Dell_scm_strategy

We have collected data and the Business Process Models for various OEM operating in the PC industry like HP, IBM, and APPLE. The principle source of these data is the 10K report, the industrial landscape section of the Hoovers and Mergent database in which each company has listed its own business models, its strategic relevance to improve the bottom line of their business. The collected data deal encompasses all the three element of SCM: Demand, Supply and the Inventory management. The data includes but is not limited to the innovative measure taken by these industry leaders to cut cost in all three major area of SCM, Supply, Demand and Inventory management, the percentage cost allocation of these three into their total business operation and the industrial landscape comparison.

The comparison of these data has revealed how developing a supply chain strategy without a true understanding of the business case and value propositions reduces the competitive advantage in this highly price sensitive industry. The advent of internet based information system has also enabled utilizing different or new resources in the operational model development that weren't exposed to the original business strategy.

Dell's business strategy has been differentiation through low cost, speed of delivery, and customer service by integrate logistics, manufacturing, distribution, inventory management. Dell's SCM strategy is perfectly aligned with its business strategies. Some of specific strategy has been just-in-time manufacturing model which reduces the inventory to bare minimum, keeping inventories within 15 minutes of manufacturing locations, building the computers to a customers specification, and delivery within a matter of days, Business Performance Contracts (BPCs),

To start with, we will carry out an industrial comparison of these industries by using the data from 10 K reports, the cost component of each segment of the value chain and the SCM tools used to improve the bottom line. Next we will be analyzing the various SCM tools employed