The Supply Chain of Dell Computers

Essay by zalmahroUniversity, Bachelor'sB+, November 2007

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INTRODUCTIONMeeting customers' expectations and appealing to their needs and wants is the highest organizational objective for an ideal company. Where the aim is maximizing profits, management of supply is integral. Companies that maintain a robust supply configuration with minimal increase of cost to the customers are bound to be the most successful. In researching for this paper I found one company whose supply chain management struck me as being the most comprehensive and most efficient; that company is Dell Computer. Although its supply chain management is impressive, still there is room for improvement. This paper will present the situation analysis of Dell and will discuss the major issues and problems that Dell has been able to tackle or is yet to conquer in order to achieve its objectives. Where appropriate solutions for the major challenges will be analyzed and alternative solutions and recommendations will be given. Furthermore, the physical implementation route will be discussed and finally a conclusive summary will be given.

Supply Chain Management DefinedSupply chain is basically an integration of how raw materials, intermediate products and final products are obtained, transformed, sold and how transport links between production locations and retailers are handled. It is the process of A to Z whereby a product is designed, raw materials acquired, product manufactured and distributed to retailers or shipped directly to customers. As products pass through the supply chain, value addition ought to be the company's major objective and the organization must correctly disperse the product in the proper quantity, accurate specifications and on a timely fashion. Last but not least, all these activities must be carried out and completed at competitive prices (http://www.duxbury.com).

Dells' BackgroundDell is company started by Michael Dell in 1984 with the central theme of selling custom built computers directly to customers. Dell is currently the...