rev of supply chain mgt dell 2

Efficiency of Supply Chain Flexibility

By

[Author’s Name]

[Faculty Name]

[Department or School Name]

[Month Year]

Supply Chain Efficiency ii

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their

support and guidance without which this research would not have been possible.

Supply Chain Efficiency iii

DECLARATION

I, [type your full first names and surname here], declare that the contents of this

dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not

previously been submitted for academic examination towards any qualification. Furthermore, it

represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

Supply Chain Efficiency iv

ABSTRACT

The study has focused on the supply chain flexibility in case of Dell. The Dell is one of

the most competitive companies engaged in the business operation of the personal computers.

The company has developed the direct build to order model for the sales that has been followed

for 20 years now. The efficient system of the supply chain and the direct order system have given

competitive advantage to the company. The customers can place their orders directly to the

company through the websites and the phone. The supply chain management in Dell is

considered to be very different as compare to other corporations. As the customers are very

clever and smart in today’s world, the company has introduced several products in the past in

order to attract the customers. The reason behind introducing such changes in the products is to

attract the customers so that the productivity can be enhanced and high levels of profits can be

generated. The supply chain needs to be represented in the way that there are more options

available to the firms. The flexibility of the supply chain can be assessed by observing the supply

chain process of the company. The company has implemented effective supply chain process that

has enhanced the process of the inventory. As the flexibility of the supply chain implies that the

company should be able to meet the challenges of the demand and supply that occurs in the

market every now and then. The fluctuation in the supply and demand must be met by the

company if it has effective supply chain flexibility

Supply Chain Efficiency v

TABLE OF CONTENTS

ACKNOWLEDGEMENT...........................................................................................................................................II
DECLARATION........................................................................................................................................................III
ABSTRACT................................................................................................................................................................IV
CHAPTER 1: INTRODUCTION................................................................................................................................1
Background of the Research Study..........................................................................................1
Aims and Objectives of the research study..............................................................................1
Significance of the Research Study......................................................................................... 2
Rationale of the Research Study..............................................................................................3
Research Questions..................................................................................................................3
Structure of the thesis...............................................................................................................4
Chapter I: Introduction.....................................................................................................4
Chapter II: Literature Review.......................................................................................... 4
Chapter III: Methodology................................................................................................ 4
Chapter IV: Discussion and Findings.............................................................................. 5
Chapter V: Conclusion.....................................................................................................5
CHAPTER 2: LITERATURE REVIEW....................................................................................................................6
Logistics Management.............................................................................................................6
Supply Chain Management (SCM)..........................................................................................6
Evolution of Supply Chain Management.................................................................................8
Strategic Objective of the Supply Chain................................................................................10
Flexibility in Supply Chain ...................................................................................................10
Overview of Dell....................................................................................................................12
Current Position of Dell.........................................................................................................14
Supply Chain Management in Dell........................................................................................15
Challenges faced by the Supply Chain of Dell .....................................................................19
Assessment of Supply Chain flexibility in Dell.....................................................................21
CHAPTER 3: METHODOLOGY.............................................................................................................................22
Introduction............................................................................................................................22
Research Approach................................................................................................................ 22
Research Design.....................................................................................................................23
The Research Process............................................................................................................ 24
Rationale for a Quantitative Research................................................................................... 24
Rationale for a Qualitative Research..................................................................................... 25
Search for and compilation of empirical information............................................................25
Secondary Data...................................................................................................................... 25
Primary Data.......................................................................................................................... 26
Choice of Topic, Company and Potential Market................................................................. 26
Data Analysis Methods..........................................................................................................27
Literature Review...................................................................................................................27
Analysis, Conclusion and Recommendation......................................................................... 28
Scope of the Research............................................................................................................29
Ethical Measures ...................................................................................................................29

Supply Chain Efficiency vi

Underlying assumption.......................................................................................................... 31
Possible alternative to your proposed methods......................................................................31
Any difficulties and uncertainties.......................................................................................... 31
Explanation of the rationale for your proposed methods.......................................................32
Informed Consent...................................................................................................................32
Confidentiality....................................................................................................................... 32
CHAPTER 4: FINDINGS AND ANALYSIS........................................................................................................... 34
Findings of Literature Review ..............................................................................................34
Supply Chain Management............................................................................................34
Pillars of the Flexible Supply Chain.............................................................................. 36
Strategies of Dell............................................................................................................37
Supply Chain Management at Dell................................................................................37
Flexibility of Supply Chain in Dell................................................................................38
Findings of the Primary Research..........................................................................................38
Framework of the Supply Chain Flexibility................................................................. 39
Effect of Supply chain flexibility on Company’s Performance.....................................39
Recommendations..........................................................................................................40
Contributions..................................................................................................................41
CHAPTER 5: CONCLUSION...................................................................................................................................42
REFERENCES............................................................................................................................................................43
APPENDIX..................................................................................................................................................................50
Interview Questionnaire.........................................................................................................50
Diagrams................................................................................................................................51
.......................................................................................................................................................................................51

Supply Chain Efficiency 1

CHAPTER 1: INTRODUCTION

Background of the Research Study

The research study will focus on the logistics management and the supply flexibility in

the companies operating in the potential markets. The logistics is an imperative function of the

supply chain management. If the strategies of the supply chain are flexible, it can enhance the

performance of the company by improving its logistics management. The efficiency of the

supply flexibility sources will be thoroughly discussed in the research study that will provide the

basis for the efficient supply flexibility.

The companies that have adopted the strategy of the supply chain flexibility in their

supply chain process. The companies have seen clear changes in their logistics management that

has ultimately improved their overall performance in the market. The flexibility of the supply

chain management refers to the capability of the company to alter and react to the vagueness of

the environmental factors.

It has been observed that the flexibility of the supply chain is considered to be a very

important factor in creating a sustainable competitive edge within the potential markets.

Moreover, other than the supply chain management operations of the organization, the

companies are also emphasizing the capability of the reactive sourcing so that it can create its

value in the marketplace.

Aims and Objectives of the research study

The aims and objectives of the research study are


1. To analyze the logistics management and supply flexibility that affects the overall

performance of the company.

2. To assess the efficiency of the supply flexibility sources in order to evaluate its

impact on the logistics management.

3. To evaluate the process of supply chain management that plays important role in

the performance of the company.

4. To analyze the concept of the supply flexibility that need the companies to be

responsive towards the customer demands

5. To analyze the factors that

Significance of the Research Study

The research study highlights the importance of the supply flexibility in the logistics

management. The logistics management and the supply flexibility are the two important factors

for assessing the performance of the company. The improvements in the supply chain

management can improve the process of the logistics that is related with the flow of material

from the place of manufacturing to the customers.

The logistics management plays an important role in enhancing the company

performance. As the customers demand for the fast distribution and variety of the products, it

needs the company to improve its logistics management through the effective supply flexibility.

However, the case study will specifically focus on the logistics management and the supply

flexibility in case of Dell.


Rationale of the Research Study

The research study is based on the logistics management and the supply flexibility that

helps in improving the performance of the company. The supply flexibility implies that the

companies react positively to the market demands and towards the uncertainty of the

environmental factors. It is also seen as the response of the company towards the market

competition and the ways of managing that competition. There is also associated competitive

advantage with the supply chain flexibility. The efficiency of the supply chain flexibility implies

that the products are enhanced in terms of their quality and the timely distribution is enhanced.

The supply chain flexibility makes the products more attractive for the customers and

increases the sales by adding value in the eyes of customers. The logistics is considered to be an

important part of the supply chain management. The flexibility in the supply chain can largely

affect the logistics management and increase the effectiveness of the goods distribution. The

supply chain flexibility also reduces the uncertainty of the supply chain process while taking

away its risks as well.

Research Questions

1. How supply chain management can make the logistics management effective?

2. What is the role of supply chain flexibility in the logistics management?

3. How the efficiency of the supply chain flexibility has benefited the performance

of the company in case of Dell?

4. What are the steps that should be implemented for the framework of the supply

chain flexibility?


5. Does the supply chain flexibility lead the company to achieve competitive

advantage?

