Individual Assignment on Supply Chain Management.

Course code:
ONM4201E

Instructor’s name:
Ah Huai Ah Chan 

Name:
Sharminie D/O Ravindaran

student ID:
I20019408

Program:
Bachelor of Business (Hons) Human Resource Management.

Term:
Term 9, BBUS-LS, JUN, 2020
Contents
Chapter 1) Introduction
Chapter 2) Literature Review 2.1 Competitive Advantage within Supply Chain
2.2 Inventory Management 2.3 Integration Strategies
Chapter 3) Background of Company
3.1 Dell, incorporated Company
3.2 Supply Chain of Dell
3.3 Inventory Management in Dell
3.4 Integration Strategies
Chapter 4) Key Issues That Aries in Dell Network Service
4.1 Increased Service Support
4.2 Competitive Market
4.3 Lack of Competitive Innovation
Chapter 5) Findings
5.1 Using the SCOR Model Top-Down Analysis
5.2 End-to-End Perspective
5.3 RFID application in transportation
5.4 Use of a hybrid system that includes both the CTO and the BTO
Chapter 6) Conclusion
Chapter 7) Personal Reflection Chapter 8) References
Introduction
The supply chain is a full system for making and delivering items or services, from raw
material acquisition through end-user delivery. The supply chain encompasses all aspects of
the manufacturing process, including: B. Actions taken at each stage, transmission of
information, conversion of raw resources into useable commodities, human resources, and
other components used in the end product or service.2019)

This research attempts to analyse Dell's supply chain in light of the relevance of supply chain
management to the company's solvency and profitability. It will first seek for a supply chain
arrangement similar to the one utilised by Dell. Following identification, a literature
assessment of the supply chain will be undertaken to determine its structure, advantages, and
limits, and then the necessary recommendations will be provided as part of the review's
conclusion. The report will also concentrate on the functioning of the supply chain system in
order to identify some of the company's important logistics. Importantly, the report will
discuss some of the major issues confronting the company's logistics and supply chain. In
addition to the difficulties, it will strive to identify some of the chain's strengths to aid in the
next category. As a result, the following category will comprise re-designing the company's
logistics operation to achieve cost and time consumption reduction.
Chapter 2) Literature Review

2.1 Competitive Advantage within Supply Chain

A supply chain is a network of interactions that connects upstream and downstream activities,
as well as all parties involved in the link chain. For example, if a specific good or service
must be delivered to the customer, the raw materials required for manufacture, modes of
transport and storage for the raw materials, transportation of finished goods to retailers, and
coordination involved in getting the goods to the customer are all components of the supply
chain that extends from the suppliers to the clients. In other words, the corporation and the
partners in this chain are linked in a variety of ways. Supply networks may be sources of
competitive advantage in modern times since efficient supply chain management leads to cost
savings and synergy between supply chain components leads to increased profitability for
enterprises. As a result, many business leaders have focused their efforts on simplifying
supply chains in order to improve both the top and bottom lines.

2.2 Inventory Management

Inventory is the accounting of commodities, component components, and raw materials used
or sold by a firm. As a business owner, you manage inventory to ensure that you have enough
product on hand and to identify when there is a shortage. Goods control assists businesses in
acquiring the appropriate quantity of inventories at the appropriate moment. This strategy,
also known as stock control, helps to optimise inventory levels, save storage costs, and
eliminate stockouts. The inventory process of a business maintains inventory when it is
received, kept, handled, withdrawn, or consumed as work in progress. The inventory method
decides how long items and raw materials may be used.

2.3 Integration Strategies

Integration strategies are also known as Management Control Strategies. Integration

techniques give a company back control over its distributors, suppliers, and rivals. Vertical
and horizontal integration techniques are the two types. Vertical integration is a method used
by businesses to take control of their suppliers or distributors in order to gain market
dominance, minimise transaction costs, and secure supply or distribution routes. Vertical
integration may be divided into two types: forward integration and backward integration.
Forward integration is a business strategy in which a corporation gains ownership or
increased influence over its previous clients.
Chapter 3) Background of Company

