Case Studies Of Companies Supply Chain Management

Case Studies Of Companies Supply Chain Management Dell was incorporated in 1994 by Michael Dell while he was a student at University of Texas, Austin. From its very first initiatives, direct selling model was adopted. In the beginning PC’s were sold over the phone and they were customized according to customers’ specifications. Dell returned to its direct selling model after using the retail channel from 1990 to 1994. In mid 1990’s, the company grew rapidly, thus becoming number one PC seller in the US and number two worldwide in 1999. Dell’s success continued over the following years, but it was not able to avoid the crisis in PC industry in the new millennium. Dell’s growth rate fell, resulting in the fall of its stock price. However, over the time, Dell managed to remain a highly successful company, and its growth rate continued to outperform the industry as a whole. Dell’s strategic choices and ways of realizing those choices have played an effective role in story Dell’s success. The supply chain management of the company is the key element in its successful business model. The core element of the company’s business model is its direct sales model, referred as ‘direct mode’, with the build to order strategy. In this work we have a look at an organisation with its sheer strategy and competitive view of the future created a giant in the industry. It has developed a business model which has a very little requirement of controlling variables, but with few efficient and critical models it has created an industry leader. It shows how Dell Inc has changed the dynamics of the industry and how it has helped in evolved with the industry. It is an $80 billion company which is created in just in time frame of 23 years. The strategy was to bypass the dealers in the field of personal computers and sell directly to the consumers. What will urge customers to buy online? The answer to these is to make the product build to order and provide them customiza tion. This business model gave Dell some great cost advantage over it peers. This strategy has given Dell- Information about the customer we can just buy and collaborate as per our requirement. This view gave them flexibility and coupled with the excellent supply chain that they created- they became what they are. In this model there are fewer things which can go wrong because there are only fewer things which can go wrong. There is no drag effect of 50000 people working with you.