defined as the process of networking and integration of organizations that are involved in bringing a commodity or service to the customers.

The concept of supply chain management involves the life cycle activities and processes that guarantee customers receive products and services at a value they demand (Green, Whitten, and Inman, 2008). Supply chain management creates a competitive advantage to a service or manufacturing organization hence completely differentiating itself from its competitors with regard to the perspectives of its customers. Therefore, it gives organizations a particular emphasis on low-cost operations which brings about high-profit levels (Mentzer, Stank, and Esper, 2008). Dell has realized the importance of supply chain management and has put more emphasis on this concept which has made it to be among the most successful Personal Computer companies globally (Davis, 2010). Due to Dell having one of the most successful supply chains, it makes it a good choice for this study.

The objective of this report is to describe the supply chain management activities of Dell. This report will provide an overview of Dell Corporation and will describe the supply chain elements of the company including sourcing and purchasing processes, manufacturing activities, distribution, retailing activities, and collaboration arrangements with the suppliers and customers. The report will also utilize SWOT Analysis in analyzing the supply chain elements of Dell. Lastly, the report will highlight some recommendations for the improvement of the supply chain system.

• Company’s Overview

Dell Global is an American multinational corporation that deals with computer products and services (Kraemer and Dedrick, 2002). The company sells and repair computer-based products. It was founded by Michael Dell and is considered among the biggest technological companies in the world. It has over 103,300 people and operates globally in different countries. As part of its expansion strategy, Dell entered into the Australian market where it has seen success in terms of sales and profits (Dedrick and Kraemer, 2007). Dell Australia was established in 1993 and has expanded its operations in cities in Sydney, Canberra, Brisbane as well as Adelaide. Dell Australia has grown in relation to the maturity of capabilities and technologies. Dell Australia has also grown in its products and services offering and customer service (Kraemer and Dedrick, 2002).

Dell Inc. is responsible for selling personal computers, MP3 players, cameras, software, servers, and printers among others. Before, the company was just a hardware vendor until 2009 when it entered the IT market. Dell has since expanded its portfolio and has enjoyed financial success (Kraemer and Dedrick, 2002). The company was established in 1983 as a personal computer company in the United States. In the 1990s, Dell was suffering from low-profit margins but in 2004, the company started to enjoy steady growth and high-profit margins as a result of acquiring market share from competitors. In 1999, the company surpassed its major competitors such as Compaq and HP to become the leading personal computer manufacturer in the world. Over the years (Kraemer and Dedrick, 2002), Dell has expanded its product portfolio to include servers, MP3 players, televisions, and printers among others. The company has seen huge growth and expansion and success as a result of acquisitions. Over the years, the company has acquired companies such as Alienware, StatSoft, Gale Technologies, and Quest Software. In 2015, the company acquired EMC at $67 billion (Kraemer and Dedrick, 2002).