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    Mis Dell 1227965308312360 9

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    Nayana Makwana
    Dell is the second largest computer hardware company globally with annual revenue over $55 billion. It utilizes a direct sales model and builds computers to order, allowing it to maintain low inventory levels. Supply chain management is critical due to high material costs and fast changing technology. Dell uses RFID tracking throughout the manufacturing and shipping process to improve efficiency.

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    Mis Dell 1227965308312360 9

    Uploaded by

    Nayana Makwana
    54 views14 pages
    Dell is the second largest computer hardware company globally with annual revenue over $55 billion. It utilizes a direct sales model and builds computers to order, allowing it to maintain low inventory levels. Supply chain management is critical due to high material costs and fast changing technology. Dell uses RFID tracking throughout the manufacturing and shipping process to improve efficiency.

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    Dell is the second largest computer hardware company globally with annual revenue over $55 billion. It utilizes a direct sales model and builds computers to order, allowing it to maintain low inventory levels. Supply chain management is critical due to high material costs and fast changing technology. Dell uses RFID tracking throughout the manufacturing and shipping process to improve efficiency.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    54 views14 pages

    Mis Dell 1227965308312360 9

    Uploaded by

    Nayana Makwana
    Dell is the second largest computer hardware company globally with annual revenue over $55 billion. It utilizes a direct sales model and builds computers to order, allowing it to maintain low inventory levels. Supply chain management is critical due to high material costs and fast changing technology. Dell uses RFID tracking throughout the manufacturing and shipping process to improve efficiency.

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    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 14

    MIS @ DELL

    Dell at a Glance
    Globally 2nd in computer hardware design, manufacturing and Founded by Michael Dell in 1984. 1987 --first computer systems company to offer next-day, on-site product

    distribution with a market share of around 16%.(HP is 1st with 19%)

    service .
    Greater than $50 Million sales per day through the internet with yearly

    revenue of $55.908 Billion with employee base of 78,000.


    Ventured in areas of storage products, workstation systems, online

    technical support, appliance servers, network switches, standardsbased point-of-sale offering for retail customers, recycling .
    Shipped more than 10 million systems in a single quarter (Q4, FY06)

    Dells Direct Model

    Direct relationship, most efficient path Low cost and best value Built to order Customized systems Superior, tailored service and support Highest quality and most relevant technology

    Dells Value Web Model

    Why SCM is so Important in PC business


    Material costs account for 74%($21 billion) a year for

    dell.
    Improving SCM by 0.1% has bigger impact than

    improving manufacturing process by 10% .


    Changing technology obsoletes Materials value by

    almost 1% per week .


    Rely on market forecasting to drive Production.
    Technological breakthroughs cause very short Product

    life cycles .

    Competitors Disadvantages vis--vis Dell


    Need to hold inventory at each step in value chain .

    Have to pay suppliers first before getting paid from customers

    .
    Caught with short supplies of hot products- lost sales.

    Stuck with excess inventories of slow selling products .

    With about 2,000 product transitions a year, the ability to

    reduce product time to market is critical.

    Dells Competitive Advantages


    Dell is having one of the best SCM in the world.
    90% supplies ordered online using integrated websites of

    supplier and Dell (B2B).


    95% of suppliers situated very close to assembly plant hence

    coordination is easier.
    Dells factories have only 7 hrs worth of inventory for most items

    whereas industry wise it is around 10 days.


    15 suppliers provide almost 85% of all supplies. Dell gets paid by customers and then pays to its suppliers.

    Dell Chooses i2 SCM S/W package


    Dell chose i2 Technologies for its SCM system. i2 serves almost 70% of the SCM market. Every 20 sec the S/W aggregates orders, analyzes material requirements ,compares Dells on-hand inventory with its suppliers inventory and then creates a supplier bill of material to meet its order needs .

    Instead of forecasting the daily supply needed, Dell receives the exact material every two hours to fulfill actual customer orders.

    RFID @ DELL

    What is RFID
    RFID stands for Radio Frequency Identification Devices. RFID is a 3 part technology consisting of: A reader A receiver with decoder A Transponder

    RFID applications

    RFID at Dell - Manufacturing


    Tracking code and Computer assembly instructions

    are added to the tray.


    This determines the specific line to which the tray

    should go to.
    At every stage of the assembly, the tags are read by

    the antenna for specific instructions.

    RFID at Dell - Shipping


    Once assembled and tested, production information

    is inserted into the tags and sent to a shipping station.


    At the shipping station, the RFID tag transfers data

    to the control PC.


    This control PC uses this information to print the

    appropriate label.

    Benefits of RFID
    Production stops have reduced dramatically. Labor can be allocated by minimizing repetitive

    activities.
    Returns due to wrong shipping of products have

    been minimized.

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