Dell supply chain case study

Dell's first logo from to Dell's former logo, used from to Dell's logo before the acquisition of EMC, used from to Dell traces its origins towhen Michael Dell created Dell Computer Corporation, which at the time did business as PC's Limited, [12] [13] while a student of the University of Texas at Austin. InMichael Dell brought in Lee Walker, a year-old venture capitalist, as president and chief operating officer, to serve as Dell's mentor and implement Dell's ideas for growing the company. Walker was also instrumental in recruiting members to the board of directors when the company went public in Walker retired in due to health, and Michael Dell hired Morton Meyerson, former CEO and president of Electronic Data Systems to transform the company from a fast-growing medium-sized firm into a billion-dollar enterprise.

Dell supply chain case study

Lead time reduction and, consequently, cost efficiency are hard to achieve without smooth information flow.

Dell supply chain case study

Recommended partial implementation of Dell direct model, i. Introduction In the era of rapidly changing information technologies Ford Motor faces the challenge of changing its supply chain network. Supply chain team has split down the middle on the issue.

Some insist on virtual integration following Dell model in order to reduce working capital and exposure to inventory obsolescence without risking being left behind.

Issue Identification Ford Motor strategy puts emphasis on shareholder value and customer responsiveness. Virtual integration introduced by Dell has delivered on those dimensions. Implementation of emerging information technologies, including the Internet, and ideas from new high-tech industries into supply chain management is inevitable and vital for the future business development.

Dell supply chain case study

Degree of virtual integration is evaluated by addressing the following issues: Supplier management; Lack of up to date IT infrastructure; Direct contact with end users.

Environment and Root Cause Analysis Ford Motor is a global organization with operations spanning countries with over manufacturing facilities. In these conditions efficient data exchange, both internal and external is crucial for success. Direct model introduced by Dell Computer Corporation proved to be the best contemporary solution of the matter.

Please refer to Exhibit 1. Main strategic issue for Ford is control and management of the numerous links of the supply chain. To produce a single unit Dell needs under a hundred parts, whereas Ford requires over a thousand.

Unlike Dell which has less than 50 suppliers, Ford has several hundreds of tier-one suppliers. The shift toward long-term relationships with very capable suppliers who would provide entire vehicle sub-systems has significantly reduced the number of tier-one suppliers. They were provided with a range of techniques, e.

The Seven Sins

Tier-one suppliers are in charge of managing lower tier suppliers who usually do not have developed IT capabilities, which slows down the process. Please refer to Exhibit 2.

All of them are aimed at cost reduction and improving customer service. In order to evaluate current business environment and identify the best opportunities for development and growth, SWOT analysis was performed.

Please refer to exhibit 3. Alternatives A number of alternatives were analyzed regarding implementation of vertical integration.The leading source for e-commerce news, strategies and research.

Including webinars, blogs and e-retailer rankings, Top Supply Chain Management & IT - Supply Chain Management & IT Introduction Supply Chain Management (SCM) has become such an integral and essential part of every day business that entire fields of major are dedicated solely to it.

Ford Motor Company: Supply Chain Strategy This Case Study Ford Motor Company: Supply Chain Strategy and other 64,+ term papers, college essay examples and free essays are available now on Autor: grin • September 20, • Case Study • 2, Words (11 Pages) • .

Supply Chain Management And Supply Chains - Supply Chain Management is a concept that is based on two main essential ideas. The first one is that every product, that reaches an end user, denotes the collective effort of different organizations.

Supply chain organizations must cope with growing demand, supply and product disruption. To do this, supply chain leaders must transform their process.

Example of Tightly-Integrated Supply Chains: Dell Computers. Notable third-party PC manufacturer Dell is a study in vertical supply chain excellence.

Thesis,Dissertation Topics:Supply Chain Management,Procurement,Inventory,Logistics Management