Structure of the thesis
Chapter I: Introduction

The research subject will be introduced in the start, consisting of the aims and objectives

of the research as well as its logic and reasons. The reasons about why we selected to undertake

the mixture of quantitative and qualitative methodologies of research are included in the other

segment of the research. Additionally detailed research questions will be mentioned, to give an

analysis of argumentation, and the main themes will be introduced that the research desires to

analyze.

Chapter II: Literature Review

The Literature review is indicative of the preliminary research on the research topic. The

research has gathered valuable information about the strategic management from various

academic sources. The literature review covers different studies that have conducted in the past

regarding the effectiveness of the supply flexibility. This information is based on the key

strategies used by the corporations to be successful in their respective industry. The strategic

management that has been implemented in Dell is also discussed in detail in order to analyze the

successful strategies of the corporation.

Chapter III: Methodology


The mixture of quantitative and qualitative methodologies of research is undertaken for

the sake of completion of this program. There have been included both types of methodologies

that are the primary and the secondary methodology. The qualitative methodology has been

adopted for the secondary data that will be used in the literature review. The primary data is used

for conducting the interviews. The response of the interviewee has been used in the discussion

and findings section.

Chapter IV: Discussion and Findings

Outcomes from the interpretation of the information or data gathered from secondary

sources are included in this segment. The research conclusions will be based on the future

prediction of the corporations in terms of their financial performance. The financial performance

will be predicted by making use of the financial ratios of the corporations. The data of the

companies will be analyzed for two types of companies that are the bankrupt firms and the non

bankrupt firms.

Chapter V: Conclusion

The conclusion of research covers the following things:

• Consists of the general overview and major discoveries of the research.

• Assess the procedure of research.

• Determine the conditions of the study.

• Determine segments for more research.


CHAPTER 2: LITERATURE REVIEW

There have been conducted very few studies on the impact of efficient supply chain

flexibility in the past. The past studies show that there is significant impact of the flexible supply

chain on the logistics management and the supply chain management. The research study

includes different studies performed in the past and has taken into account the information that is

imperative to the study (Baier & Hartmann, 2008, Pp. 36).

Logistics Management

The logistics management is considered to be the domination of the functions of the

supply chain process. The management of logistics contains the shipping of products inside and

outside, warehousing, handling of materials, management of fleet, fulfillment of orders, network

design of logistics, management of inventory and the planning of supply and demand. It also

includes managing the service provision of the third party logistics (Bailey & Farmer, 2005, Pp.

132).

By the adoption of the efficient and flexible supply chain strategy, firms can maintain

effective logistics management system that will facilitate the company with greater profits

(Beamon, 1999, Pp. 275).

Supply Chain Management (SCM)

The management of the Supply Chain Management (SCM) is emerging as the

combination of technology and best business practices worldwide. Companies have improved

their internal operations are now working to achieve greater savings and benefits by improving

processes and information exchanges that occur between business partners (Davis, 2003, 35).


A successful supply chain management implies timely delivery to the final customers, the

right product at the right place at the right time, the required price and the lowest possible cost.

Best SCM programs share common features, first of all, have an obsessive fixation on customer

demand (Bagozzi & Phillips, 2002, Pp. 421).

Instead of forcing the products to be sold in the market quickly, may or may not meet the

demands of customers or be complete financial failure. This type of initiative is plotted

development objectives and producing products that are demanded by customers minimizing the

flow of raw materials, finished products, packaging materials, money and information at each

point of the product cycle (Copacino, 2004, 69).

These objectives have been sought by industrial companies for several decades and have

experienced by the management. The companies have also successfully implemented modern

techniques such as Just In Time (JIT), Quick Response (QR), Efficient Customer Response

(ECR)-Managed Inventory Provider (VMI) and many more. These are the tools that help build a

structure of robust supply chain. From the cost point of view, is where the company performs the

best benefits, a recent study showed that the total costs of the supply chain become 75% of

operating budget expenditures (Hammer, 2001, 82).

MIT recently did a study which showed that companies that have successfully

implemented these programs achieve benefits such as we can tell inventory reductions of up to

50%, 40% increase in on-time delivery, 27% reduction in cycle product accumulated, doubling

inventory turns, reduced 9 times the missing, and 17% increase in sales (Chopra & Mieghem,

2000, Pp. 32).


Another study by a consulting firm found that these companies typically achieve

excellent results in reducing operating costs, improve asset productivity and be more efficient in

responding to changing market demands (Choi & Dooley, 2009, Pp. 25).

In the last decade, companies have implemented a range of programs designed to reduce

the cost of operating, doing business concepts such as downsizing, reengineering, outsourcing,

etc. It helped the company to restore the competitiveness of entire industry (Hogue, 2001, 21).

During this period, the focus was to increase profitability and cost-cutting rather than

increasing sales. This cannot be brought up to certain limits in today's businesses as operations

are looking thinner and healthier to grow, and are repositioning the concept of supply chain as a

lever for growth (Christopher, 2000, Pp. 37).

The question then arises of why not or how. Smart managers recognize two important

things. First, think about the supply chain as a whole, all the links involved in managing the flow

of goods, services, information and funds from the vendor of the client to client. Second,

continually seek tangible results, with a focus on sales growth, asset utilization and cost

reduction (Brewer & Speh, 2000, p.75).

Evolution of Supply Chain Management

In the primitive time that is around 1950’s and 1960’s, the process of the supply chain

was not efficient in terms of technology. The main emphasis of the previous supply chain

process was on minimization of the unit cost in production with having little process flexibility

or product flexibility. The collaboration of the supply chain process of different corporations was

used to be unacceptable. The previous nature of the supply chain and the increased levels of

competition made the manufacturers to shift their focus to such factors that can help them in


achieving higher levels of productivity. Since then, the manufacturing firms and the

corporations felt the need to put more emphasis on the flexibility along with the high quality of

products and low cost. This changed the perspective of the manufacturing firms and made them

to enhance the strategic partnership. It also made the firms to change their perspective from the

technology oriented supply chain to the integrated supply chain which made the commitment and

trust to be important for the firms.

The new version of the supply chain was very different from the previous one and

included new concepts. These include improvement in the efficiency of the supply chain by

making use of the strengths of the suppliers. The manufacturers also made use of the technology

that was in the support of the latest product development. The new process of the supply chain

also made the firms to understand their own business activities that affect the complete process

of supply chain within corporations. The new process of the supply chain also made the firms to

coordinate the course of information and materials between the manufacturers, suppliers and the

customers eventually (Lee, 2004, Pp. 102).

At present, the efficiency of the supply chain process is dependent on the incorporation of

all the activities that are present in the chain of the supply chain. The efficiency in the

competitive advantage can be attained through the corporations by achieving higher levels of

incorporation among the customers and the suppliers. Thus, the process of the supply chain is

associated with the management and the integration of entire business process included in the

supply chain and these factors are considered to be the most important in the process of supply

chain. The hierarchy of the supply chain includes from the design of the products till their

delivery to the suppliers, providers and the strategic partners (Lummus & Duclos, 2003, Pp. 1).


Strategic Objective of the Supply Chain

Increase participants' ability to make decisions, formulate plans and outline the

implementation of a series of actions is the main objective of the supply chain.

1. The significant improvement in the productivity of the logistics system that is

operational.

2. To increase service levels to customers.

3. In the implementation of actions that lead to better management of operations and

development of lasting relationships of great benefit to suppliers and key

customers of the supply chain.

Flexibility in Supply Chain

The flexibility in the process of the supply chain is considered to be the key indicator of

competitiveness within the marketplace where there is an extreme competition among the major

players. The competition has been intensified with the development of new strategies that have

provided the manufacturers and the producers an opportunity to enhance the quality of their

products and services. The effective assessment of the supply chain flexibility is the way for

improving the performance of the business and the process of the supply chain. Therefore, it is

imperative for the companies to assess the flexibility of their supply chain accurately and

thoroughly (Krause & Ellram, 2001, Pp. 21).

The research study provides significant and widespread analysis of flexibility in the

supply chain and has identified five factors of the flexible supply chain. These five factors are

the logistics flexibility, strong network, supply and market flexibility, re arrangement flexibility

and the operations flexibility. It has been observed that the main elements for winning the market


are to minimize the accumulated cost of logistics and provide best services to the customers in

order to enhance the profits within the supply chain corporations (Lau, 2000, Pp. 11).

