Dell pioneered an innovative inventory management system focused on minimizing inventory and maximizing profitability. The system utilizes a build-to-order philosophy with just-in-time inventory practices and zero inventory warehouses. Components are sourced globally from suppliers and assembled only after receiving customer orders. This allows Dell to fulfill customized orders within days while avoiding the costs of storing unsold inventory. The system transformed Dell's supply chain from maintaining weeks of inventory to generating over $15 million in sales daily with under one day of inventory on hand.

1. Presentation on
‘How Dell Manages its
Personal Computers (PC) Inventory’
Presented to:
Sir Asif Murtaza
Semester – I
KUBS Batch - II

2. TransformationProcess
Abdullah
Danish
Mustafa
Rida
Sanober
Talha
INPUTS
Raw Materials:
Books
Company Website
Research Papers
Group Study
OUTPUT
Finished Good:
Presentation on
Inventory
Management of Dell
(Personal Computers)
PCs

3. INTRODUCTION & TIMELINE
BY
RIDA SHAKEEL

4. One of the world's leading sellers of personal computers (PCs)
Globally 2nd in computer hardware design, manufacturing and
distribution with a market share of around 16%. (HP is 1st with 19%)
The company is well known for its innovations in supply chain
Management and e-commerce, Ventured in areas of storage products,
workstation systems, online technical support, appliance servers,
network switches, and point-of-sale offering for retail customers.
Greater than $50 Million sales per day through the internet with yearly
revenue of $55.908 Billion with employee base of 103,000.

5. DELL’sTIMELINE Founded by
Michael Dell • 1984
Name Changes
From PC to DELL • 1988
1st Laptop
Computer 316LT • 1989
Entry in Fortune
500 by Youngest
CEO
• 1992
DELL.com
Launches
$1 Million/day
Record Sales
• 1996
No. 1
Worldwide
• 2001
No. 1 Fortune 500 • 2005
Streak 5’’ Tablet • 2010
Half Dozen
Acquisitions • 2013
DELL-EMC
Historical
Integration
• 2016
DELL Inc. is an American Multinational Computer Technology Company.
Lets Go Through the 32 Years of its Journey.

6. DELL’S Product Range before
Acquisitions
DESKTOPS
NOTEBOOKS
PRINTERS
SCANNERS
SMARTPHONES
PENDRIVERS
NETBOOKS
TABLETS
PDA’s

7. PRODUCTS & SUPPLIERS
BY
SANOBER SHAHBAAZ

8. Dell’s Product Range after
Acquisitions
Dell was a pure hardware vendor for much of its existence, but with the acquisition in
2009 of Perot Systems, Dell entered the market for IT services.
The company has since made additional acquisitions in storage and networking
systems, with the aim of expanding their portfolio from offering computers only to
delivering complete solutions for enterprise customers.
MP3 PLAYERSSERVERS
PRINTERS PERIPHERALS
STORAGE DEVICES NETWORK SWITCHES
SOFTWARESCAMERAS

9. SOFTWARES:
SALES FORCE
SYMANTEC
VMWARE
GROUPON
INSPIRION
SCALE MATRIX
CARINGO
ATOM
DYNAMIC OPS
QUALCOMM
TELECOMMUNICATIONS:
VIRGIN MOBILE
SKYPE
TABOR
CENTURY LINK
D-LINK
NETGEAR
MICROTEL
TISCALI
SIGHT SPEED
XPS
MANUFACTURING
SAMSUNG
BROADCOM
FONALITY
CISCO
WYSE
SYNAPTICS
PHILIPS
INTEL
LG
MARVELL
MOTOROLA
NUTANIX
NEXPERIA
MACRUMORS
LVDS
LEXMARK
INTERGRAPH
ATI
NVIDIA
LEXMARK
LSI LOGIC
INFINITI
JBL
DURACELL
SNAPDRAGON
KODAK
DELL’s SUPPLIER’s:
Dell have a wide range of
suppliers:
Software Providers – 117
Finance - 13
Components Providers – 109
Recycling – 6
Telecommunication - 16

11. SUPPLYCHAIN DRIVERS
BY
DANISH ALI

13. PRODUCTION
 Dell is able to convert customer orders to
final products efficiently since assembly
plants receive orders in just a few
minutes.
 3,000 Units/hour
 1 computer in every .83 seconds
 Delivers the computer to the consumer
within 48 hours (Locally) after the receipt
of Order.

14. INVENTORY
The inventory of assembled
computers of Dell was always
significantly lower than its
competitors. The benefits of low
inventory includes;
 low maintenance cost
 low risk of value diminishing
 Dell has a very high turnover in its
warehouse, also because of just-in-time
inventory.

