Dell's Supply Chain Management Practices
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(Case Code: OPER063) click on the button below, and select the case from the list of available cases:
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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OPER063 |
For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling ChargesThemes
Supply Chain Management, Direct Model, PC Retailing |
| Case Length |
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26 Pages |
| Period |
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1991-2007 |
| Organization |
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Dell Inc. |
| Pub Date |
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2007 |
| Teaching Note |
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Not Available |
| Countries
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US |
| Industry |
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Hardware |
Abstract:
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US-based Dell Inc., one of the leading PC manufacturers in the world, pioneered
a unique model of selling PCs directly to the consumers, bypassing the
resellers. The model is popularly known as the Direct Model. The case describes
this model in detail and explains how it enabled Dell to manage its supply chain
efficiently.
In the third quarter of 2006, Dell's major competitor HP had
overtaken the company in terms of market share to become the top PC manufacturer
in the world. Industry experts opined that lack of new products, poor customer
service, increasing support costs, lack of retail presence and the limitations
of the Direct Model were some of the reasons for Dell's poor performance.
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Dell's Direct Model, which was company's
strength, lost its sheen, with the competitors gaining better
supply chain efficiencies and opting for a mixed sales model.
The case examines how Dell planned to consolidate its supply
chain and manufacturing activities globally and venture into
retail business in order to regain its leadership status.
Issues:
» Study and understand Dell's Direct Model
» Critically examine the limitations of Dell's Direct Model
» Understand the problems faced by Dell in late 2006 and 2007
» Critically evaluate Dell's retail strategy
Contents:
Keywords:
Dell Inc., Supply Chain Management, Direct Model, Global
Operations Organization, Global Procurement, Distribution Models, Inventory
Management, Vendor Managed Inventory, Suppliers Logistics Centers, Sales
Forecasts, Valuechain.dell.com, Demand Shaping, Order Management System, Working
Capital, Retail Format
Dell's Supply Chain Management Practices
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