The concept of the flexible supply chain has emerged with the flexibility in its process of

the supply chain that involves different functions. There have been given different definitions of

the flexible supply chain process. Raghavan and Viswanadham (2001) have described the

concept of flexible supply chain as the capability of the business operation to efficiently handle

or response to the alterations in the cost, performance, quality and time by charging some

penalties. There are different aspects that can be related with the flexible supply chains. These

are relationship between the buyer and supplier, production, the role of marketing and the driven

demand (Raghawan & Vishwanadhan, 2001, Pp. 367).

The research studies have interpreted the flexible supply chains as the possibility of the

supply chain process to react to the short run alterations in the supply and demand conditions

occurred due to the external disturbances along with the modifications in the environmental

conditions of the supply chain (Claycomb & Frankwick, 2004, Pp. 18).

The companies are emphasizing the timely delivery of the products in order to ensure the

effective supply chain process. The companies are making improvements in the delivery of the

products by using the flexible and extensive network of the suppliers (González, 2007, Pp. 901).

The timely delivery through flexible and extensive network is given special attention so

that the companies can deliver the products on the wider range. Thus, the supply chain flexibility

has become a decisive and an imperative concern while managing the complex and uncertain

situations related to the varying requirements of the customers. The present market demand the

suppliers to adopt the strategic upstream of the supply chain (Conner & Prahalad, 2001, Pp. 477).


The outsourcing of different functions and the extensive use of the information

technology has motivated the companies to enhance the larger synergy among the functions of

the supply chain (Duclos & Vokurka, 2003, Pp. 446).

The factors like the concerted efforts by the organizations and the cross functional efforts

are devoted to the rising flexibility that is needed for the suddenly altering requirements of the

market. The customers want the markets to change in terms of the speed and variety so that they

can avail quality products in lesser period of time (Fine, 2000, Pp. 213).

The alignment of the whole supply chain process is considered to the most important

aspects for maintaining flexibility in the supply chain process. The alignment of all the steps in

the process of the supply chain is one of the pre requisites as it helps the corporation in dealing

with the uncertainties. The changes in the supply chain can only be managed if there is a

common contract among all the strategic partners and that the change in the strategy is important

in order to deal with the problem.

The flexibility in the supply chain can be defined as the possibility to counter the demand

and supply changes in the short run that takes place with respect to the external distraction along

with the alteration in the structural and strategic shifts within the supply chain environment.

Thus, flexibility requires the supply chain process to have adaptability and the agility (Lavie,

2006, Pp. 638).

Overview of Dell

The creation of Dell Inc emerged from the hands of Michael Dell who founded the

company in 1984 that now 25 years later has sold over 20 million computers a year and that its

actions since June 1988 when it went public until now have tripled, despite the massive drop in


price during the crisis. The company was basically founded after observing the growing need for

models of personal computers and business insight to just software developers from Microsoft.

The quality in the case of Dell does not refer directly to the product, but the rapid and reliable

place for all needs that require their customers, from technical assistance, through the

commercial support and services without forgetting aftermarket.

Certainly within Dell as a company focused on the trade that interests us most is the

quality / speed of service to the demand of customer orders; its systems, based on own

development and the quality of the service itself, have allowed eliminate jobs in its factories in

the repair and servicing of computers, which have achieved a very important natural evolution in

terms of speed of service orders.

It is therefore the production quality that makes Dell to occupy important position in the

I.T market. The company has not only been able to improve delivery and quality without having

to review their products, but because it has been able to count other human resources or

investments in other areas as well. These strategies are considered to be the most important

strategy for the development of its business. The strategy for the area of global logistics is an

effective which coordinates the approximately 100 factories in distribution of equipment to have

around the world.

Dell became the first company in the computer manufacturing sector to deploy direct

sales. Originally bids from consumers by telephone, and in 1996, Dell the first among computer

manufacturers offered buyers to order computers over the Internet. By adopting this strategy, the

company quickly proved the effectiveness of its strategy as the company earned $ 1 million on

the daily sales of computers in three years by the end of 1996. Internet sales reached $ 35 million

a day, and in 2000, sales reached already $ 50 million a day. Rejection of intermediates, standing


between the producer and consumer, has been reflected in the internal structure of the company.

Dell belongs to the so-called flat-companies with a minimum number of levels of internal

hierarchy.

Current Position of Dell

Currently, Dell is the biggest seller of personal computers in the world. In 2003, the

Company owned 16.7% of the global PC market, but now its share rose to 18.3%. For fiscal year

2004, the net revenue of the company stood at $ 41.44 billion and market capitalization at the

end of September 2004 reached $ 88.77 billion. Even 20 years after its establishment, Dell

continues to be fast, flexible and entrepreneurial company. This is a typical flat organization that

deals in the manufacturing of the new flat computers introduced through the new technology.

From manufacturing facilities to corporate communications, decisions are made quickly without

excessive load of the hierarchy. The internal communications are effective, so the problem does

not require the attention of management and gets solved independently.

Dell uses the extraneous firm to conduct a cultural audit, designed to identify strengths

and weaknesses of the company. This audit has demonstrated how dell has a strong desire to get

victory and the highest efficiency and the elimination of the weakness in the organization of

career employees and generating the balance of work-life. The rapid growth of Dell and a

constant focus on increasing market share have created a culture in which the numbers of

(financial) results are often achieved at the expense of teamwork and customer satisfaction. The

survey showed: some team leaders are constantly rewarded and progressed, despite the fact that

they were raped a sense of their staff. Due to the adoption of these negative aspects of culture,

Dell remained in the shadows until the financial figures and quotes of the company promised


high returns. For eliminating the company introduced an assessment method of 360 degrees and

launched a quarterly voluntary and anonymous online survey named as Tell Dell. Poll suggested

about the thinking of the ordinary worker, its executives, as well as identifies the problems they

see.

Evaluation of each manager depends in particular from those improvements and that the

company found out its lacking activities and improved them. Through this survey, the company

came out with the solutions to deal with its issues. As the problem of the employee was solved,

they started giving their 100% and their performance depicts in the financial performance of the

business. In April 2001, Dell completed plans for sales and profits at the end of the quarter, and

its performance in each subsequent quarter to meet or exceed analysts' estimates. In the third

quarter of 2004, revenue rose to 22% as a result of record sales growth. Employees believe that

management actively supports their efforts to achieve a better balance between work and life.

They also clearly see the connection between their work and their corporate objectives of

the company. The proportion of people who do not move to another job, having received a

similar proposal for wage increased almost 57 % that’s the reason employees feel reluctant to

switch their jobs and focus more and more on their efficiency of their work. It resulted in the

strong financial position of the company and high perks and privileges of the employees

(Macbeth & Ferguson, 1994, Pp.165).

Supply Chain Management in Dell

The supply chain management in Dell is considered to be very different as compare to

other corporations. As the customers are very clever and smart in today’s world, the company

has introduced several products in the past in order to attract the customers. The reason behind


introducing such changes in the products is to attract the customers so that the productivity can

be enhanced and high levels of profits can be generated. The supply chain needs to be

represented in the way that there are more options available to the firms.

Figure 1: Supply Chain Process at Dell

The Dell is one of the most competitive companies engaged in the business operation of

the personal computers. The company has developed the direct build to order model for the sales

that has been followed for 20 years now. The efficient system of the supply chain and the direct

order system have given competitive advantage to the company. The customers can place their

orders directly to the company through the websites and the phone (Christopher & Peck, 2004,

Pp. 367).


Figure 2: Supply Chain Process in Dell

It is evident that the constantly altering expertise influences the Dell’s success. The major

method Dell uses is alignment in order to accomplish and maintain their comparable advantage.

This method implies the exclusive and direct to customer business pattern. The Internet is Dell’s

key achievement constituent which results in smaller costs to customers than other retailers. The

reason behind this is because customers notify Dell precisely what they want and Dell conceives

goods for the consumer without experiencing wasteful assets in production. (Breen, 2004, Pp.

