Supply Chain Of Dell

SUPPLY CHAIN MANAGEMENT

PRODUCT : LAPTOPS Divya Bhatia

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Gautam Totade

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Ankita Chhajlani

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Kisan Agarwal

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Soumya Chakrabarti

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Ali Amjad Rizvi

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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

» 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

» 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

» 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

» 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 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 HPCompaq 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