dell logistics - Copy

DELL LOGISTICS NETWORK:

DELL LOGISTICS NETWORK SUBMITTED TO: PROF. DEEPAK JAKATE

GROUP MEMBERS:

GROUP MEMBERS GURUPRASAD SHEJWAL 33 SUMIT TAMRAKAR 38 KAMALA KANTA KAR 12 JITENDRA KUMAR 46 SOURAV SEN 45 CHANDAN MISHRA 17

INTRODUCTION:

INTRODUCTION Founded by: Michael Dell (CEO) in 1984. The company is well known for its innovations in supply chain management . Dell is selling computer systems directly to customers. This direct business model eliminates retailers that add unnecessary time and cost, or can diminish Dell's understanding of customer expectations.

Slide 4:

The direct model allows the company to build every system to order and offer customers powerful, richly-configured systems at competitive prices PRODUCTS:- Laptop, Servers, Data Storage Devices, Network Switches, Software, and Computer peripherals.

DELL LOGISTICS NETWORK:

DELL LOGISTICS NETWORK Dell’s new and improved design for a channel distribution model: Order processing Pre-production Accessories ready Configuration Test Boxing Distribution preparations Shiping (transportation)

TRANSPORTATION SYSTEM DESIGN:

TRANSPORTATION SYSTEM DESIGN Optimize inbound and outbound transportation networks Collaborate with the best logistics and transportation providers Mode of transportation – By Ship By Rail By Air “GREEN” INITIATIVES

Transport Network Options :

Transport Network Options DIRECT SHIPMENT NETWORK CUSTOMER CUSTOMER CUSTOMER CUSTOMER DELL ASSEMBLEPLANT DELL ASSEMBLEPLANT DELL ASSEMBLEPLANT DELL ASSEMBLEPLANT DELL WEB PRODUCT FLOW INFORMATION FLOW

MIS FOR COMPANY :

MIS FOR COMPANY Dell chose i2 Technologies for its SCM system. Every 20 sec the S/W aggregates orders, analyzes material requirements ,compares Dell’s on-hand inventory with its suppliers’ inventory and then creates a supplier bill of material to meet its order needs .

STORAGE:

STORAGE Dell has competitive advantage of lowest in the Industry cost structure, and this cost Structure due in part to DELL raw materials management strategy. e-VMI(Vendor management inventory) and JIT combination of management techniques increasingly zero inventory. Dell receives the exact material every two hours to fulfill actual customer orders. Dell’s factories have only 7 hrs worth of inventory . the original parts are directly sent to the assembly line, and through " Kanban management" technology in the supply chain on various aspects of the distribution

DISTRIBUTION :

Dell has six production unit : Austin, Texas, USA Nashville, Tennessee, USA Eldorado do Sul , Brazil Penang, Malaysia Xiamen, China Limerick, Ireland Chennai .India They carry large quantities of different products, to increase their leverage when dealing with their customers. 90% supplies ordered online using integrated websites of supplier and Dell (B2B). DISTRIBUTION

Continued….:

Continued…. Virtual integration Innovation on the assembly floor Disintermediation (cutting out the middleman) Enhancing customer value

DISTRIBUTION LENGTH OF SUPPLY CHAIN:

DISTRIBUTION LENGTH OF SUPPLY CHAIN Supplier Factory Warehouse Customer

Benefits to company by such distribution :

Benefits to company by such distribution CASH: Dell maintains a negative cash conversion cycle means the payment receive for product before it has to pay for material. COST: 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

Slide 14:

Bypassing the reseller channel that causes further cost reduction to company. CRM: Direct customer relationship is the key to Dell’s business model . DEMAND FORECAST : Dell additional advantages is try to forecast demand and ship products based on those forecasts.

Benefits to customer by such distribution :

Benefits to customer by such distribution Tailored offerings from Dell in terms of add-on products and services. Very customizable systems at an affordable rate, since Dell manufacturing builds specifically for each customer.

THANK YOU:

THANK YOU