IT in DELL SCM

• Dell sells its computer systems directly to end customers, bypassing distributors and
retailers (resellers). They did this by introducing online ordering system.

• Dell's supply chain consists of only three stages:

– the suppliers,
– the manufacturer
– end users.

• Online Ordering system allows direct contact with customers that allows DELL to:
– properly identify market segments,
– analyze the requirements and profitability of each segment
– develop more accurate demand forecasts.

• Dell matched supply and demand by taking orders from customers for computer
configurations through its online portal.
• The portal also allows customers to customize the configuration of the PC that they
order.
• Another advantage Dell gets by directly dealing with the customer is that it is able to
get the customers requirements regarding software to be loaded.
• They can use the PC’s the moment they arrive.
 IT in Walmart SCM
• Wal-Mart is one of the world’s largest private sector employers.
• Focus on improving sales, reducing costs, adopting efficient distribution and logistics
management systems and using innovative information technology (IT) tools.
• Efficient supply chain management practices.
• ‘Magic Wand’, a hand held computer is linked to in-store terminals through a radio
frequency network, that gives assistance to employees for tracking down the
inventory, deliveries and back-up merchandise in stores at the distribution centers.
• Application of IT in POS(Point of Sales) system.
– execution of both the order management and store replenishment of goods was made
possible by the use of the said POS system.
• centralized inventory data system :
– status of inventory levels
– location of every product (loaded or still in transit)
• By this means, the store is able to know what to expect and make sure that every
store has adequate supply to cater to the customers.