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Building Great Customer ExperiencesPresented By:-Chetan Kolhe M3123 Gaurav Rane M3142Siddhi Wagh M3155Deepak Yadav M3157MANAGEMENT INFORMATION SYSTEM IN Roadmap Introduction To DellDirect ModelValuable Web ModelService Chain ManagementI2 TechnologyRFIDLean Inventory ModelBusiness to Business PlanningCustomer Relation Management

Dell at a Glance1984 - Founded by Michael DellHardware Design ManufacturingDistribution1987 - First Computer Systems Company On-site product service .2012 - Globally 2nd Market Share of Around 16%.Greater than $ 50 Million sales per day through the internet Yearly revenue of more than US$ 63.07 Billion With employee base of 1,13,300Ventured In areas of storage products, Workstation systems, Online technical support, Appliance servers,Network switches, Standards based point of sale offering for retail customers, Recycling .Shipped more than 10 million systems in a single quarter.3DELLs Direct ModelSuppliersPC MakerDistributerRetailer,Resellers,IntegratorsFinal CustomerSuppliersDELLFinal CustomerIndirect PC Value ChainDirect PC Value Chain : DELL Hardware Delivery SystemDirect relationship, most efficient pathLow cost and best valueBuilt to orderCustomized systemsSuperior, tailored service and supportHighest quality and most relevant technology

4DELLs Value Web ModelDELLFinal CustomerLogisticsSystem IntegratorsCMs/OEMsDistributer3rd Party HW & SW SuppliesComponent SuppliersRepair & Support CompaniesPhysical Flow (Product & Services)

Information Flow5Why SCM is so Important In PC businessImprovement In SCM0.1 %Impact On ManufacturingProcess10 %Change In TechnologyObsoletes Materials1 % Per WeekMaterial Cost A/C = 74% i.e. near about $ 21 billionTechnological breakthroughs cause very short PLCMaterial costs account for 74%($21 billion) a year for dell.

Improving SCM by 0.1% has bigger impact than improving manufacturing process by 10% .

Changing technology obsoletes Materials value by almost 1% per week .

Rely on market forecasting to drive Production.

Technological breakthroughs cause very short Product life cycles .