143)

The supply chain of Dell works in the following manner. After customer places an

alignment, either via phone or through the Internet, Dell processes the alignment, which takes

two to three days, afterwards which it sends the alignment to one of its manufacturing plants in

Austin, Texas. These plants can construct, ascertain, and pack the merchandise in about eight

hours. The general direction for the production process is first in, first out and Dell normally

designs to boat all instructions no later than five days after receipt (Mentzer 2001)

Since numerous of Dell’s suppliers are located in Southeast Asia, Dell has considerably

less time to respond to customers than it takes to transport essentials from its suppliers to its


assembly plants. To reimburse for this, Dell requires its suppliers to hold inventory on hand in

the Austin vegetation, mentioned to as revolvers (for “revolving” inventory). Revolvers or

Supplier logistics hubs (SLHs) are little warehouses located inside a couple of miles of Dell’s

assembly plants. Each pistol is shared by some suppliers (Breen 2004).

Figure 3: Dell’s built to order / Direct Sales Value Chain

It is one of the strategies of the company to stay ahead of competitors who take up a

direct-sales approach, and it should be proficient to decrease supplier inventory to gain important

leverage. Although arguably supply-chain expenses encompass all expenses acquired from raw

parts to final assembly Dell concentrates on Dell-specific inventory (Ketchen & Hult, 2007, Pp.

573).

These are the parts that are planned to Dell’s specifications or stored in Dell particular

addresses, such as its revolvers and assembly plants. Because assembly plants contain

inventories for only a couple of hours, Dell’s primary goal, in this task, was the inventory in

revolvers. Dell retains inventory only for six to eight hours it travels across the assembly line

while it takes 18 hours for the accomplished CPU to be carried out by the truck to the integrated

centre in Reno, Nevada. At the integrated centre, the unit is bundle with the supervision of the

workers and transported to the customers.


Dell’s supply chain management success can be summed up in one idea. The supply

chain management shortens the cycle between the suppliers, the manufacturers and the end

customers. The company has allowed them to almost feel the effect of the e-commerce according

to Michael Chong, e-business Technology Manager of Dell Computer Corporation. Supply chain

of links administration is productive and productive action of components from suppliers,

through a company and into goods, which is finally obtained by the consumers (Ittner & Larcker,

2001, Pp. 253).

Challenges faced by the Supply Chain of Dell

In 2006, although the company faced some problems many customers deplored about

long contain ups in supplies. Recall of Sony electric driven electric battery cells in its laptops

expressed undesirable newspapers hype to the company. Increasing discontent of customers

commanded to a slowdown in sales. Consequently, Dell lost its market leadership to Hewlett-

Packard Co (HP). Industry analysts sensed that, with Dell’s competitors more over advancing

their supply chains and matching Dell’s direct pattern, the business had been mislaying its

comparable edge.

Dell will have to bear additional charges with its foray into retail distribution thereby

minimizing its cost advantage. Besides, earnings margins of Dell will fall farther since it will

have to offer inducements to contend with HP in retail stores. Though Dell has spruced up its

merchandise design and variety, Apple is apparently far ahead of it. Many experts seem that such

new initiatives will only distract Dell from its supply string of links operations. (Breen 2004)

Another advantage Dell gets by directly dealing with the customer is that it is able to get

the customer’s requirements regarding software to be loaded. Dell loads the organised software


in its vegetation itself before dispatching it. By eliminating the requirement of a PC support

technician to load software, the customers gain both in time and cost. They can use the personal

computer the instant it arrives. (Larson 2004)

Today, Dell does not assemble a computer system until it has a clientele alignment in

hand. Thead covering, in turn, means ultra-low inventory levels (one tenth that of many

competitors), as well as a favourable cash-conversion cycle (minus 20 days in a latest quarter).

But it is important to know whether customers are actually eager to wait for the delivery or not.

The answer is absolutely yes. Given the speed of Dell’s manufacturing processes, the wait is

sometimes more than a couple of days. However, customers are guaranteed that they will be

getting a system that encounters their exact specifications.

Dell has realized, although, that sustaining its constructing effectiveness and

corresponding to the customer satisfaction will become more perplexing as the company extends

to augment its global business. The reason is that Dell has the streamlined manufacturing

processes and its inevitable reduced inventory levels are increasingly dependent on the

company’s ability to accurately forecast customer demand. It is also dependent on the schedule

of the company and its manufacturing processes accordingly. In other phrases, as the Dell

increases its market operations further, so does the complexity of its constructing process. The

company will require having the right components on-hand at any granted instant to persuade

immediate clientele requirements (Larson 2004)

The company faced serious decline in its sales in the year 2006. The major reason for this

was delay in the delivery of the products that reflects the inefficient use of the supply chain

management. The company spent additional cost and improved its supply chain management in


order to enhance the sales. The company has made its supply chain process flexible by

responding to the environmental changes and risks (Conner & Prahalad, 2001, Pp. 477).

Assessment of Supply Chain flexibility in Dell

The flexibility of the supply chain can be assessed by observing the supply chain process

of the company. The company has implemented effective supply chain process that has enhanced

the process of the inventory. As the flexibility of the supply chain implies that the company

should be able to meet the challenges of the demand and supply that occurs in the market every

now and then. The fluctuation in the supply and demand must be met by the company if it has

effective supply chain flexibility (Inkpen & Tsang, 2005, Pp. 146).


CHAPTER 3: METHODOLOGY

Introduction

The research study on the efficiency of flexible supply chain will adopt two kinds of

methods. These include secondary as well as the primary methods in order to minimize

weaknesses and reach a deeper understanding of the area. The secondary method will involve the

collection of the data related to the supply chain management, logistics management and the

flexible supply chain management. However, the primary method will include the interviews of

the supply chain managers of different companies.

Research Approach

The evaluation of constructionist and optimistic philosophy is compulsory to have an

exact approach for the current research since the chosen topic had to be investigated for the

utilization and implication of strategic management theories on the business operations of the

selected company. As expected, Positivism is the goal due to which the research remains

autonomous of the area of research having the main centre of attention on the solution of the

difficulties of the customers with the help of sizeable data collection. Alternatively, the

attachment of the researchers in the subject area is very much needed since the positive approach

is prejudiced in nature. The previous conditions, situation and necessary issues had to be clearly

understood; for which the collection of qualitative data is necessary.

The interpretation related to positivist approach is deductive logic, which generally

begins with wide arguments and ends at a particular case in the end. With the adoption of this

logic the study will be limited from a large representation to a specific suggestion, with the help

of primary data analysis it can further be curtailed to formation and testing of hypothesis. The


recognition or elimination of the research proposition will be decided from the consequences of

this hypothesis testing. The deductive research approach has paved way for the establishment of

the hypotheses, which should be experienced with the assistance of primary data (Trochim,

2006).

Research Design

The method of collecting the data for assessing the efficiency of the supply chain

flexibility in Dell is based on the qualitative and the quantitative study. The efficiency of the

supply chain flexibility is an important aspect for ensuring effective supply chain management in

the corporation. The qualitative study has been included in the research study in order to collect

the data for the literature review. The supply chain flexibility and its effectiveness is an

important aspect for the corporations particularly for the companies that have attained higher

position in the market. By achieving efficiency in the supply chain flexibility, the process of the

supply chain management makes the company able to enhance the quality of services it is

providing to its customers. The efficiency of the supply chain flexibility is also one of the ways

of enhancing customer satisfaction.

The primary data has been collected by conducting interviews of the officials of different

corporations. The company has also conducted interview with the officials of Dell in order to

collect information regarding the supply chain flexibility of the corporation. The secondary data

has been collected through the websites and the online sources. The online sources have included

the articles, journals, books and the latest publications. The primary data that includes the

interview questions has also been collected through the officials of other companies. The primary

and secondary data will be collected for the supply chain flexibility of Dell however the data will


also be collected for the supply chain management and the supply chain flexibility in general as

well.

There is involved more subjectivity in the qualitative study as compare to the quantitative

study. The primary and secondary methods are said to be the mixed methodology. The primary

and secondary methods have facilitated the researcher to analyze the efficiency of the supply

chain flexibility through the theoretical as well as the primary data. The data for assessing the

efficiency of the supply chain flexibility is collected through the mixed methodology that

includes primary and the secondary sources.

