Case Study Question 1
Supply chain management for Dell management is intended to extend Dell’s successful direct-sales method into the supply chain. The supply chain has helped Dell Company to increase the speed, and the quality of the quality of the information flow in between the company and the suppliers. Currently, Dell Company has the site called valuechain.dell.com which is essential for the communication between the company and the suppliers as far as the collaboration in supply management are considered.
The site used by Dell is important for exchanging the data, forecasted data, dynamic information and the new product ideas (David, and Evans).
Dell mass customization goes around the concept of build to order. Dell uses the builder model because the demand is not known until the customers have placed the orders. Dell performs thorough forecasting to ensure that the future demand for the products is estimated as a measure to avoid oversupply and undersupply of products. Dell embraces inventory customization because the gap between the forecasted information and the real demand is required to be small. The mass customization method which Dell uses have been to ensure that all the customers are attended; for example, the retail customers are tail shops thus some products are made ready for the retail customers while the bulk orders are made after the customer has placed the order (David, and Evans).
Mass customization makes customers more satisfied thus increases the number of customers in the market. Material cost and wastage in Dell are very minimal because all the inputs are pushed into the production unit just in time, and the cost of finished inventory is low since the finished products are sold directly to customers. The cash flow for Dell is high because the inventory is moving faster thus the inventories in the company are low. The time of responsiveness is reduced by the application of Mass customization (David, and Evans).
Collier, David A, and James R. Evans. Om3. Mason, OH: South-Western Cengage Learning, 2012. …