DELL: logistics research report

Résumé du document

Dell has revolutionized the industry in the last 20 years, to make computing accessible to customers around the globe, including businesses, institutional organizations and individual consumers. Because of Dell's direct model, and the industry's response to it, information technology is more powerful, easier to use and more affordable, giving customers the opportunity to take advantage of powerful new tools to improve their businesses and personal lives. Dell has demonstrated this effect time and again as it enters new, standardized product categories, such as network servers, workstations, mobility products, printers and other electronic accessories. Nearly one out of every five standards-based computer system sold in the world today is a Dell. This global reach indicates that our direct approach is relevant across product lines, regions and customer segments.

Extraits

[...] IV) Dell's major disadvantages Despite the numerous advantages of Dell logistics system, there are some points of failure. With such a timely and planned logistic system, any interruption in the supply of component can have an impact on Dells short-term delivery. Dell is using suppliers because of the unavailability of alternative sources. But if these suppliers experience some difficulty, this would result in a domino effect on Dell. The firm's production requires a very high level of quality, in relation to components, which are sometimes from third party suppliers. [...]

[...] listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell sells more systems globally than any computer company, placing it No on the Fortune 500. Dell's climb to market leadership is the result of a persistent focus on delivering the best possible customer experience by directly selling standards-based computing products and services. Revenue for the last four quarters totalled $ 57.4 billion and the company employs approximately 75,100 team members around the globe. [...]

[...] While Dell does not manufacture its own components or subassemblies, it does handle final assembly for nearly all of its desktop PCs and servers. Notebook PCs are manufactured by Taiwanese manufacturers Quanta and Compal. In some cases the notebook PCs are shipped complete to the final customer. However, Dell is increasingly ordering base units from its suppliers and doing final configuration of notebooks in order to offer more configuration options to customers. Dell organizes manufacturing by region, operating one or more assembly plants to serve its major markets. [...]

[...] II) Dell's Logistics system The overall system Dell sells 90% of its PCs directly to the final customer, largely bypassing the reseller channel that represents most of the PC sales in the world. This direct customer relationship is the key to Dell's business model, and has shown strong advantages in comparison with the traditional indirect sales model. Dell's direct relationship with the customer allows the company to customize its products according to its customer needs, as well as offering add-on products and services and to use the Internet to offer a great variety of customer services In addition, Dell's PCs are built to customers' specifications upon receipt of an order, giving Dell additional advantages over indirect PC retailers who must try to forecast demand and ship products based on those forecasts, what can generate inequalities between offer and demand Dell's direct sales and build-to-order model has achieved superior performance in the PC industry in terms of inventory turnover, reduced overhead, cash conversion, and return on investment. [...]

[...] Dell has consistently led its largest competitors in each of those categories. Concerning logistics Dell Gets Domestic By locating assembly, shipping sites closer to home, Dell hopes to keep its advantage in U.S. market Dell is putting some of the "U.S." back in the U.S. computer industry while speeding production and delivery cycles. The computer maker will open its third domestic plant in the fall of 2005, a step that could have significant supply chain implications. Dell is counting on logistics efficiencies generated by its direct-to- consumer sales model to offset higher U.S. [...]