6Dells Competitive Advantages Dell is having one of the best SCM in the world. 90% supplies ordered online using integrated websites of supplier and Dell (B2B) 95% of suppliers situated very close to assembly plant hence coordination is easier. Dells factories have only 7 hrs worth of inventory for most items whereas industry wise it is around 10 days. 15 suppliers provide almost 85% of all supplies. Dell gets paid by customers and then pays to its suppliers.Since its inception, Dell has thrived by challenging conventional business wisdom. By taking direct-to-customer and build-to-order techniques to a global scale, Dell has earned a reputation for delivering exactly the right products on schedule, and at a competitive price.The result is that Dell does not begin assembling a single computer until the company has an order from a specific customer. The order may be for an individual, a small business looking for a few PCs, or a major corporation or government agency that needs thousands of specially-configured servers, storage products, notebook computers orother products delivered to field locations worldwide. Everyassembled computer has a waiting customer and a short lead-time delivery date. The success of this approach is reflected in Dell's expected US$6.5 billion growth this year. As the company has grown, so has the challenge of balancing evolving computer preferences and demand with a volatile marketplace for the materials and components the company needs to build the computers. To compound the problem, changing technology obsoletes those materials sometimes as rapidly as 2% of value per week.In true Dell fashion, the company chose a completely new solution for an old problem and once again reinvented its supply chain.Here's how it works. Through a suite of web-based applications, Dell is now linked with its core suppliers. This new system automatically converts Dell's sales orders into materials requirements. These requirements are then instantly communicated to suppliers, whose stocking locations are situated no more than thirty minutes from the Dell factory. Those suppliers use an Internet portal to view therequirements and confirm their ability to commit their own inventory to Dell as the orders are placed.As Dell factories receive orders and schedule assemblies, a "pull" signal to the supplier triggers the shipment of only the materials required to build current orders, and suppliers deliver the orders directly to the appropriate Dell assembly lines. The factory schedule is refreshed every two hours. As a result, when actual demand varies from forecasted demand, all suppliers, factories and logistics providers are quickly and concurrently notified and can adjust their own inventory allocations and production accordingly. Dell's inboundinventory is kept to a minimum, its non-ordered finished goods inventory is kept at zero, customer orders are immediately sent upon completion and customers receive what they ordered on the promised date.The efficiency of Dell's solution has been lauded by business and technology publications alike:"Dell's new approach takes the concept of just-in-time operations to new levels. The company's most efficient factories . . . order only the supplies required to keep production running for the next two hours. As the two-hour clock winds down, suppliers-who keep gear in a warehouse near Dell's factories-are electronically told what to deliver so Dell can build the next two hours' worth of computers."-David RocksBusiness WeekBehind Dell's information revolution are a series of projectsdesigned to deliver a leading-edge decision-support system coupling i2 Technology's Rhythm Collaborative Planner, Factory Planner and Supply Chain Planner and Dell's direct-sales model to create enhanced planning and scheduling capabilities. The Dell supply chain management program has delivered a business tool that the people at Dell use to interact more efficiently with their suppliers, helping both Dell and its suppliers to respond to the shifting demand in the marketplace. The ultimate objective of this project was to reduce customer lead-time while creating efficiencies within planning and manufacturing operations.The program has delivered a new business capability which:* Simplifies the jobs of Dell employees who are responsible for managing material supply,* Allows Dell to transact business for specific order-drivenpurchases of materials and supplies,* Provides Dell with a global picture of what supply and demand look like at any point in time,* Gives Dell's planners the ability to focus on exception situations, relieving them of the drudgery of examining every possible supply constraint,* Makes it nearly impossible for components to grow obsolete in warehouses, and* Allows Dell to see potential supply constraints earlier and react quickly to correct an out-of-balance situation. In the case of a global shortage, this may mean offering suitable alternatives to its customers to ensure that they receive the products they need when they need them.Customers always receive the latest technology, exactly how and when they need it, all at a competitive price. This commitment to customer service enables Dell to sustain its leading marketplace position. Business-to-business interaction via the Internet is the main pursuit for many companies in today's electronic environment. But Dell's commitment to its enabling technologies and its willingness to rethink traditional ways of doing business makes it the first corporation to fully leverage the potential of the medium. This new system that Dell has created is the first truly private business-to-business exchange with dynamic supply-chain business transacted on the Web. As noted by The Wall Street Journal, Dell now has:"[some] of the most advanced computer assembly plants in the world if measured by integration with the Internet. Up to 50% of the orders flow directly from customers on the Internet to the aptly named 'air-traffic control room' in the plant where procurement, assembly and shipping are managed. It sits directly above the sprawling main plant floor."-John DodgeInnovative applications of technology seen in Dell's solution include:* Use of complex mathematical models to identify and predict supply constraints,* Advanced collaborative techniques using the Web as a communications medium, and* New methods of synchronizing demand and supply to minimizeinventory and material handling, thereby reducing cycle time.
Within the system, customer orders are reviewed and compared to supplier inventory every two hours. Dell then issues pull orders for only the materials needed to complete the next two hours of order-building, a capability that represents an industry best. This extremely short cycle helps ensure that the very latest customer demand picture is being addressed.

7Dells Chose i2 (SCM) Software Package Dell chose i2 Technologies for its SCM system. i2 serves almost 70% of the SCM market. At every 20 sec the Software aggregates ordersAnalyzes material requirements Compares Dells on-hand inventory with its suppliers inventoryCreates a supplier bill of material to meet its order needs . Instead of forecasting the daily supply neededDell receives the exact material every two hours to fulfill actual customer orders.

