Supply Chain Management at Dell

Running Head: SUPPLY CHAIN MANAGEMENT AT DELL
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SUPPLY CHAIN MANAGEMENT AT DELL
System04121
1/27/2020

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Contents
Overview of the business/company selected..............................................................................3
Supply chain and management of from the main foundation to the consumer..........................4
Direct sales model..................................................................................................................4
Built- To – Order....................................................................................................................4
Supply chain integration........................................................................................................5
Logistics at Dell:....................................................................................................................6
Link among the company and the LB5230 theories..................................................................6
The strategic tangible assets of the company.........................................................................7
Sustainability throughout the value chain at Dell......................................................................7
Primary Activities......................................................................................................................7
Inbound logistics....................................................................................................................7
Outbound Logistics................................................................................................................8
Operations:.............................................................................................................................8
Sales and Marketing:..............................................................................................................9
Services:.................................................................................................................................9
Supportive activities...................................................................................................................9
Technology:............................................................................................................................9
Infrastructure:.........................................................................................................................9
HRM:....................................................................................................................................10
Procurement:........................................................................................................................10
References................................................................................................................................11

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Overview of the business/company selected
Dell is based in Texas, USA and it is also one of the biggest sellers for the computers
and the laptops, it is a international technology and Information Company which is basically
working around 76500 persons around the ecosphere as of 2009
In order to talk around the company dell or the source of the combination, the idea of
the business was originated and developed by Michael Dell 1984 as in the designation of the
PCs limited, while on the other hand he was also learning in the Texas, he was 20 years old
and he founded the company with a capital of dollar 1000 during the period of 2009, the
company had the asset valued or worth $26,500 billion (Seuring, 2013).
Dell Inc. happening with a very small concept to sell directly to the end customers by
Michael Dell, He was mainly focused in order to evade the mediators and to cut the cost of
products and vend it directly to the end user at a cheap rate comparatively. The company Dell
was unable to sell IBM clones for 40 percent less than the competition. This is one of the
strategies that provided a way in order to run the business in an prompt growth. Once the
company Dell tries to vend its products in an indirect manner through the warehouse of the
computer and the superstores in the year 1990 and it also met by a little achievement and the
business then changed on its more fruitful straight to the auctions model of the consumers
and finally the company Dell started selling the computer through internet web site from the
year 1996 (Dissanayake, 2012).

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Supply chain and management of from the main foundation to the
consumer
Direct sales model
The direct auctions simply means that the company dell fixes not make use of any
retailer or wholesaler for vending the computers, instead of this, it takes the instruction
straight from the clienteles by the use of goods which are established and then they sell it
directly to the customers according to the orders places, this also allows the company Dell
to have a direct and an upfront relation with the customers and it also helps the company to
know the wants and the needs of the customers.
With the help of this supply chain plan, the company can make a straight relation with each
and every client. Apart from this, the customers are also benefitted from the same and as they
are also able to know various benefits that are given by the company Dell computers and
with this benefit of the supply chain model the company can also have knowledge about the
last customer and their choice of purchasing. This data is also very helpful for the company
dell and it helps the company to form the products referring to needs and wants of the
customers (Tate, Ellram, and Kirchoff, 2010).
.
Built- To – Order
Built- to- command is a kind of plan in the management of supply chain management
of the business dell and it mainly focuses on the building and making the computers only
when the customer’s order it, the procedure for this is firstly the 5 customers place ordered
from the website of dell according to the requirements of the customers and then they are
directed to the ground of manufacturing and then finally the meeting begins.