15. LOCATION
 Dell outsources all its component
manufacturing and sub-assemblies of
the entire production chain for PCs.
 A network of suppliers and contract
manufacturers support each production
facility of Dell.
 Most sourcing is global, which means
that Dell sources major components for
all locations from their headquarters.

16. TRANSPORTATION
 3PL - Delivery link
 Dell’s highly regarded supply chain
strategy has been to use costly air
shipments to enable deliveries of
customized computers within days of
customer orders.
 This strategy,
eliminated the intermediate distributers,
lowers the product price and
made Dell more competitive.
And more importantly, it simplified the
supply chain and made it easier to control.

17. INFORMATION
Dell has a network or computerised
scheduling system that collates or
Collaborates all orders made by
consumers classified into;
 Specifications,
 Location,
 Payment, and
 Delivery period
 As well as the orders made with the
suppliers
Information was easier to store, move,
discard and was less expensive to have
than inventory.

18. INVENTORY MANAGEMENT
BY
AMEER ABDULLAH

19. Inventory Management Strategy
Zero Inventory
The company realized that its products
depreciate in time and keeping them in
warehouses will cause them
tremendous loses.
In order to avoid this, the company
established a revolutionary strategy
which targets very minimal inventory.

20. Inventory Management Philosophy
“Build-to-Order”
This philosophy aligns Dell’s business units and people.
At Dell their Philosophy of exchanging information
meant that instead of keeping
inventory In-hand at Dell,
or on-hand in a warehouse,
or on-hand at a retail outlet,
Dell kept information about customer orders,
needs and forecasts.

21. Forecasting predicted what orders would come in,
alerted suppliers of anticipated needed parts,
and staffed up to meet demands.
This gave Dell an ADVANTAGE in the marketplace for
several reasons as:
Information was easier to store than inventory
Information was easier to move than inventory
Information was easier to discard than inventory
Information was less expensive to have than inventory

23. JIT INVENTORY SYSTEM
BY
MUSTAFA

24. What Does JIT Inventory System Means
• The Minimum Inventory necessary
to keep a PERFECT System Running.
• With this kind of an Inventory, the
EXACT amount of goods arrive at
the moment they are needed, Not a
Minute before or after.
• Under this Method, Goods are
manufactured or Purchased Just in
Time for Sale.

25. Why to Use JIT Inventory System
• Because computers depreciate
at a very high rate. Sitting in
inventory a computer loses a
TON of Value.
• The Longer you keep it the
faster it Deteriorates –
because computer component
depreciate quickly.
• It’s Financial imperative to cut
down the inventory.

26. Advantages of JIT Inventory System
• Defect rates are reduced,
resulting in less waste and
greater customer satisfaction.
• Areas previously used to store
Inventories can be used for
other productive uses.
• Lead time is reduced resulting
in greater potential output and
quicker response to customers.
• Funds that were tied up in
Inventories can be used else
where.

27. DELL Pioneered a New way of making
Computers• Dell reengineered its supply
chain; so that it could produce
computers with the exact
features that customers
ordered,
• Shipped them in 5 Days of taking
the order and ultimately invest
almost no money in Inventory.
• This Means at any given time,
Dell would have no products
wasting in Inventory.

28. • Direct Selling by eliminating
Middlemen and Essentially
products would be produced
as they are demanded and to
the customers specifications.
Build to Order Strategy.
Thereby Dell Enabled
customers to build almost
completely custom made
computers. This increased
customers satisfaction and
Loyalty.
Dell Pioneered a New way of Selling
Computers

29. CONCLUSION
BY
TALHA YOUNUS

32. Dell’s Strategies
NO MIDDLEMEN
MASS CUSTOMIZATION
JUST IN TIME
CHOICE FROM A
VARIETY OF PRODUCTS
BUILD TO ORDER
PRICE CUTDOWN
FROM IBM
INFORMATION
TRANPARENCY WITH
CUSTOMERS &
SUPPLIERS
ZERO INVENTORY
RESPONSIVE
EFFICIENT

33. Conclusion
Previously Recently
55 Days of Inventory cycle Under 1 Day of Inventory cycle
Blocking $154 Million – 10 weeks of inv Generating 15M/Day – less than 1 wk
Different Warehouses No Warehouses
Make to Stock Make to Order
Lost of Profit due to Cancelled Orders Reduced Cancelled orders by
collaborative approach with suppliers
Increased Shipping cost for not having a
component when needed
Just in Time Inventory methodology was
applied to cover such components
Several Costs i.e. Substitution for Air
Freight in case of delay
Lesser Costs as inventory managed by
suppliers
Push Strategy Pull Strategy
Inventory Turnover Rate – 5.16 Inventory Turnover Rate - 63.50

34. Dell
Manages Profitability
Not Inventory!!
THANK YOU!!