Logistics Management – Case Study Analysis

This case study analysis discusses the challenges faced by Dell in its supply chain process and proposes logistical measures to resolve them. It explores the benefits of Dell's supply chain management process, the issues faced, and suggests strategies such as real-time inventory management and monitoring vendor performance.

Running head: LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
Logistics Management – Case Study Analysis
Name of the Student
Name of the University
Author Note

1LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
Executive Summary
Dell is one of the largest producers of computer and computer related solutions in the
whole world. The Dell laptops and desktop computers as well as batteries are well known for
their high quality and their extensive shelf life. Indeed those who use Dell products are
guaranteed of good results where efficiency is concerned. The supply chain process of Dell is
smooth and efficient with useful techniques and methods being used by the company to
ensure effective communication with suppliers and customers (based on case study provided)
This report discusses the challenges that Dell has recently faced in its supply chain process
and proposes a number of logistical measures that can be put in place to resolve such
challenges.

2LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
Table of Contents
Introduction................................................................................................................................4
1. Benefits of the Supply Chain Management Process of DELL Computers.........................4
1.1. Full Visibility...............................................................................................................4
1.2. Standardization............................................................................................................5
1.3. Single User Build Techniques instead of Traditional Assembly Line Techniques.....5
1.4. Use of Modular Manufacturing Processes..................................................................6
2. Issues and Problems Faced by Dell in its Supply Chain Process.......................................6
2.1. Problem of Faulty Laptop Batteries............................................................................6
2.2. Challenges posed by Innovations in Technology........................................................7
2.3. Challenge posed by Increasing Competition...............................................................7
3. Logistical Strategies that can be Put in Place to Resolve the Issues and Problems Faced
by Dell........................................................................................................................................8
3.1. Inventory Management in Real Time..........................................................................8
3.2. Monitoring of Vendor Performance............................................................................8
3.3. Raising Cost Awareness..............................................................................................9
3.4. Introducing Streamline Accounting............................................................................9
3.5. Just in Time Inventory Management and Manufacturing.........................................10
3.6. Use of Real Time Reports.........................................................................................10
3.7. More Transparency in the Supply Chain...................................................................10
3.8. Introducing Automatic Purchasing............................................................................11

3LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
Conclusion................................................................................................................................11
Introduction
Dell is one of the largest software companies in the world that is well known for its
high tech laptop computers and laptop batteries, among other products. Dell creates products
of value for its customers, with its computers being characterized by all the features
necessary to make their use a smooth and convenient affair for customers. The supply chain
management system that is followed by Dell Computers, is particularly well known because
of the transparency that is deployed by the company’s management is making sure that
purchasing patterns are visible in real time and that customers are directly communicated
with. Yet there are a number of issues that the company has also been faced with recently,
when it comes to its supply chain process that need to be addressed immediately if the
company is to avoid incurring liabilities and obstacles in its supply chain activities. This
report outlines the various benefits associated with the supply chain management process that
is followed by Dell Computers, identifies the issues that the company has been faced with
lately where it supply chain management is concerned and recommends a number of
important logistics and supply chain management strategies that the company can put in place
in order to make sure that it does not face issues with its supply chain management again.
1. Benefits of the Supply Chain Management Process of DELL Computers
1.1. Full Visibility
Full visibility is provided by the Dell Company along the supply chain, with production
systems and sales being linked to suppliers who are responsible for supplying all components

4LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
for the running of the business just in time, more often than not, to the client directly or to the
production line, with the lead time in this respect being of quite a short duration, sometimes
as short as one hour. As a result the warehouse space that is required by a company like Dell
for its inbound needs is very limited. Such suppliers constitute the key to the success that is
experienced by the company, by providing materials or supplies of the quality and standard
that is expected by Dell customers all around the world (based on case study provided)
The supply chain process is one that is fully visible, largely because of the fact that Dell
takes recourse to the internet for carrying out its supply chain activities. Buyers get to
communicate directly with the company officials and purchasing needs and requirements are
those that can be easily viewed in real time as a result of this (based on case study provided)
1.2. Standardization
Dell is a company that is well known for having introduced the process of standardization
as well as postponed manufacturing in the electronics industry, a process that is also known
as mass customization. The process entails the production of a certain number of common
platforms, all of which are then customized in accordance with the needs and demands of
customers (based on case study provided)
Prior to the standardization process, multiple product lines are situated at the downstream
and upstream ends, while after the standardization process, different product lines at the
upstream end are reduced drastically and the products get customized only at the downstream
end, at a t time when the customer orders become visible. There are many benefits that are
associated with this particular strategy. For one, common components are shared along
product lines, which in turn brings about a reduction in stock keeping units that are to be
carried. Such a strategy is being increasingly adopted as well across a wide range of sectors
such as in the fashion industry and the automobile sector (based on case study provided).

5LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
1.3. Single User Build Techniques instead of Traditional Assembly Line
Techniques
The manufacturing associates of Dell are capable of producing as many as sixteen to
seventeen desktop computers at a time using the single person build technique instead of the
conventional assembly line techniques that are so commonly deployed in the supply chain
management process. As a result, product quality is something that is always assured on the
part of the Dell Company, and job satisfaction is also something that is ensured for the people
who are working at Dell. By making use of novel techniques and methods, Dell employees
are able to come up with innovative products that really stand out in the market and give
plenty of competition to the company’s rivals in the business (based on case study provided)
1.4. Use of Modular Manufacturing Processes
Modular manufacturing processes are deployed that entail the use of standardized
components, which go into the building of vanilla products, which in turn are customized for
the market. The use of modular manufacturing processes goes a long way in giving Dell
computers and other products the uniqueness and diversity that is needed in order for the
company to be able to take on its competitors with success. Customized products are always
preferred by customers over and above standard products that they can buy from any software
company (based on case study provided)
2. Issues and Problems Faced by Dell in its Supply Chain Process
Although the Dell supply chain process is one that is characterized by a number of
benefits, there are issues and problems that the company has had to deal with as well, as far
as this is concerned (based on case study provided)

6LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
2.1. Problem of Faulty Laptop Batteries
There are problems that have been incurred by Dell, as far as the production of laptop
batteries is concerned. Of late, the company has ended up manufacturing quite a few faulty
laptop batteries, something that has not been well received by its customers at all. The fact
that the company has manufactured faulty laptops is something that has resulted in a lot of
negative publicity for the company. Dell has lost face in the international market because of
this, primarily because it has ensured a high standard and quality for its software solutions
and customers did not ever expect that the batteries manufactured by Dell would turn out to
be so defective in nature. As many as four million laptop batteries were recalled by Dell
because of the numerous defects that were seen to surface in the production of such batteries
for the international market, leading to a huge loss for Dell. The recall took place in 2006, a
time when the company came in for a lot of flak because of the low standard and quality of
its batteries, because Dell products are relatively highly priced, and a poor quality or standard
of service is something that the company’s customers worldwide were not ready to condone
at all (based on case study provided)
2.2. Challenges posed by Innovations in Technology
The Dell Company has also been facing a number of issues due to innovations and
changes that have been brought to the supply chain process as a result of advances in
technology. Technological changes in the use of apps and app based services and the
preference for computer products that are more affordably priced by Dell competitors is
something that is posing to be quite a serious challenge for the company, making it wonder
how it can come up with quality desktop and laptop computers and batteries without
requiring customers to pay too high a price for this purpose (based on case study provided)

7LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
2.3. Challenge posed by Increasing Competition
Competition in general is something that has increased a lot in recent years for all
suppliers and manufacturers of computers and computer related products and Dell is no
exception. There are many companies in the market now that offer computers, both desktops
and laptops, that are largely similar to the computers which are manufactured by Dell, but
which tend to cost much less than the Dell computers do. Such computers also come with
extensive warranty options, giving customers full or more value for the money they spend on
such products, creating problems for Dell in the process (based on case study provided).
3. Logistical Strategies that can be Put in Place to Resolve the Issues and Problems
Faced by Dell
3.1. Inventory Management in Real Time
Inventory management in real time is something that Dell can take recourse to, in order to
give its employees more time needed to focus on the production of quality computers for the
market. Inventory management is a process that traditionally involves the use of hand
checked lists and spreadsheets. ERP software in the present day however, contains features
that allow for exact inventory levels to be viewed in real time. The limited scalability that is
associated with the inventory management process traditionally is not something that one can
experience when using modern ERP software. Such software has unlimited flexibility and it
is something that a dynamic business like Dell needs, in order to cater to the ever growing
needs, desires and requirements of its customers in the best possible way (Christopher 2016).
3.2. Monitoring of Vendor Performance
Monitoring vendor performance is also something that the Dell Company needs to do in
order to make sure that the supply chain management process of the company is one that is

8LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
carried out with glitches. Success supply chain processes are those that are more often than
not, associated with outstanding vendor performance. The vendor performance has to be
monitored as well as rated using a number of robust metrics that are made available via ERP
systems. By just clicking the mouse for a few times, the management of the Dell company
will be in a position to review vendor error rates and vendor cycle times a lot more easily
than usual (Frendedall and Hill 2016).
3.3. Raising Cost Awareness
Raising cost awareness is something that also definitely needs to be done, if Dell is to
make sure that its supply chain process is as smooth as possible, and unfortunate incidents
such as the recalling of four million laptop batteries, which happened in 2006, is not
something that the company has to go through ever again (Hugos 2018). Managers across a
supply chain tend to be unaware for the most part about the expenses that each other have to
incur. If there are centralized financial data points in place that point to exactly where and
how the company is spending its financial resources, then Dell can go a long way in
managing its expenses on the production of quality software solutions, thus being able to
meet customer needs a lot more easily and take on its competitors well enough at the same
time. What having a number of financial pin points in place will do for the company is that it
will encourage communication about cost effective strategies, thus helping Dell to
consolidate its expenses a lot better than usual, while streamlining the process of expenditure
as well (Hugos 2018).
3.4. Introducing Streamline Accounting
Streamline accounting is also something that Dell needs to put in place in order to
manage its supply chain process with success. This will reduce invoice mix ups and will help
the company to avoid engaging in excessive paperwork at the same given time. ERP systems

9LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
which are integrated well enough with electronic fund transfer systems and with electronic
data interchange systems can end up drastically reducing the administrative activities that are
associated with payment processing, and the wait times that are associated with receiving a
payment. Dell employees will be far more satisfied and secure at the work place when
streamline accounting activities are in place, motivating them to do their best for the
company and help it take on its competitors in the market (Liou et al. 2016).
3.5. Just in Time Inventory Management and Manufacturing
Just in time inventory management and just in time manufacturing is something that Dell
needs to deploy as well, in order to make sure that its inventories are managed well enough
and to ensure that manufacturing activities are carried out in the shortest span of time in order
to be able to satiate the growing demands and needs of Dell customers. Inventory costs can
be significantly decreased as a result of putting a just in time inventory management system
in place. Overhead costs will be far less in number and mistakes pertaining to order
fulfillment communication can be easily avoided. The Dell Company will be in a position to
be able to operate at highly optimal inventory levels while reducing warehouse costs at the
same given time. The money that Dell is able to save as a result is something the company
can devote more to the production of quality computers and laptop batteries at all times,
especially if such products have to be competitively priced for the company to take on its
rivals in the market (Mangan et al. 2016).
3.6. Use of Real Time Reports
If decisions are to be taken adequately and in a timely manner in the supply chain
management process, then Dell must ensure that data and information that is utilized in such
a process is accurate as well as timely. Real time reports should be generated at all times, as
this is something that is likely to provide the company with a lot of valuable insights into the

10LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
health of its supply chain process. The company management will be able to access the
inventory instantly and it will also be able to purchase as well as produce data that is vital for
decision making activities to take place (Moncka et al. 2016).
3.7. More Transparency in the Supply Chain
Although Dell is a company that follows a relative amount of transparency where its
supply chain process is concerned, with customers and suppliers being able to view
purchasing needs in real time, the company should take steps to increase its internal supply
chain management transparency in order to reduce financial and inventory losses that are
unexplained (Su et al. 2016). The problems that are associated with reconciling software
numbers with physical inventory count can be avoided by the Dell management when it
deploys a greater degree of transparency in its internal supply chain management (Stevens
and Johnson 2016).
3.8. Introducing Automatic Purchasing
Automatic purchasing is something that Dell should also take recourse to, in order to
make sure that its supply chain process is one that invites less liabilities and facilities the
company to handle technological challenges and take on its competitors in the market in the
manner that is desired. An automated purchasing system in place can enable the easy
placement of orders with vendors even at a time when inventory levels are seen to be
dropping by a considerable extent. The introduction of automatic purchasing will also enable
the employees to focus on other important activities such as the manufacture of quality
computers and computer related products at all times (Wu et al. 2016).
Conclusion
Dell is a company that is renowned for its supply chain process, given the fact that it
provides customers and suppliers with full visibility and transparency and makes use of novel

11LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
techniques like the single user build technique and modular manufacture to make its products
available in the market. Yet the quality of its products has been hampered of late, and there
are many challenges that the company is faced with due to innovations in technology and
increasing number of competitors. The solutions and logistical strategies that have been
discussed above will go a long way in helping Dell to handle such challenges effectively
while improving its supply chain process at the same time.

12LOGISTICS MANAGEMENT – CASE STUDY ANALYSIS
References
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Fredendall, L.D. and Hill, E., 2016. Basics of supply chain management. CRC Press.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Liou, J.J., Tamošaitienė, J., Zavadskas, E.K. and Tzeng, G.H., 2016. New hybrid COPRAS-G
MADM Model for improving and selecting suppliers in green supply chain
management. International Journal of Production Research, 54(1), pp.114-134.
Mangan, J., Lalwani, C. and Lalwani, C.L., 2016. Global logistics and supply chain
management. John Wiley & Sons.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and
supply chain management. Cengage Learning.
Stevens, G.C. and Johnson, M., 2016. Integrating the supply chain… 25 years
on. International Journal of Physical Distribution & Logistics Management, 46(1), pp.19-42
Su, C.M., Horng, D.J., Tseng, M.L., Chiu, A.S., Wu, K.J. and Chen, H.P., 2016. Improving
sustainable supply chain management using a novel hierarchical grey-DEMATEL
approach. Journal of Cleaner Production, 134, pp.469-481
Wu, L., Yue, X., Jin, A. and Yen, D.C., 2016. Smart supply chain management: a review and
implications for future research. The International Journal of Logistics Management, 27(2),
pp.395-417.