The Research Process

Quantitative and qualitative research are the marketing research method grouped into two

type by Ghauri et al. (2006, p155)

Rationale for a Quantitative Research

This is the type of research in which the respondent is interrogated to respond by

answering planned questions and a favoured format, for instance, Yes or No. This sort of

research is manipulated to obtain a definite answer which could be presented with accurate

evaluation. The methods to conduct this kind of information collection include Personal

interview, mail or telephone interview. The quantitative research has involved the interviews of

the supply chain managers on the basis of which the results of the study have been concluded

(Cateora & Ghauri 2006, p. 155). The quantitative data that has been collected for the research

study is about the supply chain flexibility and the assessment of its efficiency.


Rationale for a Qualitative Research

Qualitative research follows a shapeless and unrestricted answer from the respondent.

“Qualitative research is also used in international market research to formulate and define a

problem more clearly and to determine relevant questions to be examined in subsequent

research”, says Ghauri et al (2006, p155). To assemble the information for Qualitative type of

research could be prepared by Interview.

Interview through mail and telephone with the help of shapeless unlock questions can be

used to assemble the information. We have found qualitative research method appropriate for our

research taking into consideration the Ghauri’s opinion, as we have found this method of doing

research unsurpassed fit for our work. The qualitative data has been collected through the online

sources that include Ebsco, Proquest, Emerald, Routlegde etc. The data that has been collected

through these online sources are ensured to provide sound knowledge about the flexibility of the

supply chain.

Search for and compilation of empirical information

Primary sources and Secondary sources are the further divided form of a type of data

depending on the foundation they can be composed. And it has been done by Ghauri and

Gronhaug (2005, p91- 106).

Secondary Data

Secondary data as a form of data that has been composed by others for a entirely unusual

or little similar to the research problem is defined by Ghauri et al (2005). Ghauri also

incorporated that some research questions can be responded only by secondary data but there are


probable risks as those data were composed for a special function and can be prejudiced (Ghauri

and Gronhaug 2005, p91). The secondary data has been collected for different sections of the

research study. The data for the literature review and the introduction of the study has been

collected through the online secondary sources. The secondary data is of great importance for

ensuring reliability in the research study. The data for the supply chain flexibility and its

effectiveness has been collected through the online secondary sources that facilitate the

researcher with reliable information in short period of time.

Primary Data

Data that has been composed by the researchers themselves to respond their own

specified research questions are called Primary Data (Ghauri and Gronhaug 2005, p91).

Significance of primary data anticipate when secondary source is not of high-quality adequate to

answer the research question said Ghauri et al (2005, 102).

After assembling all the secondary data, we have conceived that some primary

information from the company and the country side would be advantageous to gather and to hold

up the secondary data in order to attain a wanted result of the research. The interviews have been

conducted with the supply chain managers of the companies. It will give the significant results

on the basis of which the results will be obtained regarding the flexible supply chain.

Choice of Topic, Company and Potential Market

Taking into consideration the Fisher’s (2007, p 31) commendations that the researcher

should prefer a subject that benefits them and even probably stimulates them. And the preferred

subject should also emanate a little curiosity to some external audiences. We have considered


some topic concerning international marketing keeping that in mind and have also found the

selected topic about the supply chain flexibility very appealing and demanding.

We have researched the market of the supply chain flexibility and tried to authenticate

how the process of the supply chain has been followed within the certain companies. Hence, we

have planned the work keeping Dell in mind and afterward had an informal email interview with

manager supply chain. We got to be familiar with what they are concerned to know and what

type of study and plans they perceive for Dell from the first email.

Data Analysis Methods

According to Miles and Huberman (1984) there are some special tools required for the

case studies data analysis including the percentages, tables, means, charts matrices etc. simple

mathematical tools assist in data collection while the data assessment and representation is done

by using tables, graphs and charts.

There are many data collection sources. They may be secondary sources including

websites and company data, etc. this information is useful in drawing conclusion and classifying

them. There is a dependable theory need for the particular research and literature need.

Literature Review

One of the fastest growing companies of the world is the I.T sector. Communication has

become a major part of people’s life these days. With the passage of time, growth of population

and the needs of human beings have increased and technology has become an inseparable part of

mankind. As a result, this industry is pacing swiftly in modern world. This industry has already

attracted the big investors and the marketing champs, research consulting companies and the


adventurous explorers. As the time goes on and on, the investigation in this field is getting vast.

Theoretical forecasts are made for market exploration.

Multinational companies are growing widely. They tend to achieve as much as market

share and striving hard for this. There are many studies that develop some tactics how to reach to

potential markets of the world. The research study has been conducted on the I.T Company Dell

that is engaged in developing new technology in the computer industry and has provided people

with most reliable technologies. Many research studies have been conducted in these markets.

The reviews, journals, books, online publications, articles, websites, catalogues, blogs and many

other research materials are the part of this sector information literature (Ghauri & Gronhaug

2005, p91).

We have developed a paper based work in order to support the research findings. This

research was based on Journal databases, websites, Text books and other university databases.

We also have developed the databases on different university libraries including Emerald,

Business Insight, ABI/Inform, Global Information Inc (professional Research reports) and

scholarly search engines. Main theories of supply chain management and the supply chain

flexibility were also chosen and related theories were also determined in different perspectives.

The competent environment has also been concluded the chief factor in company success.

Analysis, Conclusion and Recommendation

The analysis is based on the outcome of incorporated assessment of applicable theory and

experimental information collected for that reason. All the composed information has been

followed through the lustre of hypothetical structure and has been used for responding the

difficulty statement. Since it has been suggested earlier that qualitative research method will be


conducted, which is more explorative and shapeless with great prominence on understanding

(Ghauri et al, 2005, p202). The possibility of qualitative data analysis includes data reduction,

data display; conclusion drawing said Miles and Huberman (1994). The process of selecting,

focusing, simplifying the data is Data reduction. The compacted assembly of information which

helps in the conclusion drawing is data display. In our case, we have concentrated and cut down

the data according to the theory and later displayed those data for a challenge to take judgment

and also the conclusion. The commendation is prepared based on the conclusion which also

comprises of some additional research direction.

Scope of the Research

In order to get a holistic view of achievable future industry conclusions, the possibility of

the thesis is purposely kept somewhat wide. Though, some boundaries are desired to guarantee

that research results will not be too common. In conditions of industry shareholders the input

focus throughout the thesis is detained on flexible supply chain and the corporations like Dell

that are providing enhanced and timely distribution of goods and services. Moreover the supply

chain flexibility has also been observed personally.

Ethical Measures

Many of the ethical issues are involved while conducting a research. Research ethics

demand that certain considerations, often referred to as norms, and are adhered to so as to make

the process, the findings and the recommendations credible. For any research findings work to

have a sound backing then, the norms should act as the guiding light. While reporting, data,


results, methods and procedures, and publication status should be mentioned appropriately. It

should not be fabricated, falsified, or misinterpreted.

The data that has been collected for reporting should not be from the granting agencies,

or the public. There must be Objectivity, that is one should not be biased while interpretation of

the data. Integrity should be focused. Carefulness, that is to avoid mistakes which are the reasons

for big disasters plus, there should be respect for Intellectual Property and Confidentiality.

Responsible Mentoring, Respect for colleagues, Legality are some of the ethical issues which

should be considered.

Another important aspect for ethical research is when you are conducting a survey or

when keen to know what others think, one should not coerce them for participating in research.

Another very important point is that when the data you are going to ask is prohibited or the laws

of particular company does not allow that to be dispersed in business, then you should avoid

asking it. Things which are unethical in research also includes, plagiarism, naming the person

which has not done the research, using any inappropriate technique to analyze data, for getting

more and more information spy someone, asking internal matters of the organization etc.

We cannot avoid the ethical assistances of the studies and researches in developing

principles. According to Bell and Bryman (2007) without acquiring the ethical principles in

social sciences it is useless to achieve the desirable results.

It was cautiously focused that the personal details of the interviewers should not be

included in measurement and judgement of results. Therefore the security of information was

maintained as of management responsibility. Fraud and cheating in research was strictly

prohibited. In order to increase the research credibility, it was ensured that the conclusions drawn

from previous primary sources were accurate.


Underlying assumption

It is assumed that the data sources that will be used within the studies are reliable and

have valid data and the participants are randomly selected and are not biased. There are certain

limitations to this study because it is focused on one single group that has limited amount of

sample to calculate. The study will ensure that the individual or the community, who studied the

life of the undue invasion. The welfare of the respondents would be given the highest priority,

the interests of their dignity and privacy would be ensured. Consent forms will be obtained with

guarantee of data protection.