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If it is linked with the other companies of PC, it was very important for the company
dell to have benefits with the unique supply chain strategy and it can also be seen that dell
have various advantages:
 One of the main and the first advantage was the level of inventories which were very
less and it also helped the company to spend low in order to maintain the inventory.
 The second thing is that Dell is one of the most fast responding to the demand
changes, for instance: in circumstance of a brand new software originated then the
company dell will not be waiting in order to get rid from the first stock instead of the
company informs the customers about the new software and if the customer needs
then only the customers ask their supplier to provide it as the dell manufacturers
exactly what the customers’ needs (Hertz, 2011).
 Moving ahead apart from this the Built-To-Order strategy helps in giving the benefit
to have a Just in time inventory which aids the company to advert out the faulty
components to have a Just in time inventory which advantages the company to spot
the defective mechanisms and trade it fast before any more faulty components occur.
Supply chain integration
Dell is a company which have dealers from all over the ecosphere and which
compromises the republics like India, China and U.S. Some of the large supplier of the
company dell is Samsung, Sony and Motorola and the entire mentioned supplier supplies the
mechanism giving to the code of conduct of Dell. The relation of dell with the supplier’s link
to the two supply chain strategy. It also shows that the suppliers are one of the most important
part of the internal success part. The suppliers certain by the company dell has a knowledge,
competence and experience and the competence in order to transport the value added

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mechanisms and presentation of the dealers which is also leisurely with the pre-agreed events
(Fahimnia, Sarkis, and Davarzani, 2015).
Logistics at Dell:
Dell readies the service of stock offers the customers with the ability to warehouse the
products at their facility for up to 180 days. Then they take the delivery on day and time that
meets the best with the needs and wants of the customers, apart from this the systems are
configured, just before the shipping making sure about the latest images, end patched and the
BIOS are applied. The company Dell also consolidates various multiple orders into a single
purchase orders and delivery (Carter and Liana Easton, 2011).
In order to keep the customers updated the company allows the customers to keep a track of
the new PCs and before the shipping the company also apply asset tags and ship the label of
boxes. The company next simply adds the appropriate documentation to the boxes of
shipping for each of the product given to the customers.
Further the company also integrate various multiple packages while keeping the new an the
original unit packaging (Wu, and Pagell, 2011).
The service of the company is designed to meet some of the most unique logistics or the
requirements of delivery at a unique trucking and specific on-time delivery that is not covered
usually through the standard options.
Link among the company and the LB5230 theories
Supply chain activities of Dell are completely linked with the ideas and the
philosophies of the supply chain management that are mentioned in the literature and text.
There is a description of the inter-relation of the theoretical instances in the model of supply
chain perfect of the business Dell is presented in the sections below.

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The strategic tangible assets of the company
The strategic tangible assets of the company are mainly those assets of the firm that
includes the physical and the financial assets. These are mainly the assets that can be seen as
well as touched. These are the assets that are known as the strategic assets as these assets play
a very significant part in the formulation and the implementation of the strategy in an
organization. The strategic tangible assets of the company are collectively accounted for the 5
million. Along with the operating cash flow of the company is recorded at $80590 and all of
these were the components of the strategic tangible assets of the company (Sarkis, J Zhu, and
Lai, 2011).
Sustainability throughout the value chain at Dell

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Primary Activities
Inbound logistics
The company Dell has a worldwide supply chain system which is achieved by them in
a good manner through the chain of all the warehouses that serve the facilities of
manufacturing and the retail operations. The company owns the manufacturing activities
which are situated in china, United States, Brazil, Poland and India. The brand bases the raw
material from the dealers situated everywhere in the world. Dell workings with the external
associates of logistics to enhance the inbound logistics and used numerous channels counting
Sea and air to basis the raw material. The company dell also uses the Just in the time model
for the supply chain and the record management. Obtaining is made much more easy by
joining with the logistics workers like DHL, UPS and the others (Kim, 2016).
Outbound Logistics
Just as the same in circumstance if incoming logistics dell has also achieved its
outbound logistics in a very healthy manner, with the assistance from the outside provider of
the logistics, the third party vendor and the logistics providers production a very important
role in bringing the solutions and the products to the customers. The company Dell uses
various networks of distribution centres as well as the retail associates to make various
deliveries to the end customers who are available at a close site. In Europe the company has
protracted its completion net and has also changes the method it used to bring the fittings.
The company also usages the multi-channel transport strategy. By a balance and a mix of
various stations the company is able to decrease the expenditure and has also censored the
releases. Whether it was in the footings of incoming or the outbound logistics, the emphasis
of dell remained on reducing the ecological footprint. Apart from the assortment of correct

