An Introduction to supply chain management
In this global village there is cut-throat competition. To survive in this world the organizations should design their product in such a way that which gave maximum satisfaction to the customers. The customer will prefer the products which are offering at low cost with sound quality and easy available in the market. There arise the need for supplay chain management.
Today, executives are challenged to think and reflect on a new set of concepts. Among the most important is the choice of supply chain. Many companies have enjoyed significant success due to the unique way in which they have organized their supply chains. However a good supply chain design of one company may not work for another. Unless supply chains are aligned properly, it will spoil the company’s cost-saving opportunities, revenues, competitive advantage and asset productivity. Choosing the right chain for the right business requires thinking strategically about how the business operates and what company needs, which includes the design and strategy used in managing the supply chain.
Today companies use new technologies like computer integrated manufacturing, the Just-in-Time approach, total quality management, and more besides. Software, tools, and industry insight helps them to generate the full value of business relationships, and use them to advance the objectives.
Supply chain management will help the organization to increase efficiency and reduce distribution costs, make business relations productive, manage cash inflows and outflows and grow business into new markets.
Analysis of Dell’s Competitive Advantage:
Dell is the world’s leading computer systems company in the world. Dell is able to make a competitive advantage over its competitors in the computer industry because of its extremely efficient supply chain management system. They make use of modern technologies and internet facilities for that purpose.
Dell implements Just-In-Time inventory system(JIT) for its operations. They are able to reduce the stock levels only need for 6 days which helped them to achieve greater profit margins and increased profits . Inventory is current asset in which lot of money is being invested. Since Dell only operates with 6 days worth of inventory, they are able to cut costs on warehousing, hiring people to track and maintain inventory. It helped them to mange their cash inflows and outflows effectively.
Dell uses their website (www.Dell.com) to take customer’s orders. Dell’s effective use of the internet made distinct from others. Dell makes their website extremely consumer friendly to offer an easy order process to the customers Though that site they receive orders directly from customers. The direct sale method creates a deeper relationship with the customers and provides them better service, convenience, and efficiency. There high customization which make customers delighted.
In addition to these Dell has created their “Premier Page”. This page was made for Dell’s larger accounts including corporations, the Government, and educational institutions. This webpage provides dynamic price upgrades, easier navigability, and a greater range of available upgrades/options. Customer relationship management software keeps close tabs on the types of computers that customers are buying (Pizinger). It helps them in easier customer order processing . They also use the internet to build better relationships with their suppliers. This helps them to implement JIT effectively.
Dell uses solutions from i2 Supply Chain Management. “It provides real-time factory scheduling and inventory management, so employees can generate key reports based on accurate and timely data, pinpoint inventory on the factory floor, and receive supplier deliveries on a true just-in-time basis (i2 supply chain management systems).” We can see that e-commerce and efficiency of supply chain management helped Dell to make a competitive advantage over others.
SREEJITH.C.K
In this global village there is cut-throat competition. To survive in this world the organizations should design their product in such a way that which gave maximum satisfaction to the customers. The customer will prefer the products which are offering at low cost with sound quality and easy available in the market. There arise the need for supplay chain management.
Today, executives are challenged to think and reflect on a new set of concepts. Among the most important is the choice of supply chain. Many companies have enjoyed significant success due to the unique way in which they have organized their supply chains. However a good supply chain design of one company may not work for another. Unless supply chains are aligned properly, it will spoil the company’s cost-saving opportunities, revenues, competitive advantage and asset productivity. Choosing the right chain for the right business requires thinking strategically about how the business operates and what company needs, which includes the design and strategy used in managing the supply chain.
Today companies use new technologies like computer integrated manufacturing, the Just-in-Time approach, total quality management, and more besides. Software, tools, and industry insight helps them to generate the full value of business relationships, and use them to advance the objectives.
Supply chain management will help the organization to increase efficiency and reduce distribution costs, make business relations productive, manage cash inflows and outflows and grow business into new markets.
Analysis of Dell’s Competitive Advantage:
Dell is the world’s leading computer systems company in the world. Dell is able to make a competitive advantage over its competitors in the computer industry because of its extremely efficient supply chain management system. They make use of modern technologies and internet facilities for that purpose.
Dell implements Just-In-Time inventory system(JIT) for its operations. They are able to reduce the stock levels only need for 6 days which helped them to achieve greater profit margins and increased profits . Inventory is current asset in which lot of money is being invested. Since Dell only operates with 6 days worth of inventory, they are able to cut costs on warehousing, hiring people to track and maintain inventory. It helped them to mange their cash inflows and outflows effectively.
Dell uses their website (www.Dell.com) to take customer’s orders. Dell’s effective use of the internet made distinct from others. Dell makes their website extremely consumer friendly to offer an easy order process to the customers Though that site they receive orders directly from customers. The direct sale method creates a deeper relationship with the customers and provides them better service, convenience, and efficiency. There high customization which make customers delighted.
In addition to these Dell has created their “Premier Page”. This page was made for Dell’s larger accounts including corporations, the Government, and educational institutions. This webpage provides dynamic price upgrades, easier navigability, and a greater range of available upgrades/options. Customer relationship management software keeps close tabs on the types of computers that customers are buying (Pizinger). It helps them in easier customer order processing . They also use the internet to build better relationships with their suppliers. This helps them to implement JIT effectively.
Dell uses solutions from i2 Supply Chain Management. “It provides real-time factory scheduling and inventory management, so employees can generate key reports based on accurate and timely data, pinpoint inventory on the factory floor, and receive supplier deliveries on a true just-in-time basis (i2 supply chain management systems).” We can see that e-commerce and efficiency of supply chain management helped Dell to make a competitive advantage over others.
SREEJITH.C.K