Possible alternative to your proposed methods

An alternative method which can be used for this research is the interview survey.

Interviews from the respondents can be recorded and analysed. One advantage of using the

interview survey instead of a questionnaire survey is that participants, who cannot understand

questions in the written form, will be able to understand questions in the spoken form.

Any difficulties and uncertainties

As with any other research there are certain difficulties and uncertainties regarding this

study. The main concern is that the respondents may fabricate the answer and not provide honest

response. Time is also an issue when it comes to questionnaire surveys.


Explanation of the rationale for your proposed methods

The research method chosen for this study is questionnaire survey because they are better

than interviews as they are properly documented and valid. These questionnaires can be used for

future references as they are available in black and white.

Informed Consent

Informed consent is an important component of research and is an integral part of the

research process (Burns & Grove, 2005; Creswell, 2005; Neuman, 2005; Polit & Beck; 2006).

Researchers should educate their participants in order for them to make an informed decision

regarding their participation in the research (Burns & Grove, 2005; Creswell, 2005; Neuman,

2005; Polit & Beck; 2006). Participants must provide informed consent freely and without force

(Creswell, 2005; Neuman, 2005) and with clear comprehension of what participation entails

(Burns & Grove, 2005).

For the proposed study, the researcher will implement practical steps to ensure that all

participants are educated about the proposed study in order to make an informed decision.

Participation will be voluntary and individuals have the right to choose not to participate or to

withdraw from either phase of the proposed study at any time.

Confidentiality

Confidentiality is an important component that requires focused attention within the

research process (Burns & Grove, 2005; Creswell, 2005; Neuman, 2005). The researcher will

carefully consider confidentiality in the proposed study for both the qualitative and the

quantitative phase. The qualitative sample will include a purposeful selection of samples based


on their knowledge of the central phenomenon. The selection will ensure the confidentiality and

privacy of the participants. Only the researcher will approach potential participants.


CHAPTER 4: FINDINGS AND ANALYSIS

The supply chain management is an important process that is implemented within the

corporations in order to ensure high levels of productivity and profits. The supply chain

management is the integration of all the supply chain process that includes the flow of materials,

information and the financial data from one place to another. The flexibility in the supply chain

process is the efficiency of the supply chain process to meet the challenges of the changing

demand and supply

Findings of Literature Review

Supply Chain Management

Generally in Supply Chain Management, a distribution strategy is probably one of the

most important factors of the whole Supply Chain. This distribution strategy practically

described in perfect detail how the Supply Chain is organized and where there are potential

threats, but naturally there are also possibilities of occurring opportunities. When a company is

creating a new distribution strategy for the Supply Chain Management they will have to focus on

their customers more than anything. For example how your customers shop and buy and what

will is the most cost-effective way to create demand for your products.

The Supply Chain integration of processes share very valuable information that can really

help a company in their distributing process. For example they can show demand signals,

demand signals can show exactly how and what is demanded and how the company can supply

the customers and satisfy their needs.

Another factor in the integration of processes is forecast. Fugate & Mentzer is of the

view that forecasts can provide the company with valuable information with future predictions,


which can then be used again by the company to create a new and valuable strategy that can save

or create money for the company. Inventories and transportation of these inventories is another

very important factor that really has a lot of control in the Supply Chain (Gattorna, 2006, Pp. 42).

According to Gattorna, inventory management is another and also the last factor in this

process that describes perfectly what is the common problems in Supply Chain Management. It

is the manager’s responsibility that he controls this sort of management and knows exactly, what

the company already has in its inventory and what is needed to have a constant inventory

Extensive research has been carried out in finding better ways of managing the supply

chain and optimizing its performance. There are seven basic principles in managing a supply

chain. They are:

1. Segmenting the customers according to their demands.

2. Customizing the logistics network through more robust logistics planning.

3. Listening to signals of market demand and planning the production according to

them.

4. Differentiating products closer to the customer avoids product obsolescence.

5. Sourcing strategically from suppliers who share the common goals improves the

supply chains efficiency.

6. Developing supply chain wide common technology strategy improves interaction

between the supply chain partners,

7. Adopting a common supply chain wide performance measure directs all the

supply chain partners to work towards a common goal.


Pillars of the Flexible Supply Chain

There are six pillars that have to be built for the success of a global supply chain planning

process. They are:

1. Integrating supply chain planning activities.

2. Establishing uniform business policies.

3. Unified supply chain planning information systems help in reducing the costs.

4. Establishing planning centres of excellence.

5. Shared performance measurements facilitate evaluating partner contributions and

worker skills.

6. A process based organizational structure supports global supply chain planning by

improving communication throughout the supply chain.

High levels of competition in international markets and in the United Kingdom have led

companies to the conclusion that to survive and thrive in harsh environments is not enough to

improve the operations of the company and integrate their internal functions. It is necessary to go

beyond the boundaries of the company and initiate exchange of information, materials and

resources with suppliers and customers in a much more integrated environment. The company

must use innovative approaches that benefit the company, together with all the stakeholders in

the supply chain (Harland, 2000, 28).


Strategies of Dell

It is one of the strategies of the company to stay ahead of competitors who take up a

direct-sales approach, and it should be proficient to decrease supplier inventory to gain important

leverage. Although arguably supply-chain expenses encompass all expenses acquired from raw

parts to final assembly Dell concentrates on Dell-specific inventory. These are the parts that are

planned to Dell’s specifications or stored in Dell particular addresses, such as its revolvers and

assembly plants. Because assembly plants contain inventories for only a couple of hours, Dell’s

primary goal, in this task, was the inventory in revolvers. Dell retains inventory only for six to

eight hours it travels across the assembly line while it takes 18 hours for the accomplished CPU

to be carried out by the truck to the integrated centre in Reno, Nevada. At the integrated centre,

the unit is bundle with the supervision of the workers and transported to the customers.

Supply Chain Management at Dell

The supply chain management at Dell is one of the most effective one that has allowed

the company to raise greater profits. Until now, the company's supplier-management processes

have relied mainly on manual means, encompassing distributed spreadsheets, voicemail and

faxed messages. It was clear to Dell’s leadership that, under advanced global expansion, such

means would finally reach their shattering point. To avoid this eventuality, they required to

partner with an innovative foremost with deep, international know-how in enterprise procedure

and scheme conceive a partner that could assist create and apply the essential mechanical

architecture and integration and more over supply deep task administration skills. That partner

was Accenture.


The rapid growth of Dell and a constant focus on increasing market share have created a

culture in which the numbers of (financial) results are often achieved at the expense of teamwork

and customer satisfaction. The survey showed: some team leaders are constantly rewarded and

progressed, despite the fact that they were raped a sense of their staff. Due to the adoption of

these negative aspects of culture, Dell remained in the shadows until the financial figures and

quotes of the company promised high returns. For eliminating the company introduced an

assessment method of 360 degrees and launched a quarterly voluntary and anonymous online

survey named as Tell Dell. Poll suggested about the thinking of the ordinary worker, its

executives, as well as identifies the problems they see.

Flexibility of Supply Chain in Dell

Until now, the company's supplier-management processes have relied mainly on manual

means, encompassing distributed spreadsheets, voicemail and faxed messages. It was clear to

Dell’s leadership that, under advanced global expansion, such means would finally reach their

shattering point. To avoid this eventuality, they required to partner with an innovative foremost

with deep, international know-how in enterprise procedure and scheme conceive – a partner that

could assist create and apply the essential mechanical architecture and integration and more over

supply deep task administration skills that partner was Accenture.

Findings of the Primary Research

The findings of the primary research are the answers that have been given by the officials

of the Dell and other companies. The interview questionnaire was sent to the officials and

managers of the Dell and other companies that have achieved top position in the market by


implementing effective supply chain management within its process. There were asked different

questions with the officials of the companies that are related to the supply chain flexibility of the

corporations. The officials replied differently to the answers and reflected their response to each

question that is mentioned in the following paragraphs.