Since its inception, Dell has thrived by challenging conventional business wisdom. By taking direct-to-customer and build-to-order techniques to a global scale, Dell has earned a reputation for delivering exactly the right products on schedule, and at a competitive price.The result is that Dell does not begin assembling a single computer until the company has an order from a specific customer. The order may be for an individual, a small business looking for a few PCs, or a major corporation or government agency that needs thousands of specially-configured servers, storage products, notebook computers orother products delivered to field locations worldwide. Everyassembled computer has a waiting customer and a short lead-time delivery date. The success of this approach is reflected in Dell's expected US$6.5 billion growth this year. As the company has grown, so has the challenge of balancing evolving computer preferences and demand with a volatile marketplace for the materials and components the company needs to build the computers. To compound the problem, changing technology obsoletes those materials sometimes as rapidly as 2% of value per week.In true Dell fashion, the company chose a completely new solution for an old problem and once again reinvented its supply chain.Here's how it works. Through a suite of web-based applications, Dell is now linked with its core suppliers. This new system automatically converts Dell's sales orders into materials requirements. These requirements are then instantly communicated to suppliers, whose stocking locations are situated no more than thirty minutes from the Dell factory. Those suppliers use an Internet portal to view therequirements and confirm their ability to commit their own inventory to Dell as the orders are placed.As Dell factories receive orders and schedule assemblies, a "pull" signal to the supplier triggers the shipment of only the materials required to build current orders, and suppliers deliver the orders directly to the appropriate Dell assembly lines. The factory schedule is refreshed every two hours. As a result, when actual demand varies from forecasted demand, all suppliers, factories and logistics providers are quickly and concurrently notified and can adjust their own inventory allocations and production accordingly. Dell's inboundinventory is kept to a minimum, its non-ordered finished goods inventory is kept at zero, customer orders are immediately sent upon completion and customers receive what they ordered on the promised date.The efficiency of Dell's solution has been lauded by business and technology publications alike:"Dell's new approach takes the concept of just-in-time operations to new levels. The company's most efficient factories . . . order only the supplies required to keep production running for the next two hours. As the two-hour clock winds down, suppliers-who keep gear in a warehouse near Dell's factories-are electronically told what to deliver so Dell can build the next two hours' worth of computers."-David RocksBusiness WeekBehind Dell's information revolution are a series of projectsdesigned to deliver a leading-edge decision-support system coupling i2 Technology's Rhythm Collaborative Planner, Factory Planner and Supply Chain Planner and Dell's direct-sales model to create enhanced planning and scheduling capabilities. The Dell supply chain management program has delivered a business tool that the people at Dell use to interact more efficiently with their suppliers, helping both Dell and its suppliers to respond to the shifting demand in the marketplace. The ultimate objective of this project was to reduce customer lead-time while creating efficiencies within planning and manufacturing operations.The program has delivered a new business capability which:* Simplifies the jobs of Dell employees who are responsible for managing material supply,* Allows Dell to transact business for specific order-drivenpurchases of materials and supplies,* Provides Dell with a global picture of what supply and demand look like at any point in time,* Gives Dell's planners the ability to focus on exception situations, relieving them of the drudgery of examining every possible supply constraint,* Makes it nearly impossible for components to grow obsolete in warehouses, and* Allows Dell to see potential supply constraints earlier and react quickly to correct an out-of-balance situation. In the case of a global shortage, this may mean offering suitable alternatives to its customers to ensure that they receive the products they need when they need them.Customers always receive the latest technology, exactly how and when they need it, all at a competitive price. This commitment to customer service enables Dell to sustain its leading marketplace position. Business-to-business interaction via the Internet is the main pursuit for many companies in today's electronic environment. But Dell's commitment to its enabling technologies and its willingness to rethink traditional ways of doing business makes it the first corporation to fully leverage the potential of the medium. This new system that Dell has created is the first truly private business-to-business exchange with dynamic supply-chain business transacted on the Web. As noted by The Wall Street Journal, Dell now has:"[some] of the most advanced computer assembly plants in the world if measured by integration with the Internet. Up to 50% of the orders flow directly from customers on the Internet to the aptly named 'air-traffic control room' in the plant where procurement, assembly and shipping are managed. It sits directly above the sprawling main plant floor."-John DodgeInnovative applications of technology seen in Dell's solution include:* Use of complex mathematical models to identify and predict supply constraints,* Advanced collaborative techniques using the Web as a communications medium, and* New methods of synchronizing demand and supply to minimizeinventory and material handling, thereby reducing cycle time.
Within the system, customer orders are reviewed and compared to supplier inventory every two hours. Dell then issues pull orders for only the materials needed to complete the next two hours of order-building, a capability that represents an industry best. This extremely short cycle helps ensure that the very latest customer demand picture is being addressed.

8i2 Technologyi2 technologies software enables Dell to monitor the supply position of every part

On a high level, the supply chain process is comprised of two steps:

Planning Which involves getting the needed materials positioned at SLCs near the appropriate Dell factories.

