dell logistic

1. Effective
logistic
company
ABHERI DAS|
MBA(01)

2. History
 Started by Michael Dell at the University of Texas in 1984
 Grossed $75 million in sales in 1985
 1987 sales had reached $160 million.
 1988 the company went public and sold 3.5 million shares
with each share being priced at $8.50.

3. Michael Dell
 College dropout
 Changed how computers were sold
 Started his business with $1000 in capital
 Now worth $17.3 billion

4. PROCESSES OF SUPPLY CHAIN
1
• Procurement
2
• Customer order and
Manufacturing cycle

5. COMPARISON
General supply
chain
• Procurement
• Manufacturing
• Replenishment
• Customer order
Dell supply chain
• Procurement
• Customer order
and
Manufacturing
cycle

7. How do they do it?
Dell’s success is a combination of:
 Direct Sales
 Build-to-order
 Supplier Integration
Together these allow for maximum effectiveness with minimum cost

8. Direct Sales
A direct sales system allows Dell to:
 Cut costs
 Build relationships with its customers
 Deliver exactly what the customer wants
Dell
Customer
Supplier
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D
C
T
O
R
D
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9. Build-to-order

10. Build-to-order
A build to order system allows Dell to:
 Increase inventory velocity
 Minimize inventory costs
 Build exactly the computer that its customers want
 Minimize the need for forecasting

11. Supplier Integration
Supplier integration allows Dell to maximize the benefit of its
other core competencies
Here is how they do it:
 Location of supplier warehouses
 Extranet
 Meetings with suppliers

12. Circulars Pioneer Finalist - Dell

13. Questions?