Framework of the Supply Chain Flexibility

As there were included different questions in the questionnaire, the first question asked

about the supply chain flexibility of the corporation and its framework that is being implemented

within their company. The officials of Dell and other companies replied that the supply chain

flexibility is an important concept that is closely related to the supply chain management. The

supply chain flexibility makes the production process of the company more effective and

efficient. The flexibility of the supply chain process ensures that the changing levels of demand

and supply are efficiently met by the company and that the products are distributed on timely

basis among all the customers. The officials clarify that the supply chain flexibility also makes

the process of the company to be more competitive by increasing the quality of the products the

company is offering. In case of Dell, the officials replied that the flexibility of the supply chain

process has made the company to develop the system through which the customers can place

their orders directly via internet and the phones.

Effect of Supply chain flexibility on Company’s Performance

When asked about the effect of the supply chain flexibility on the performance of the

company, the officials replied that there is a great impact on the performance of the supply chain

process of the corporation. The flexibility in the supply chain process has made the company


able to meet the changes in the demand and supply of the corporations so that they can enhance

the quality of their products and make timely distribution. The process of the supply chain can be

made flexible by introducing variation in the quality of the products. The officials replied that the

products have been standardized due to the flexible supply chain process that has enhanced the

profits of the company. Moreover, the company is able to meet the changes in the demand and

supply that has given competitive advantage from the competitors.

The strategy has made the company able to introduce changes in the personal computers

that have attracted the customers. The flexibility in the supply chain process has also made it

possible to enhance the quality of the products so that the customers can be satisfied and place

orders more often. The performance of the company has been improved significantly due to the

introduction of the supply chain flexibility. It has also made possible for the company to make its

process systematic that can facilitate the product managers by minimizing the time taken by the

each process. The officials also replied that the flexibility of the supply chain has enabled the

company to enhance the variety of products however it has led the company to face intensified

competition.

Recommendations

The supply chain process of Dell is one of the most reliable one however there is a need

to enhance the operations of the corporations. The supply chain process of the company should

be made more effective in order to ensure the timely distribution of the products. As the

company has adopted the supply chain management system that enable the customers to place

the order directly through the internet or phone, the company should make more improvements

in the quality of its products by making innovation in personal computers. The company should


also make its supply chain process more flexible so that it can raise the profits to significant

level.

Contributions

The research study has made great contributions to the topic of the supply chain

flexibility as there is available limited amount of information on the supply chain flexibility. The

research study has highlighted the importance of the supply chain flexibility in the supply chain

management of the corporation. Similarly, the process of the supply chain management has been

discussed that is implemented by t he Dell in its operations.


CHAPTER 5: CONCLUSION

The results can be anticipated with the fact that the efficiency of the supply flexibility

plays an important role in the logistics management of the company. As the logistics is

considered to be an important factor in the supply chain management, it facilitates the

transportation of goods from manufacturers to the customers that helps in affecting the firm’s

performance. In case of Dell, the company has developed the “direct build to order” model for

sales that is the part of its effective supply chain management. The presence of effective and

flexible supply chain and enhanced direct sales has given competitive advantage to the company.

Similarly, the logistics management has also been greatly improved due to the flexible supply

chain process implemented within the company.

It can further be concluded that the supply chain process can make the logistics

management more efficient that can enhance the profits of the company. The company has

adopted the supply chain flexibility that has promised the enhanced quality and timely

distribution of the products.

It can also be concluded that the constantly altering expertise influences the Dell’s

success. The major method Dell uses is alignment in order to accomplish and maintain their

comparable advantage. This method implies the exclusive and direct to customer business

pattern. The Internet is Dell’s key achievement constituent which results in smaller costs to

customers than other retailers. The reason behind this is because customers notify Dell precisely

what they want and Dell conceives goods for the consumer without experiencing wasteful assets

in production.


REFERENCES

Azadegan, A., Dooley, P. Carter, L. and Carter, R.(2008). Supplier Innovativeness and the Role

of Interorganizational Learning in Enhancing Manufacturer Capabilities,” Journal of

Supply Chain Management, (44:4), Pp. 14-35.

Bagozzi, R., Yi, K. and Phillips, L. (2002) Assessing Construct Validity in Organizational

Research,” Administrative Science Quarterly, (36:3). Pp. 421-458.

Baier, C., Hartmann, E. and Moster, R. (2008) Strategic Alignment and Purchasing Efficacy: An

Exploratory Analysis of their Impact on Financial Performance,” Journal of Supply Chain

Management, (44:4) Pp. 36-52.

Bailey, P., D. Farmer, D. Jones and D. Jones. (2005) Purchasing Principles and Management,

Prentice Hall, London,. Pp. 132-145

Beamon, B. (1999) Measuring Supply Chain Performance,” International Journal of Operations

& Production Management, (19:3), , Pp. 275-292.

Catalan, M. and Kotzab, M. (2003) Assessing the Responsiveness in the Danish Mobile Phone

Supply Chain,” International Journal of Physical Distribution & Logistics Management,

(33:8), , Pp. 668-685.

Choi, T. and Dooley, K. (2009) Supply Networks: Theories and Models,” Journal of Supply

Chain Management, (45:3), Pp. 25-26.

Choi, T. and Hartley, L. (2002) An Exploration of Supplier Selection Practices Across the

Supply Chain,” Journal of Operations Management, (14:4), Pp. 333-343.

Christopher, M. (2000) The Agile Supply Chain Competing in Volatile Markets,” Industrial

Marketing Management, (29). Pp. 37-44.


Christopher, M., Lowson, R. and Peck, H. (2004) Creating Agile Supply Chains in the Fashion

Industry,” International Journal of Retail & Distribution Management, (32:8). Pp. 367-

376.

Claycomb, C. and Frankwick. L. (2004) A Contingency Perspective of Communication, Conflict

Resolution, and Buyer Search Effort in Buyer–Supplier Relationships,” Journal of Supply

Chain Management, (40:1), ,Pp. 18-34.

Conner, R. and Prahalad, K. (2001) A Resource-Based Theory of the Firm: Knowledge Versus

Opportunism,” Organization Science, (7:5), , Pp. 477-501.

Duclos, L., Vokurka, R. and Lummus, R. (2003) A Conceptual Model of Supply Chain

Flexibility,” Industrial Management & Data Systems, (103:6), Pp. 446-456.

Fine, C. (2000) Clockspeed-Based Strategies for Supply Chain Design,” Production and

Operations Management, (9) Pp. 213-221.

Garavelli, A. (2003) Flexibility Configurations for the Supply Chain Management,” International

Journal of Production Economics, (85:2), , Pp. 141-153.

González-Benito, J. (2007) A Theory of Purchasing's Contribution to Business Performance,”

Journal of Operations Management, (25:4), Pp. 901-917.

Gosain, S., Malhotra, A. and Sawy. A. (2005) Coordinating for Flexibility in e-Business Supply

Chains,” Journal of Management Information Systems, (21:3), Pp. 7-45.

Gulati, R. (2005) Social Structure and Alliance Formation Patterns: A Longitudinal Analysis,”

Administrative Science Quarterly, (40:4), Pp. 619-652.

Gunasekaran, A. (2003), Agile Manufacturing: A Framework for Research and Development,”

International Journal of Production Economics, (62), Pp. 87-105.


Gunasekaran, A., Patel, C. and Tirtiroglu, E. (2001) Performance Measures and Metrics in a

Supply Chain Environment,” International Journal of Operations & Production

Management, (21:1/2), Pp. 71-87.

Hahn, C., Watt, A. and Kim, Y. (2000) The Supplier Development Program: A Conceptual

Model,” International Journal of Purchasing and Materials Management, (26:2), Pp. 2-7.

Harland, C., Caldwell, D. Powell, P. and Zhang, J. (2007) Barriers to Supply Chain Information

Integration: SMEs Adrift of Elands,” Journal of Operations Management, (25), Pp. 1234-

1254.

Hartley, J. and Choi, Y. (2002) Supplier Development: Customers as a Catalyst of Process

Change,” Business Horizons, (39:4), , Pp. 37-44.

Hausman, H. (2005) Supply Chain Performance Metrics. The Practice of Supply Chain

Management, Springer Science & Business Media, Inc., New York. Pp. 165-182

Hines, P. (1994) International and Localization of the Kyoryoku Kai: The Spread of Best

Practice Supplier Development,” International Journal of Logistics Management, (5:1),

Pp. 67-72.

Holcomb, T. and Hitt, M. (2007) Toward a Model of Strategic Outsourcing,” Journal of

Operations Management, (25), Pp. 464-481.