Execution Which involves having the right materials on and at the factory to build each customers order.Since its inception, Dell has thrived by challenging conventional business wisdom. By taking direct-to-customer and build-to-order techniques to a global scale, Dell has earned a reputation for delivering exactly the right products on schedule, and at a competitive price.The result is that Dell does not begin assembling a single computer until the company has an order from a specific customer. The order may be for an individual, a small business looking for a few PCs, or a major corporation or government agency that needs thousands of specially-configured servers, storage products, notebook computers orother products delivered to field locations worldwide. Everyassembled computer has a waiting customer and a short lead-time delivery date. The success of this approach is reflected in Dell's expected US$6.5 billion growth this year. As the company has grown, so has the challenge of balancing evolving computer preferences and demand with a volatile marketplace for the materials and components the company needs to build the computers. To compound the problem, changing technology obsoletes those materials sometimes as rapidly as 2% of value per week.In true Dell fashion, the company chose a completely new solution for an old problem and once again reinvented its supply chain.Here's how it works. Through a suite of web-based applications, Dell is now linked with its core suppliers. This new system automatically converts Dell's sales orders into materials requirements. These requirements are then instantly communicated to suppliers, whose stocking locations are situated no more than thirty minutes from the Dell factory. Those suppliers use an Internet portal to view therequirements and confirm their ability to commit their own inventory to Dell as the orders are placed.As Dell factories receive orders and schedule assemblies, a "pull" signal to the supplier triggers the shipment of only the materials required to build current orders, and suppliers deliver the orders directly to the appropriate Dell assembly lines. The factory schedule is refreshed every two hours. As a result, when actual demand varies from forecasted demand, all suppliers, factories and logistics providers are quickly and concurrently notified and can adjust their own inventory allocations and production accordingly. Dell's inboundinventory is kept to a minimum, its non-ordered finished goods inventory is kept at zero, customer orders are immediately sent upon completion and customers receive what they ordered on the promised date.The efficiency of Dell's solution has been lauded by business and technology publications alike:"Dell's new approach takes the concept of just-in-time operations to new levels. The company's most efficient factories . . . order only the supplies required to keep production running for the next two hours. As the two-hour clock winds down, suppliers-who keep gear in a warehouse near Dell's factories-are electronically told what to deliver so Dell can build the next two hours' worth of computers."-David RocksBusiness WeekBehind Dell's information revolution are a series of projectsdesigned to deliver a leading-edge decision-support system coupling i2 Technology's Rhythm Collaborative Planner, Factory Planner and Supply Chain Planner and Dell's direct-sales model to create enhanced planning and scheduling capabilities. The Dell supply chain management program has delivered a business tool that the people at Dell use to interact more efficiently with their suppliers, helping both Dell and its suppliers to respond to the shifting demand in the marketplace. The ultimate objective of this project was to reduce customer lead-time while creating efficiencies within planning and manufacturing operations.The program has delivered a new business capability which:* Simplifies the jobs of Dell employees who are responsible for managing material supply,* Allows Dell to transact business for specific order-drivenpurchases of materials and supplies,* Provides Dell with a global picture of what supply and demand look like at any point in time,* Gives Dell's planners the ability to focus on exception situations, relieving them of the drudgery of examining every possible supply constraint,* Makes it nearly impossible for components to grow obsolete in warehouses, and* Allows Dell to see potential supply constraints earlier and react quickly to correct an out-of-balance situation. In the case of a global shortage, this may mean offering suitable alternatives to its customers to ensure that they receive the products they need when they need them.Customers always receive the latest technology, exactly how and when they need it, all at a competitive price. This commitment to customer service enables Dell to sustain its leading marketplace position. Business-to-business interaction via the Internet is the main pursuit for many companies in today's electronic environment. But Dell's commitment to its enabling technologies and its willingness to rethink traditional ways of doing business makes it the first corporation to fully leverage the potential of the medium. This new system that Dell has created is the first truly private business-to-business exchange with dynamic supply-chain business transacted on the Web. As noted by The Wall Street Journal, Dell now has:"[some] of the most advanced computer assembly plants in the world if measured by integration with the Internet. Up to 50% of the orders flow directly from customers on the Internet to the aptly named 'air-traffic control room' in the plant where procurement, assembly and shipping are managed. It sits directly above the sprawling main plant floor."-John DodgeInnovative applications of technology seen in Dell's solution include:* Use of complex mathematical models to identify and predict supply constraints,* Advanced collaborative techniques using the Web as a communications medium, and* New methods of synchronizing demand and supply to minimizeinventory and material handling, thereby reducing cycle time.
Within the system, customer orders are reviewed and compared to supplier inventory every two hours. Dell then issues pull orders for only the materials needed to complete the next two hours of order-building, a capability that represents an industry best. This extremely short cycle helps ensure that the very latest customer demand picture is being addressed.

