BÀI BÁO CÁO-SUPPLY CHAIN MANAGEMENT

Case Study – Supply Chain at Dell • Dell has integrated various operational components like logistics, manufacturing, distribution, inventory management to develop an effective supply

SUPPLY CHAIN MANAGEMENT

Divya Bhatia 09020241071

Gautam Totade 09020241073

Ankita Chhajlani 09020241104

Kisan Agarwal 09020241106

Soumya Chakrabarti 09020241109

Ali Amjad Rizvi 09020241113

Case Study – Supply Chain at Dell

• Dell has integrated various operational

components like logistics, manufacturing,

distribution, inventory management to develop

an effective supply chain strategy

• Dell has asked its distributors to keep inventories within 15 minutes of manufacturing locations Advantages:

• Loss due to obsolescence is minimum

• Customers always get latest products

• Keeps them ahead of competition

Innovations at Dell

• Account Selection

• Demand Management

• Product life cycle management

• Supplier Management

• Forecasting

• Liquidity Management

Data collected by questioning the

retailers in Pune

Questions Discussed

• What are the different steps in the supply chain

of a laptop?

• What is the mode of transport at each stage?

• Who insures the product at each stage?

• What is the mode of Payment?

• How much inventory is kept at each stage?

• When is the product dispatched from the

company?

• How does the money travel from customer to manufacturer?

FLOWCHART

Manufacturing Unit

• United States

• Sent to assembly unit by Cargo

Assembly Unit

• Chennai Assembly unit

• Sent to Distributor by Blue dart courier

Distributor

• Inventory is decided on the past fortnight sales

• Payment is done on either cash or credit basis

» Parts are produced in US and being shipped to Chennai assembly unit by AC cargo containers

» This is done through MAERSK COMPANY

which is a general shipping company

» Here the insurance is done by the exporter in our case DELL, in case of damage occurring

during shipping

Manufacturing

Unit

Assembling

Unit

» Here the parts are assembled according to the configuration provided by the distributor

» Configuration is finalized depending on the

demand in the market, which is a special

feature provided by DELL

» The finished product is packed, sealed and

sent through courier, in our case BLUE DART,

to the Distributor

Assembling

Unit Distributors

» These are sent in individual boxes and not

clubbed together in a large container

» The inventory is decided by the distributor on the basis of past fortnight sales

» That is how the number of products are

demanded, in our case 50 laptops are kept in

a warehouse behind his shop

» Here the insurance is done by the distributor

Assembling

Unit Distributors

» The payment is either cash or credit

» In case of credit, a credit cycle is determined, which can further be increased on the basis of the level of trust between them

» Payment possible through EMIs

» Retailer further orders from the distributor,

according to the demand generated through his customers

» After purchasing from the distributor the

retailer has to get the product insured against any kind of damages

» The retailer has a lower inventory than the

distributor since the product is sold directly to the consumer

Sample Product Specifications

Dimensions : 19.10 X 36.10 X 41.90 cms

Volume Weight : 4.82 Kgs

Density weight : 4.60 kgs

Model : Dell Studio 14

Data Collected from Pune Retailers

Ashok Taneja

Employed in : Cybernet IT, Pune

Brief Profile: An exclusive HP-Compaq retailer

Company Profile:

• Cybernet has two retail outlets in Pune—the 1,100 sq ft flagship

store and 400 sq ft satellite store—and a shop-in-shop at a

prominent mall in Pune

• Cybernet’s revenues jumped from Rs 13.4 crore to Rs 22 crore in 05-06 with retail contributing nearly 50 percent, sub-distribution providing 30 percent, and remaining coming from corporate selling

• The robust growth was due to doubling of its sales of portables

Cybernet recorded on an average monthly sales of 75 notebooks and 30 desktops, tilting the scales in favour of notebooks

Innovation by CyberNet IT

• Introduced mobile vans to reduce service turnaround time to 4 hrs

• Payment of EMIs by collaboration with

Financing companies

Highlights

• Uni-brand strategy selling HP-Compaq

products

• Doubled notebook sales and recorded a jump

of 85 percent in turnover

• Set up laptop service and repair centre for all brands

• Launched mobile service centre for faster

turnaround

References

• Mr Angad Prem

VP, House of Laptops

• Redington Warehouse

Shivaji Nagar, Wakde Wadi, Pune

• Mr Ashok Taneja

Nehru Place, Delhi

www.softechcomputers.in