IOM Operation strategy of

product selection and design

quality

process

location layout

human resources

supply chain

inventory

scheduling

maintenance

Dell dell offers customizeable product, where customer can choose their computer specification themselve. the strategy of giving customer chance to build/design their own computer become the competitive advantage for dell to distinct itself from other competitor

in terms of quality, dell assure the quality of its products starts from its earliest stage of supply chain, which is from the supplier. the strategy is by urging the supplier to meet the quality standard by dell and having certification of the quality. thus, Dell will receive qualified product to be proceed further. Dell also require quality control to be conducted after all the components assembled, to make sure all the units work well. the quality of Dell's production process also guaranteed by the ISO certification. the production process of the dell's computer started from receiving the order from customer. then, the computer will send all the components needed to meet the customer's computer specification, while then the employee receive the selected components and assamble the components and next the products that passed the quality control stage will be packed and delivered to customer's home. the supplier get the hourly updated data about dell's inventory, that give supplier accurate amount and best time to deliver supply to Dell. thus, the bullwhipped effect will eliminated. the selection of Dell's factory is close to the supplier because of... the layout of dell's factory facilitate the production process that using 'made to order' system to run smoothly. so that the flow of information and components/product can be effectively and efficiently delivered to each stage of the production process. the production process is managed and organized in using team based. Dell use incentive to encourage the individual within team to perform. 360 degrees of performance evaluation also implemented the made-to-order system allows Dell to eliminate intermediaries, thus it exclude the role of retailer on its supply chain. plus, it also allows Dell to have very small inventory, so that it needs no warehouse. therefore, the supply chain of dell consist only supplier-manufacturer-end customer. however, in other countries outside US, Dell dont use the made to order system, and use the retailer facility to handle the international market. as mentioned previously, the made to order system allows Dell to have no or very small (if any) inventory. thus will extremely reduce the cost of handing inventory. meanwhile, in countries where Dell's made to order system do not implemented, it is indeed required Dell to have inventory based on demand forecasting since dell using made-to-order system, the production scheduling is based on the custmer's order. however, to take advantage of economies of scale, Dell gather the order received within two hours then deliver the order information to the next stage of production. the information of Dell's supply inventory updated in timely basis thus the the scedule to order components to supplier will automatically sent as needed when needed. maintenance set regularly on the production assembly facility, further themaintenance also held even when the product used by customer in the form of maintenance service as part of aftersales service

Amazon amazon sell products primarily through online channel. therefore, enable them to facilitate customer with wide range of product and available 24h/7days including holiday. the product provided is vary from books, cds, to toys and home appliance.

to ensure the quality performance, Amazon

keep inventorie on products that is high in demand, use separated