9Delivering High Performance Storage 2 Global Centers 72 Dell Power Edge 6650 servers. Dell uses Oracle 9i Database with Real Application Clusters (RAC) Red Hat Linux Advanced OS 5 million transactions a day Dell uses Dell / EMC Fibre Channel SAN (Storage Area Network) This helps: Store and retrieve critical information. Helps it scale easily and thus enabling it to accommodate any increase in storage system.

Since its inception, Dell has thrived by challenging conventional business wisdom. By taking direct-to-customer and build-to-order techniques to a global scale, Dell has earned a reputation for delivering exactly the right products on schedule, and at a competitive price.The result is that Dell does not begin assembling a single computer until the company has an order from a specific customer. The order may be for an individual, a small business looking for a few PCs, or a major corporation or government agency that needs thousands of specially-configured servers, storage products, notebook computers orother products delivered to field locations worldwide. Everyassembled computer has a waiting customer and a short lead-time delivery date. The success of this approach is reflected in Dell's expected US$6.5 billion growth this year. As the company has grown, so has the challenge of balancing evolving computer preferences and demand with a volatile marketplace for the materials and components the company needs to build the computers. To compound the problem, changing technology obsoletes those materials sometimes as rapidly as 2% of value per week.In true Dell fashion, the company chose a completely new solution for an old problem and once again reinvented its supply chain.Here's how it works. Through a suite of web-based applications, Dell is now linked with its core suppliers. This new system automatically converts Dell's sales orders into materials requirements. These requirements are then instantly communicated to suppliers, whose stocking locations are situated no more than thirty minutes from the Dell factory. Those suppliers use an Internet portal to view therequirements and confirm their ability to commit their own inventory to Dell as the orders are placed.As Dell factories receive orders and schedule assemblies, a "pull" signal to the supplier triggers the shipment of only the materials required to build current orders, and suppliers deliver the orders directly to the appropriate Dell assembly lines. The factory schedule is refreshed every two hours. As a result, when actual demand varies from forecasted demand, all suppliers, factories and logistics providers are quickly and concurrently notified and can adjust their own inventory allocations and production accordingly. Dell's inboundinventory is kept to a minimum, its non-ordered finished goods inventory is kept at zero, customer orders are immediately sent upon completion and customers receive what they ordered on the promised date.The efficiency of Dell's solution has been lauded by business and technology publications alike:"Dell's new approach takes the concept of just-in-time operations to new levels. The company's most efficient factories . . . order only the supplies required to keep production running for the next two hours. As the two-hour clock winds down, suppliers-who keep gear in a warehouse near Dell's factories-are electronically told what to deliver so Dell can build the next two hours' worth of computers."-David RocksBusiness WeekBehind Dell's information revolution are a series of projectsdesigned to deliver a leading-edge decision-support system coupling i2 Technology's Rhythm Collaborative Planner, Factory Planner and Supply Chain Planner and Dell's direct-sales model to create enhanced planning and scheduling capabilities. The Dell supply chain management program has delivered a business tool that the people at Dell use to interact more efficiently with their suppliers, helping both Dell and its suppliers to respond to the shifting demand in the marketplace. The ultimate objective of this project was to reduce customer lead-time while creating efficiencies within planning and manufacturing operations.The program has delivered a new business capability which:* Simplifies the jobs of Dell employees who are responsible for managing material supply,* Allows Dell to transact business for specific order-drivenpurchases of materials and supplies,* Provides Dell with a global picture of what supply and demand look like at any point in time,* Gives Dell's planners the ability to focus on exception situations, relieving them of the drudgery of examining every possible supply constraint,* Makes it nearly impossible for components to grow obsolete in warehouses, and* Allows Dell to see potential supply constraints earlier and react quickly to correct an out-of-balance situation. In the case of a global shortage, this may mean offering suitable alternatives to its customers to ensure that they receive the products they need when they need them.Customers always receive the latest technology, exactly how and when they need it, all at a competitive price. This commitment to customer service enables Dell to sustain its leading marketplace position. Business-to-business interaction via the Internet is the main pursuit for many companies in today's electronic environment. But Dell's commitment to its enabling technologies and its willingness to rethink traditional ways of doing business makes it the first corporation to fully leverage the potential of the medium. This new system that Dell has created is the first truly private business-to-business exchange with dynamic supply-chain business transacted on the Web. As noted by The Wall Street Journal, Dell now has:"[some] of the most advanced computer assembly plants in the world if measured by integration with the Internet. Up to 50% of the orders flow directly from customers on the Internet to the aptly named 'air-traffic control room' in the plant where procurement, assembly and shipping are managed. It sits directly above the sprawling main plant floor."-John DodgeInnovative applications of technology seen in Dell's solution include:* Use of complex mathematical models to identify and predict supply constraints,* Advanced collaborative techniques using the Web as a communications medium, and* New methods of synchronizing demand and supply to minimizeinventory and material handling, thereby reducing cycle time.
Within the system, customer orders are reviewed and compared to supplier inventory every two hours. Dell then issues pull orders for only the materials needed to complete the next two hours of order-building, a capability that represents an industry best. This extremely short cycle helps ensure that the very latest customer demand picture is being addressed.

