Ideally, the overall success of Dell Computer Corporation in the last couple of decades to the rest of PC industry has no doubt made headlines in the business world. Consequently, the company has grown into one of the most significant forces to be reckoned in the industry. Despite recent clear competitions from other companies such as Apple and Hp, Dell has been able to match the demands of the customers and probably improve its services globally. However, there has been a need to revitalize Dell’s supply chain to make it even more competitive in the contemporary society. This paper proposes to discuss in detail the improvement in supply chain management of Dell Computer Corporation. The article will achieve this by identifying the reason why I specifically chose Dell company and the why I think there should be an improvement in Dell’s supply chain management.
Primarily, one of the main reasons why I chose Dell Computer Corporation is the fact that it was among the company that pioneered the “direct model,” particularly for its computer some few decades ago. Consequently, I saw the importance of tracing the development that the company has made in regards to the supply chain management in the contemporary society. Additionally, the company is among the largest manufacturer and supplier of computers across the globe and, therefore, learning its supply chain management trends would be important.
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Making improvements in the supply chain management is often as a result of various trends in the business world. Dell had been ranked as number one some few years ago in terms of growing its revenue while delivering rather strong profitability compared to other PC organizations (Fredendall & Hill, 2016). However, in recent years, there has been some slide regarding to its profitability and delivery of goods and services which are affected by the way the firm supplies its products to its consumers (Fredendall & Hill, 2016). This is probably one of the reasons why Dell needs to reinvent itself regarding supply chain to compete with other companies. While Dell’s clients used to order for the type of PC they imagined and received it at the most competitive prices, the overall demands of these customers have shifted in recent times.
Furthermore, due to recent demands by customers to have a touch of their computers before they decide whether to buy them or not, there is a need for an improvement in the supply chain management of the company. Consequently, there is a need for the company to depend on a contemporary foray of retail. Additionally, due to a variation of customers or rather grouping of clients defining what they need has seen the demand for a shift of focus to a “segmented supply chain” (Avindran & Warsing 2016). This strategy would, therefore, allow Dell to work closely with the suppliers who have proved to be an important part of the supply chain.
Inventory management is certainly another reason that should be looked at to improve the supply management of Dell. In rent times, there have been delays of delivery of computers or rather freight time due to poor management of inventories in this company. To attain success that Amazon has achieved, Dell should reshape its supply chain system to enable it to go down to the lowest levels of inventory (Christopher, 2016). This can be done through logistics of the order way up to a rather exceptional distribution chain of products covering the international market.
In a nutshell, it is evident that Dell requires a reshaping of its supply chain management to effectively compete with other big companies such as Apple and HP. A slow delivery process of computers across the globe is one factor that facilitates the need for revitalization of Dell’s supply chain management in the contemporary society.
References
Christopher, M. (2016). Logistics & supply chain management . Pearson UK.
Fredendall, L. D., & Hill, E. (2016). Basics of supply chain management . CRC Press.
Avindran, A. R., & Warsing Jr, D. P. (2016). Supply chain engineering: Models and applications . CRC Press.
