Transcript
“IN THE NAME OF ALLAH, THE MOST BENEFICENT, THE MOST MERCIFUL”
PRESENTED BY: RIFAT HUMAYUN
SUBJECT : SUPPLY CHAIN MANAGEMENT
MS MANAGEMENT SCIENCESRIPHAH INTERNATIONAL
UNIVERSITY
“THE IDEA OF BEING ALL THINGS TO ALL PEOPLE IS A THING OF THE PAST”.
MICHEAL DELL.
“TO BE THE MOST SUCCESSFUL COMPUTER COMPANY IN THE WORLD AT DELIVERING
THE BEST CUSTOMER EXPERIENCE”
Mission
HISTORY
• Founded by 19-year-old Michael Dell in a dorm
room, grew by more than 50% a year over
1995-1998.
• Dell produces custom build PCs in a matter of
hours and producing no PC component it could
sustain a large portion of PC market comparing
to IBM, HP, Compaq, Hitachi, Sony.
• Dell Computer Corporation designs, develops, manufactures, markets, services and supports a wide range of computer systems, including desktop computer systems, notebook computers and enterprise systems (includes servers, workstations and storage products), and also markets software, peripherals and service and support programs.
• The Company is managed on a geographic basis.
• The three geographic segments are the Americas, Europe, and Asia-Pacific and Japan.
DELL’S SUCCESS
Dell’s success is a combination of:Direct SalesInventory managementSuppliers integration
Together these allow for maximum differences with minimum cost.
CORE ELEMENTS OF STRATEGY
• Mass Customization
• Partnership with Suppliers
• JIT(JUST IN TIME)
• Market Segmentation
• Customer service
• Extensive data and information sharing with both supply partners and customers.
DELL IN DIRECT MODEL
INDIRECT CHANNELSReseller Customized the PC to customer requirements, installed components and provided additional service and support.
DELL DIRECT MODEL
The Direct Model
•Direct Sales From the PC manufacturer to the corporate customer or consumer.
•Bypassing the dealer channel, selling directly to consumer
•Focus on Speed of Execution and Minimum Inventory
DELL DIRECT MODEL
• The Direct Model Characteristics
Eliminate costs and risks of carrying large finished good inventories
High velocity
Low-cost distribution
Direct customer relationship
Build-to-order
Just-in-time manufacturing
Products and Services aimed at specific market segments
PRODUCT LINE
DesktopsLaptops & notebooks
Mobile phones & Devices
Printers & InkElectronics & Software
HDTVs & Home theater
DELL DIRECT MODEL
• Customers And Segmentation
TransactionalIndividuals or businesses who make transaction-by-transaction
buying decision - based on the Economics of the purchase
Focus on performance, specification, featured, reviews, awards
RelationshipBased on “total cost of ownership” TCO and price is a secondary
concern. Like business, government or education accounts in
medium-to-large organizations. Focus on service, reliability, vendor reputation and standardization
CUSTOMER SEGMENTATION
KEY PRINCIPLES OF DELL
Managers spoke of a few key principles that were fundamental to their business. These included:
•· Exchange inventory for information
•· Velocity, value and volume
•· Constant change
•· Criticality of coordination
•Knowing the customer is the foundation for creating value
•· Going from the physical to the virtual world creates barriers to entry
THREE MODELS OF PERSONAL COMPUTER INDUSTRY VALUE
CHAINS
KEY FACTORS TO SUCCESS• Product feature
• Market share
• Established brand name
• Financial position
• Price Competitiveness
• Low distribution costs
• Shorter delivery time
• Global distribution network
• Support and services
• Companies such as Dell that are industry leaders in Internet commerce will be able to expand their customer base and increase their business with existing companies at a low marginal cost. They also can reduce the cost of coordinating their supply chain through
electronic linkages. This will enable them to offer incentives to customers and suppliers
to do business electronically and continue to drive their own costs down.
SUPPLIERS OF DELL
• There are more than 65 supplier for Dell
• Some of the suppliers
• Logitech
• NVIDIA
• Compeq
• Coolit System
• Delta Product
• Pegatron
• Alpha and Omega
SUPPLIERS OF DELL
• Microsoft------ For windows
• Intel----For Micro processor
• NVIDIA------For Graphic chips
• Sony-------For Monitors
SUPPLIERS SELECTION AND EVALUATION
• Quality
• Price
• Delivery
• Response to feed back
EVALUATION:
To measure performance uses suppliers score
Cost
Delivery
Availability of technology
Ways in which they did business with dell over the internet.
DELL LOGISTICS NETWORK Dell’s new and improved design for a channel distribution model:
Order processing Pre-production Accessories ready Configuration Test Boxing Distribution preparations Shipping(transportation)
TRANSPORTATION SYSTEM DESIGN
Optimize inbound and outbound transportation networks
Collaborate with the best logistics and transportation providers
Mode of transportation
By Ship
By Rail
By Air
Virtual integration
Innovation on the assembly floor
Disintermediation (cutting out the middleman)
Enhancing customer value
CONTINUED….
PRODUCT MIX
COMPARISON BETWEEN COMPAQ AND DELL SALES MODEL
THANK YOU.
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