10Dells Factory Planner Solution Manages 250 suppliers For handling 4000 components Calculates schedules. Estimates surplus parts in the factory Check supplier inventory. Places orders, which are delivered within 90 minutesSince its inception, Dell has thrived by challenging conventional business wisdom. By taking direct-to-customer and build-to-order techniques to a global scale, Dell has earned a reputation for delivering exactly the right products on schedule, and at a competitive price.The result is that Dell does not begin assembling a single computer until the company has an order from a specific customer. The order may be for an individual, a small business looking for a few PCs, or a major corporation or government agency that needs thousands of specially-configured servers, storage products, notebook computers orother products delivered to field locations worldwide. Everyassembled computer has a waiting customer and a short lead-time delivery date. The success of this approach is reflected in Dell's expected US$6.5 billion growth this year. As the company has grown, so has the challenge of balancing evolving computer preferences and demand with a volatile marketplace for the materials and components the company needs to build the computers. To compound the problem, changing technology obsoletes those materials sometimes as rapidly as 2% of value per week.In true Dell fashion, the company chose a completely new solution for an old problem and once again reinvented its supply chain.Here's how it works. Through a suite of web-based applications, Dell is now linked with its core suppliers. This new system automatically converts Dell's sales orders into materials requirements. These requirements are then instantly communicated to suppliers, whose stocking locations are situated no more than thirty minutes from the Dell factory. Those suppliers use an Internet portal to view therequirements and confirm their ability to commit their own inventory to Dell as the orders are placed.As Dell factories receive orders and schedule assemblies, a "pull" signal to the supplier triggers the shipment of only the materials required to build current orders, and suppliers deliver the orders directly to the appropriate Dell assembly lines. The factory schedule is refreshed every two hours. As a result, when actual demand varies from forecasted demand, all suppliers, factories and logistics providers are quickly and concurrently notified and can adjust their own inventory allocations and production accordingly. Dell's inboundinventory is kept to a minimum, its non-ordered finished goods inventory is kept at zero, customer orders are immediately sent upon completion and customers receive what they ordered on the promised date.The efficiency of Dell's solution has been lauded by business and technology publications alike:"Dell's new approach takes the concept of just-in-time operations to new levels. The company's most efficient factories . . . order only the supplies required to keep production running for the next two hours. As the two-hour clock winds down, suppliers-who keep gear in a warehouse near Dell's factories-are electronically told what to deliver so Dell can build the next two hours' worth of computers."-David RocksBusiness WeekBehind Dell's information revolution are a series of projectsdesigned to deliver a leading-edge decision-support system coupling i2 Technology's Rhythm Collaborative Planner, Factory Planner and Supply Chain Planner and Dell's direct-sales model to create enhanced planning and scheduling capabilities. The Dell supply chain management program has delivered a business tool that the people at Dell use to interact more efficiently with their suppliers, helping both Dell and its suppliers to respond to the shifting demand in the marketplace. The ultimate objective of this project was to reduce customer lead-time while creating efficiencies within planning and manufacturing operations.The program has delivered a new business capability which:* Simplifies the jobs of Dell employees who are responsible for managing material supply,* Allows Dell to transact business for specific order-drivenpurchases of materials and supplies,* Provides Dell with a global picture of what supply and demand look like at any point in time,* Gives Dell's planners the ability to focus on exception situations, relieving them of the drudgery of examining every possible supply constraint,* Makes it nearly impossible for components to grow obsolete in warehouses, and* Allows Dell to see potential supply constraints earlier and react quickly to correct an out-of-balance situation. In the case of a global shortage, this may mean offering suitable alternatives to its customers to ensure that they receive the products they need when they need them.Customers always receive the latest technology, exactly how and when they need it, all at a competitive price. This commitment to customer service enables Dell to sustain its leading marketplace position. Business-to-business interaction via the Internet is the main pursuit for many companies in today's electronic environment. But Dell's commitment to its enabling technologies and its willingness to rethink traditional ways of doing business makes it the first corporation to fully leverage the potential of the medium. This new system that Dell has created is the first truly private business-to-business exchange with dynamic supply-chain business transacted on the Web. As noted by The Wall Street Journal, Dell now has:"[some] of the most advanced computer assembly plants in the world if measured by integration with the Internet. Up to 50% of the orders flow directly from customers on the Internet to the aptly named 'air-traffic control room' in the plant where procurement, assembly and shipping are managed. It sits directly above the sprawling main plant floor."-John DodgeInnovative applications of technology seen in Dell's solution include:* Use of complex mathematical models to identify and predict supply constraints,* Advanced collaborative techniques using the Web as a communications medium, and* New methods of synchronizing demand and supply to minimizeinventory and material handling, thereby reducing cycle time.
Within the system, customer orders are reviewed and compared to supplier inventory every two hours. Dell then issues pull orders for only the materials needed to complete the next two hours of order-building, a capability that represents an industry best. This extremely short cycle helps ensure that the very latest customer demand picture is being addressed.