Hong, P. and Jeong, J. (2006) Supply Chain Management Practices of SMEs: From a Business

Growth Perspective,” Journal of Enterprise Information Management, (19:3), Pp. 292-

302.

Humphreys, P., Li, L. and Chan, Y. (2004) The Impact of Supplier Development on Buyer-

Supplier Performance,” OMEGA, (32:2), Pp. 131-143.


Inkpen, A. and Tsang. K. (2005) Social Capital, Networks, and Knowledge Transfer,” Academy

of Management Review, (30:1), Pp. 146-165.

Ittner, C., Larcker, F. Nagar, V. and Rajan, M. (2001) Supplier Selection, Monitoring Practices,

and Firm Performance,” Journal of Accounting and Public Policy, (18), Pp. 253-281.

Kei, M., Tan, K., Wei, T. Saarinen, V., Tuunainen, D. and Wassenaar, A. (2000) A Cross-

Cultural Study on Escalation of Commitment Behavior in Software Projects,” MIS

Quarterly, (24), Pp. 299-325.

Ketchen, D. and Hult, M. (2007) Bridging Organization Theory and Supply Chain Management:

The Case of Best Value Supply Chains,” Journal of Operations Management, (25), Pp.

573-580.

Krause, D. and Ellram, M. (2001) Success Factors in Supplier Development,” European Journal

of Physical Distribution & Logistics Management, (3:1), Pp. 21-31.

Kumar, V., Fantazy, K., Kumar, U. and Boyle, A. (2006) Implementation and Management

Framework for Supply Chain Flexibility,” Journal of Enterprise Information

Management, (19:3), Pp. 303-319.

Lau, R. (2000) Strategic Flexibility: A New Reality for World-class Manufacturing,” SAM

Advanced Management Journal, (61:2), Pp. 11-15.

Lavie, D. (2006) The Competitive Advantage of Interconnected Firms: An Extension of the

Resource-Based View,” Academy of Management Review, (31:3), Pp. 638-658.

Lee, H. (2004) The Triple-A Supply Chain,” Harvard Business Review, (82:10), Pp. 102-112.

Lee, K., Lim, G. and Tan, S. (2000) Dealing with Resource Disadvantage Generic Strategies for

SMEs,” Small Business Economics, (12:4), Pp. 299-311.


Li, S., Ragu-Nathan, B., Ragu-Natha T., and Rao, S. (2006) The Impact of Supply Chain

Management Practices on Competitive Advantage and Organizational Performance,”

OMEGA, (34), Pp. 107-124.

Lummus, R., Duclos, K. and Vokurka, J. (2003) Supply Chain Flexibility: Building a New

Model,” Global Journal of Flexible Systems Management, (4:4), Pp. 1-13.

Macbeth, D. and Ferguson, N. (1994) Partnership Sourcing, Prentice Hall, London Pp. 165-183

Madhavan, R., Koka, R. and Prescott, J. (2002) Networks in Transition: How Industry Events

(Re) Shape Interfirm Relationships,” Strategic Management Journal, (19:5), Pp. 439-

459.

Maguire, S. and Koh, L. (2007) The Adoption of e-Business and Knowledge Management in

SMEs,” Benchmarking: An International Journal, (14:1), Pp. 37-58.

Mason, S., Cole, M., Ulrey, B. and Yan, L. (2002) Improving Electronics Manufacturing Supply

Chain Agility through Outsourcing,” International Journal of Physical Distribution &

Logistics Management, (32:7), Pp. 610-620.

McCutcheon, D., Grant, R. and Hartley, J. (2001) Determinants of New Product Designers'

Satisfaction with Suppliers' Contributions,” Journal of Engineering & Technology

Management, (14:3/4), Pp. 273-290.

McKone-Sweet, K. and Lee, T. (2009) Development and Analysis of a Supply Chain Strategy

Taxonomy,” Journal of Supply Chain Management, (45:3), Pp. 3-24.

Mentzer, J., Foggin, H. and Golicic, L. (2000) Collaboration: The Enablers, Impediments, and

Benefits,” Supply Chain Management Review, (4:4), Pp. 52-57.

Miles, R. and Snow, C. (2007) Organization Theory and Supply Chain Management: An

Evolving Research Perspective,” Journal of Operations Management, (25), Pp. 459-463.


Narasimhan, R., Talluri, S. and Das, A (2004) Exploring Flexibility and Execution Competencies

of Manufacturing Firms,” Journal of Operations Management, (22), Pp. 91-106.

Novack, R. and S. Simco, W. (2002) The Industrial Procurement Process: A Supply Chain

Perspective,” Journal of Business Logistics, (12:1), Pp. 145-167.

O'Leary-Kelly, S. and Vokurka, J. (2001) The Empirical Assessment of Construct Validity,”

Journal of Operations Management, (16:4), Pp. 387-405.

Otto, A. and Kotzab, H. (2003) Does Supply Chain Management Really Pay? Six Perspectives

to Measure the Performance of Managing a Supply Chain,” European Journal of

Operations Research, (144), Pp. 306-320.

Pedersen, E. (2009) The Many and the Few: Rounding Up the SMEs that Manage CSR in the

Supply Chain,” Supply Chain Management: An International Journal, (14:2), Pp. 109-

116.

Podsakoff, P. and Organ. W. (2001) Self-Reports in Organizational Research: Problems and

Prospects,” Journal of Management, (12), Pp. 69-82.

Pujawan, I. (2004) Assessing Supply Chain Flexibility: A Conceptual Framework and Case

Study,” International Journal of Integrated Supply Management, (1:1), Pp. 79-97.

Robinson, J., Shaver, R. and Wrightsman, L. (2001) Measures of Personality and Social

Psychological Attitudes, Harcourt Brace Jovanovich, San Diego, CA. Pp. 67-91

Sanchez, A. and Perez, P. (2005) Supply Chain Flexibility and Firm Performance,” International

Journal of Operations & Production Management, (25:7), Pp. 681-700.

Sanchez, R. (2005) Strategic Flexibility in Product Competition,” Strategic Management Journal,

(16:5), Pp. 135-159.


Scannell, T., Vickery, K. and Droge, C. (2000) Upstream Supply Chain Management and

Competitive Performance in the Automotive Supply Industry,” Journal of Business

Logistics, (21:1), Pp. 23-48.

Schroeder, R., Bates, A. and Junttila, M. (2002) A Resource-Based View of Manufacturing

Strategy and the Relationship to Manufacturing Performance,” Strategic Management

Journal, (23), Pp. 105-117.

Simatupang, T., Wright, A. and Sridharan, R. (2002) The Knowledge of Coordination for Supply

Chain Integration,” Business Process Management Journal, (8:3), Pp. 289-308.


APPENDIX

Interview Questionnaire

1. What is the effect of Dell’s supply chain flexibility on the performance of the company?

2. What is the framework of the supply chain flexibility that is adopted by the company at

present?

3. Is there any change in the operations of Dell after adopting the strategy of supply chain

flexibility?

4. Do you think that the Dell has effective supply chain flexibility?

5. What general framework of strategies has been adopted by Dell under its present supply

chain?

6. How supply chain flexibility has enabled the firm to remain competitive in the industry?

7. Has supply chain flexibility helped Dell to introduce new products in the respective

market?

8. According to you, what are the factors that made the Dell to achieve higher bargaining

power in the industry with respect to its buyer?

9. How the supply chain of Dell has helped it to face the challenges as it enter new markets

of India and China?

10. What steps Dell should take to make sure the efficient supply chain in the new markets it

is entering?


Diagrams

Figure 1: Supply Chain Process at Dell

Figure 2: Supply Chain Process in Dell

Figure 3: Dell’s built to order / Direct Sales Value Chain


Figure 4: Supply Chain Cycle in Dell

Figure 5: Comparison of Dell’s performance with its competitors

Figure 6: Stepwise Process of Supply Chain

rev of supply chain mgt dell 2

Recommended

Recommended

More Related Content

What's hot

What's hot (8)

Viewers also liked

Viewers also liked (8)

Similar to rev of supply chain mgt dell 2

Similar to rev of supply chain mgt dell 2 (20)

Recently uploaded

Recently uploaded (20)

rev of supply chain mgt dell 2