Dell computers a case study in low inventory

Tweet From purchase of raw material to delivery of final product to the customer, a supply chain has different stages and the demand uncertainty is different for each stages.

Dell computers a case study in low inventory

A collection of resources and commentary providing an introduction to supply chain management and related systems for students, practitioners, and anyone else interested in learning more about how to design, manufacture, transport, store, deliver, and manage products.

Monday, September 9, Dell's inventory management Zhou Joe Ye Inventory is marked as asset in accounting statement, but it has many disadvantages. Maintenance cost is needed to store the inventory, and financial loss called write down in accounting term could possibly occur due to poor inventory management if some goods in stock expire or damaged.

So control the volume of inventory is very crucial and would cause severe loss if it is poorly managed. There are several interesting cases of inventory management. Dell required all its suppliers ready for any raw materials orders at any time.

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On the other side, Dell built a strong and effective sales channel for its products. It used media and Internet to directly sell computers to consumers. This strategy, which eliminated the intermediate distributers, lowers the product price and made Dell more competitive.

And more important, it simplified the supply chain and made it easier to control. The inventory of assemble computers of Dell was always significant lower than its competitors [i].

However, in recent years, Dell's performance is not that outstanding as before.

Dell was lauded as a supply-chain wizard, and its lean, low-inventory operation was the envy of PC vendors. Tying up less capital in inventory amplified its return on equity. Tying up less capital. What is "Strategic Fit"? - in a business scenario "strategic fit means aligning supply chain strategy with competitive strategy." Companies build a competitive strategy to target a set of customer segments and build strategies to satisfy needs and priorities of those customer segments. Let’s keep it simple: Inventory is the lifeblood of the supply chain. It’s what flows from node to node. And at each node it’s critical to figure out that perfect balance of .

Since we have moved into the mobile age, holding the best supply chain strategy won't help too much if the core technology is falling behind. Can we consider supply chain as a strong and solid base, while technology innovation is the real source of power to move on?Another notable point of Dell is that it delivers products faster than its competitors do.

RESEARCH AIMS: The main aim of this research is to explore the effects of inventory management on the supply chain through the case study of Dell.5/5(6).

Dell computers a case study in low inventory

to Dell, order a computer, and have it arrive a week later became the cornerstone of the business. In , Dell expanded their direct order model to the Internet, and their success in this medium quickly became legendary.

Scott Eckert, Director of Dell On-Line, . Jun 29,  · A study by Dell found that OptiPlex computers affected by the bad capacitors were expected to cause problems up to 97 percent of the time over .

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By working in close contact with the three integral pieces, Customer, its employees & Suppliers Dell came up with ways to reduce inventory to as low as "8" days while other companies had inventory as high as "40" ph-vs.coms: Join our community of Direct2Dell blog readers and never miss another post by subscribing to our email newsletter.

Fill out the brief form below and you will get a confirmation e-mail for your subscription. JIT manufacturing is a powerful and proven system of producing products efficiently while keeping costs low. Some of the most successful companies in the world have used this philosophy to improve their manufacturing processes and better meet customer demand.

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