11RFID Radio Frequency Identification Devices. RFID is a 3 part technology consisting of: A reader A receiver with decoder A TransponderTagsReadersCMs/OEMsLocal Software &InfrastructureEnterpriseIntegration

LOCAL SERVER

SCMERPRFID History and Development Radio Frequency Identification Device (RFID) is a wireless system that works in conjunction with a companys information technology infrastructure to facilitate the tracking of objects. Although some proponents of RFID think that the first device of this type may have been invented as an espionage tool for the Russian Government in 1945, the first real usage of RFID devices predates that. During World War II the United Kingdom used RFID to distinguish returning English airplanes from inbound German ones. Radar was only able to signal the presence of a plane, not the type of plane (History of RFID tags, 2005). Although this instance was one of the first recorded usages of this type of technology, it would take thirty more years of work in different fields and applications involving RFID for it to become a viable business technology. The development of RFID came about through the need to enhance tracking and access applications in the 1980s in manufacturing and other environments. The process of utilizing RFID allows a company to improve its business processes, such as inventory management and supply chain management, through reduced labor costs, errors and handling costs (Cisco Delivers RFID Solution, 2005). With more timely and accurate answers to inventory control, companies can run much more efficient forecasting, production, and distribution operations. It allows companies to know exactly where their inventory is, how much of it is on hand, and when to re-order or supply. As RFID continues to develop, so do its applications in industry. Standards are changing enabling different companies will be able to co-link their products and tracking will be across product lines and company lines. Along with technological developments, declining prices are allowing more companies to take advantage of the technology. Proceedings of the 2006 Southern Association for Information Systems Conference 187 Technology Description As the field is known, Automatic Identification (Auto-ID) is a technology used to help machines identify objects and provide information about those objects through automatic data capture (Carlisle, 2004). The data must be converted into a digital form to be used by computer systems. Examples of Auto-ID which we see today include bar codes, smart cards, voice recognition, retinal scans, optical character recognition, and radio frequency identification. RFID is a generic term for the Auto-ID technologies that use radio waves to automatically identify individual objects. RFID uses a three-part technology comprised of a reader, a transceiver with decoder, and a transponder tag. The reader, which is typically attached to a computer, emits a radio signal that activates the tag and reads and writes data to it. As products are shipped, received, or stored, the information can be read and received by the reader. RFID has also been integrated into the EPCglobal Inc through the set of technologies known as the EPC Global Network. This organization is developing standards for data synchronization and communication of RFID data through the Electronic Product Code (EPC). The EPC stored on the RFID tag is a unique number that is specific to a product. The reader can retrieve the EPC from the tag and obtain information about the product not only specific to its location but also information on its production date, or origin (Carlisle, 2004). Generation 2 for RFID (Gen2) is an upgrade of the existing tags from the original RFID technology that allows the tag specifications to be standardized across platforms. Most of the upgrades to Gen2 technology were customer-driven because of the different systems utilizing RFID. The benefits of this Gen2 technology will mostly be falling prices of tags and more stable technology. Some of the other benefits of Gen2 tags are open standards which will allow tags to be available from multiple sources, and thus bring the price tag down. Additional benefits are memory and password enhancements, higher reliability, better security, and a read rate which is ten times faster than todays current tags (York, 2005). The importance of Gen2 is that prices should start to fall due to more competition, more stable technology to deploy, and the strong potential to cost-justify RFID projects based upon normal cost-benefit analysis. We are only just beginning to see the benefits and reaches of the RFID technology 12RFIDRFID at Dell - Manufacturing Tracking code and Computer assembly instructions are added to the tray. This determines the specific line to which the tray should go to. At every stage of the assembly, the tags are read by the antenna for specific instructions.RFID at Dell - ShippingOnce assembled and tested, production information is inserted into the tags and sent to a shipping station.At the shipping station, the RFID tag transfers data to the control PC.This control PC uses this information to print the appropriate label.Benefits of RFIDProduction stops have reduced dramatically.Labor can be allocated by minimizing repetitive activities.Returns due to wrong shipping of products have been minimized.13FIFOCustomer places an Order(By phone or through the Internet on www.dell.com)Dell processes the order Financial evaluation Credit Checking Configuration evaluations (checking the feasibility of a specific technical configuration) Sends the order to assembly plant (any one in Austin, or any other)Plants build, test & package the product (about eight hours)Dell typically ship all orders(no later than five days after receipt)2-3 daysThroughSUPPLIERSREVOLVERSCUSTOMERSDELLs SCM Management14Build-To-Order ModelRevolver or SLCs (Supplier Logistics Centers)Value Chain ProgramMajor Instruments For Inventory Model15

