Wednesday, December 18, 2019
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 Dellââ¬â¢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 Dellââ¬â¢s supply chain and strategies used in supply development. Generally, three sections are involved in the analyses which are build-to-customer strategy,â⬠¦show more contentâ⬠¦And whatââ¬â¢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 userââ¬â¢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 customersââ¬â¢ 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 Dellââ¬â¢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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