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way of delivery, the use of right transport stations also make sure that neither time and nor
other bases are being missed (Hsuan Mikkola & Skjøtt-Larsen, 2014).
Operations:
Dell is one of the global brands with the global supply and the distribution network. The
brand has always focuses on optimizing the network in order to gain the high efficiency and
productivity. Apart from that to upsurge its worldwide presence the brand has sustained to
emphasis upon the developing marketplaces outer US, Canada, Japan and Western Europe.
(Ahi, and Searcy, 2013).
Sales and Marketing:
The company dell has global sales as well as a good distribution network apart from
its direct to customer’s channel of sales. Apart from having its own channel of retail, it has
also focused on increasing the number of its retail partners in the recent years. (Gold,
Seuring, and Beske, 2010)
Services:
After sales, customer facility is one of the more important things when it comes the
satisfaction of the customers. After the auctions facility leads to decent word of entrance,
healthier standing as well as the higher gratification of the customers. the company Dell has
also managed a worldwide network of sales.
Supportive activities
Technology:
Dell is a brand of technology and it emphases on technical novelty to transport better
services and products as well as to enlarge its commercial. Apart from its calculating

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commercial, the product is contingent deeply on the IT substructure for the working of its
commercial.
Infrastructure:
Dell’s worldwide processes are reinforced by robust substructure. Its commercial is
protected by a large and interweaved IT and industrial substructure. Michael Dell pointers the
creation and is its chief choice maker. Dell has local workplaces all over the creation. (Ghosh,
& Shah, 2015).
HRM:
Dell has also upheld weighty emphasis on HR organization. Planned HR organization
has developed dangerous in this age to the process and group of a fruitful commercial. Dell
employments about 145000 full time staffs out of which 22000 are VMware’s employees.
Procurement:
Dell has synchronized its worldwide attaining procedure very healthy. Its worldwide
obtaining team workings in near organization to achieve a well-organized supply chain and
basis raw resources professionally from dealers situated in all turnings of the creation.

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References
Carter, C.R. and Liane Easton, P., 2011. Sustainable supply chain management: evolution
and future directions. International journal of physical distribution & logistics
management, 41(1), pp.46-62.
Sarkis, J., Zhu, Q. and Lai, K.H., 2011. An organizational theoretic review of green supply
chain management literature. International journal of production economics, 130(1),
pp.1-15.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain
management. Decision support systems, 54(4), pp.1513-1520.
Gold, S., Seuring, S. and Beske, P., 2010. Sustainable supply chain management and inter‐
organizational resources: a literature review. Corporate social responsibility and
environmental management, 17(4), pp.230-245.
Ahi, P. and Searcy, C., 2013. A comparative literature analysis of definitions for green and
sustainable supply chain management. Journal of cleaner production, 52, pp.329-341.
Wu, Z. and Pagell, M., 2011. Balancing priorities: Decision-making in sustainable supply
chain management. Journal of operations management, 29(6), pp.577-590.
Tate, W.L., Ellram, L.M. and Kirchoff, J.F., 2010. Corporate social responsibility reports: a
thematic analysis related to supply chain management. Journal of supply chain
management, 46(1), pp.19-44.

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Fahimnia, B., Sarkis, J. and Davarzani, H., 2015. Green supply chain management: A review
and bibliometric analysis. International Journal of Production Economics, 162,
pp.101-114.
Dissanayake, D.M.N.S.W., 2012. Integrated communications, integrated marketing
communications and corporate reputation: Evidences from dell computer
corporations. Researchers World, 3(3), p.26.
Hertz, S. (2011). Dynamics of alliances in highly integrated supply chain
networks. International Journal of Logistics, 4(2), 237-256.
Kim, D. (2016). Process chain: A new paradigm of collaborative commerce and synchronized
supply chain. Business Horizons, 49(5), 359-367.
Hsuan Mikkola, J., & Skjøtt-Larsen, T. (2014). Supply-chain integration: implications for
mass customization, modularization and postponement strategies. Production
Planning & Control, 15(4), 352-361.
Ghosh, D., & Shah, J. (2015). Supply chain analysis under green sensitive consumer demand
and cost sharing contract. International Journal of Production Economics, 164, 319-
329.