SupplierManufacturing

(SLC)WarehouseFactory / Merge CenterMaterial TransferRevolvers (for revolving inventory)

Customer

Local Suppliers

Dell Factory

Revolvers (SLCs)Suppliers

3 days of inventory - Inventory turns of 122 per year DeliverySupplier OwnedDell OwnedLean Inventory Model17Supply Chain Management briefly described: Our planning processes push components into a supplier logistics center (SLC) awaiting a pull signal generated by the replenishment processes in our manufacturing plants. The SLCs are managed by a third party logistics provider. Inventory in the SLCs is owned by our suppliers - there is an average of 8 or 9 days worth of inventory in the SLC. Local suppliers provide support through Vendor Managed Inventory programs.

The results of this simple yet effective supply chain model is inventory turns of 91.25 (or over 90 times a year). In addition we incur an error and omission expense of only 5 hundredths of one percent, and we have experienced 8X productivity improvements over the last three years.

The benefits to you of this case studied model is high quality, fast to market with new features, we build-to-order and dont have two or three months of inventory in the channel which were trying to pawn off when new features are introduced into the market by our suppliers, and lower cost operations means lower priced products.B2B Model Business model for dealing with large business entities. Server- to- server communication over internet integrating both supplier & buyer system. Shopping online with customers ERP Procurement Application with simultaneous up gradation. No duplicate information entry. OBJECTIVES Easy process, Less cycle time Less errors To quickly integrate customers who are capable today. Rapid deployment & connectivity. Providing hardware, software & consultation to help build a system which not only connects to Dell but even to other suppliers.

18CRM in DELL Dell maintains special DB of its top 50 global customer. Maintains a Global Data Repository for all of its customer. Uses DB compiled by Dun & Bradstreet for 500 global companies for selectively targeting sales efforts .

Real Time CRM When a customer calls in for placing order then customer service links directly to Dells Real Time inventory .

Depending on latest inventory data Dell can : Push Available inventory at lower cost. Promote latest/new products at higher cost. Provide add-on products with discounts .

19Suppliers Selection And Evaluation

SELECTIONQualityPriceDeliveryResponse to feedback.

EVALUATION CostDeliveryAvailability of technologyVelocity of inventoryWays in which they did business with dell over the internet.

ADVANTAGES

This process frees Dell from having to manage inventories and the costs associated with them.

The component inventory reduced from seventy days to thirty to forty days, then to twenty days, then to nearly zero.

Returns grew disproportionately as the carrying costs and obsolete stock is avoided.

Saves enormous amounts of money on purchasing components because the component prices drop by 3 percent per month.

Reduces handling cost. Common factors that drive up holding costs include opportunity costs, increased rent required for the space of the inventory, higher premiums to insure the inventory, and cost of obsolete goods.

20MIS In DELLDirect ModelValuable Web ModelService Chain ManagementI2 TechnologyRFIDLean Inventory ModelBusiness to Business PlanningCustomer Relation ManagementTHANK YOU.