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Dell & Supply Chain Management
SOM 123 M003 Team 1 – Spring 2004
Jessica Altman – Team Coordinator
Supply Chain Management & Customer Satisfaction
Jason Barton
General Business: Dell
Nick Beauregard
Dell Prospers Due to Effective IT Inclusion
Erica Bromberg
Public Relations & Dell
Trina Byers
Finance & Dell
Steve Caplan
Finance and Dells Competitive Advantage
Table of Contents
Group Report
Executive Summary
Focus of the Proposal
Research and Analysis:
Dells Competitive Advantage
Dells IT Tools
Dells Business Model
Dells IT Infrastructure
Our Recommendations
Resources
INDIVIDUAL ASSIGNMENTS
Jessica Altman – Supply Chain Management & Customer Satisfaction
Jason Barton – General Business: Dell
Nick Beauregard – Dell Prospers Due to Effective IT Inclusion
Erica Bromberg – Public Relations & Dell
Trina Byers – Finance & Dell
Steve Caplan – Finance and Dells Competitive Advantage
Executive Summary
Constantly changing technology directly impacts Dells 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 Dells 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.
Consider selectively adding other vendors to its supply chain management system.
Initiate a program to use “Customer Surveys” to gain market share.
Invest more in their Research and Development to develop new products and services.
Consider offering online data back-up capabilities.
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.
Enhance Dells customer support services.
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 costs to a minimum.
The primary method Dell uses in order to achieve and sustain their competitive advantage is a unique, direct to customer business model. The model is known as Dell Direct, referring to their relations with their customers as being “direct.” This model helps Dell focus on price for performance, customization, service and support, latest technology and superior shareholder value. Additionally, Dell is able to distinguish itself from its competitors with its customized on- demand manufacturing. With this customization, Dell is able to offer customers more value for their money by eliminating intermediaries in their procurement, manufacturing and distribution processes.
Dells primary resources include the most up-to-date technology and IT tools that allow it to successfully move along their superior supply chain and achieve the value they strive for. Dells value chain allows Dell and its suppliers to exchange information and interact with each other. The Internet, Dells key IT factor in its success, results in lower costs to customers than other retailers because customers tell Dell exactly what they want and Dell creates products for the consumer without experiencing wasteful resources in production.
Overall, it is evident that Dells competitive advantage lies in its Direct model success. Through Dells IT performance, which combines its resources, its relationship with suppliers and its consumer communication capabilities, Dell has developed one big advantage over its competitors.
Research and Analysis
Analysis of Dells Competitive Advantage:
Dell is officially the No. 1 computer systems company in the world. Dell is able to sustain