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Presented by Jithin Ignatius Divya Ann Thomas Revathy Suja Rintu Raju ool Of Communication & Management Studies –SCMS Coc

Dell's Innovative Supply Chain

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Deals with the effective supply chain Dell pocess, its order processing, reverse logistics & customer focus

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Page 1: Dell's Innovative Supply Chain

Presented by

Jithin Ignatius Divya Ann ThomasRevathySujaRintu Raju

School Of Communication & Management Studies –SCMS Cochin

Page 2: Dell's Innovative Supply Chain

The Case

• Supply Chain Event Management (SCEM) Application

• Viewlocity’s “TradeSync” Software• For optimized Performance• Reverse Logistics• Integrating with Supply Chain

Partners

Page 3: Dell's Innovative Supply Chain

About Dell Inc

• Worlds No:1 Computer Systems Company• Manufactures –Desktops, Laptops,

Workstations, Servers & Data Storage solutions

• Head Quarters – Round Rock ,Texas• Ranks No:36 in fortune 500 Companies• Ranks No: 4 in Fortunes most admired lists of

companies

Page 4: Dell's Innovative Supply Chain

An Edge Over Others• Customer Focus• Innovative business model• Technology innovation• Product innovation• Supply chain management• Direct Selling• Pioneers In Adding e-commerce Capability

• Launched www.dell.com in1994• Recorded $ 1 million in online sales• Half Of the revenue is from Online Sales

Page 5: Dell's Innovative Supply Chain

Direct Supply Chain Model

• Receiving orders directly from customers• Manufacturing to the customer’s requirements• Delivering it within days• Dell also implemented just-in-time (JIT) inventory-

management successfully. • Dell’s JIT practices were based on the “pull”

system • Advantages

• Price for performance• Customization• Latest Technology• Service & Support

Page 6: Dell's Innovative Supply Chain

Implementation

• Dell manufacturers 50000 computers Per Day

• Maintains inventory worth 4 days• Implemented DSi2 for

maintaining The supply Chain• Changed the Trend from

make-to-stock to make-to-order Pattern

Page 7: Dell's Innovative Supply Chain

Legacy orderManagement System

SuppliersLogistics

Center

Production Planning & Scheduling

Logistics Provider

Dell’s Production House

Hubs

Order

Page 8: Dell's Innovative Supply Chain

• Service Parts Management• Servigistics

• Reverse logistics• Network repair Logistics• Repair cycle time dropped from

43days 24 days 17 days

Page 9: Dell's Innovative Supply Chain

‘Direct Repair Service Handling

ContractService

ContractService CustomersCustomers

CSRCSR

3PL3PLWarehouse

Repair Serv

ice Request

Servicing

Parts DeliveryShipment Order

Service Order

Service Request

Message

PartsOEM

Ship returned Parts

Invoice

Receipt

Page 10: Dell's Innovative Supply Chain

Disadvantages

• High Cost Involved- $350 million• Time Lag – 60 Days• Decrease in Customer Focus• Need for Maintaining Stock in Ware

House

Page 11: Dell's Innovative Supply Chain

Repair Services Handled by OEM Suppliers

CustomersCustomers

CSRCSR

ContractService

Warehouse

Repair Serv

ice Request

Servicing

Parts Delivery

Service Order

Service Request

Message

PartsOEM

3PL3PL

Invoice

Receipt

Page 12: Dell's Innovative Supply Chain

Scenario After SCEM Deployment

CustomersCustomersCSRCSR

ContractService

Repair Service Request

Servicing

Parts Delivery

Ser

vice

Ord

er

PartsOEM

3PL3PL

Invoice

Receipt

Page 13: Dell's Innovative Supply Chain

Advantages

• Provides Visibility• Smooth Execution of Process• Reduction In Cost• Ensuring Customer Support

Page 14: Dell's Innovative Supply Chain

Thank You For Your Patient

Listening!!