Wednesday, May 6, 2020

A Case Study of Dell Supply Chain Management - 4601 Words

------------------------------------------------- ------------------------------------------------- A Case study of Dell supply chain management Liu Xingrui 920514-7482 tml10xlu@student.hig.se Xiao Ziye 920801-6619 tml10zxo@student.hig.se Peng Yunyi 930204-9128 tml10ypg@student.hig.se Liu Siqi 921026-9628 tml10slu@student.hig.se Date Summary Dell’s supply chain is typical paragon among the computer manufacturing industry. The advantage of supply chain lead to a rather strong marketing performance for dell than it ever had been. This paper takes an overview of Dell’s supply chain and strategies used in supply development. Generally, three sections are involved in the analyses which are build-to-customer strategy,†¦show more content†¦And what’s more, the way of direct sale creates close relationship with each individual customer with the help of specific customer segmentation, which makes Dell knowing about the end user’s wants and preferences which allow the Dell to customize their orders and a more accurate and quickly responses to market. So the Dell can gain great source of competitive advantages by adding more add-on products and services which just fit the customers’ needs and thus gain a better customer satisfaction. And in order to dealing with such vast number of custom ers individually, a comprehensive system for the information change through the internet is needed to maintain the sustainable growth with the Dell. (Areti Manataki, 2007ï ¼â€°And the Dell’s direct sale model eliminates the bull-whip effect efficiently. Bull-whip effect is a phenomenon where orders to the supplier have a larger variance than sales to the buyer, and distortion of the demand propagates upstream members in an amplified form. In other words, it is demand distortion and variance amplification. Bull-whip effect is caused by two kinds of causes: operational causes and behavioral causes. Operational causes consist of demand signal processing, order batching, rationing game and price variations (Lee, Padmanabha and Whang, 1997) Bull-whip effect will still exist even operational causes are removed. 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