Dell supply chain management

Essay by mcdonaldUniversity, Master'sA+, April 2006

download word file, 28 pages 4.2

Executive Summary

Constantly changing technology directly impacts Dell's success and future. Although Dell is an extremely successful company, there are areas of improvement and enhancement that should be considered. After a thorough analysis of Dell's IT tools, business model, IT infrastructure and competitive advantage, we have developed seven key suggestions. By implementing these recommendations, Dell can keep its high ranking in the competitive computer industry by increasing customer satisfaction, competitive advantage and superior value chain, without changing its principal operations to achieve these goals.

Our recommendations allow Dell to enhance their supply chain management system, increase customer service, gain market share, and increase revenue.

1. Consider selectively adding other vendors to its supply chain management system.

2. Initiate a program to use "Customer Surveys" to gain market share.

3. Invest more in their Research and Development to develop new products and services.

4. Consider offering online data back-up capabilities.

5. Implement a program to reduce errors in their direct Internet ordering system and create a "Clearance" area on its website for systems produced in error.

6. Enhance Dell's customer support services.

7. Increase their company recognition through a national advertising campaign.

Focus of the Proposal

Dell Computer is a leader in the e-commerce computer hardware market. It is an established brand that leads personal computer manufacturers both in U.S. sales and overall online sales. Its trademark method of selling products to customers, corporate and individual consumers, emanates from the Dell Direct model, a Web-enabled infrastructure that allows customers to customize their PCs and order other products they need or desire. This virtual integration structure eliminates the need to manufacture everything, and instead uses the power of the Internet to share and exchange information with suppliers and vendors to build a truly superior supply chain that keeps inventory turnover low and...