PRESENTATION ON DELL

“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.