3.1 Dell, incorporated Company

Dell is a computer technology company that designs, manufactures, sells, repairs, and
services computers and computer-related items. Dell Inc. is a worldwide firm that designs,
develops, and produces personal computers (PCs) and computer-related goods. It was
previously known as PC's Limited (1984–88) and Dell Computer Corporation (1988–2003).
The firm is one of the largest PC providers in the world. The corporate headquarters of Dell
are in Round Rock, Texas. Dell began by delivering customised updates for PCs, first
operating from a dorm room. Dell produced their first notebook computer, the 316LT, in
1989. Dell's mobile technology advanced in the years that followed. In 1991, Dell introduced
the first colour notebook computer, and in 1994, the business was the first to provide
longlasting lithium-ion batteries. Dell began selling PCs online and providing customer
assistance through the Internet in 1996. In 1999, online sales helped Dell overtake Compaq
Computer Corporation as the biggest seller of PCs in the United States. Dell extended its
product portfolio in the early twenty-first century to include televisions, digital cameras, and
a variety of computer-related gadgets. The firm was renamed Dell Inc. in 2003 to reflect a
foray into the larger consumer electronics sector. However, Dell's market dominance began
to fade, and the business was sold to Michael Dell and the private equity firm Silver Lake
Partners for $25 billion in 2013. EMC, a data storage corporation located in the United States,
was purchased by the company and an investment group in 2016. With a value of more than
$60 billion, the merger was the biggest technological transaction at the time.
(Britannica,2020)

3.2 Supply Chain of Dell

Dell's supply chain technique, which is widely regarded as one of the best in the world, will
be evaluated. Dell's supply chain will be scrutinised in terms of supply chain integration
methodologies and demand management issues. Dell follows a different business approach
than its competitors, known as the 'direct model.' Dell use this strategy to offer PCs to
customers directly rather than through a retail channel.

As a consequence, it establishes direct contact with each individual customer, who has been
separated into groups to facilitate approach. The three principal client categories are large
organisations, small and medium businesses, and individual clients.Another characteristic
that separates Dell's supply chain is the notion of build-to-order. Following the buyer's
purchase, all configuration settings are transferred to the manufacturing floor, and PC
assembly begins. After the computer is built and all software is downloaded, it will be
shipped to the customer using 3PL.

3.3 Inventory Management in Dell

Dell can retain a competitive advantage over competitors in the computer industry due to a
very efficient supply chain. Dell's market profits have increased due to its expertise in
information, communication, e-commerce, e-business, and internet and web technologies.
Dell employs a Just-In-Time (JIT) inventory strategy that needs only six days of inventory.
Because of this inventory approach, Dell has been able to enhance its profit margins. The
most major liabilities of a business are inventory and labour. Because Dells, inventory is only
a 6-day cycle, they have been able to cut down costs on warehousing, hiring people to track
and maintain inventory, and thus avoid using outdated technology.

3.4 Integration Strategies

Better planning and execution integration has emerged as a critical supply chain concern.
As a result of extensive information sharing, inventories have been considerably reduced.
Despite having less stockpiles, Dell's clever use of information has enabled them to reduce
the time it takes from purchase to delivery.

Chapter 4) Key Issues That Aries in Dell Network Service

4.1 Increased Service Support
Because of the employment of the direct method, the company is obligated to provide total
help to its customers all over the world. As a result, they will incur increased costs that
merchants would otherwise cover. Because of the rising need for support services, the cost
reductions realised during direct approach manufacturing may become insignificant in the
coming years. Of course, as the number of clients rises, so does the demand for support
services.
4.2 Competitive Market
Indeed, Dell is competing in the computer industry, where many new competitors are rising.
In this environment, firms such as Apple are well-organized in terms of innovation and the
development of new products (Huy, 2012). This implies that the firm will incur a high
production cost in order to engage in R&D.
This comes as the firm attempts to improve itself and decrease its financial constraints. As a
result, it cannot afford to delay updating and adapting its operating mechanism since
competitors may gain an advantage.
4.3 Lack of Competitive Innovation
In terms of innovation and the creation of new goods, Dell has remained somewhat stagnant.
In this aspect, firms such as Apple have created extremely essential and critical goods that
have drastically transformed the world. The Apple personal computer, in particular, has
received excellent marks for its quality and user friendliness. As a result, if the present pace
of innovation is maintained, Dell will be unable to retain its consumers.
Chapter 5) Findings
5.1 Using the SCOR Model Top-Down Analysis
SCOR Metrics should be used by Dell to benchmark on a number of computer-related topics.
The following are some of the most important variables to consider. Regional profitability
and production performance of competitors The trend in the computer industry during the last
10 years can be utilised to estimate future market developments. The supply chain's
performance and the technologies used by competitors to enhance delivery
5.2 End-to-End Perspective
The end-to-end visibility of the supply chain enables for the tracking of product status across
the supply chain. It allows data to be entered into a cloud storage database. It also allows the
actors to use data that has been directly imported from the system. This means that a supply
chain actor has the ability to move data from the system to the business system. As a result,
receiving and transmitting data from the Dell database is simplified, resulting in more
effective communication.
5.3 RFID application in transportation
In addition to validation, the proposed method ensures the use of RFID throughout
transportation. As a result, the RFID system offers clients a quick and fast way to trace their
things during transit. As a result, the RFID-enabled system will boost the company's service
availability and dependability throughout transportation. Importantly, RFID cost reduction
supports trust and responsiveness in transportation automation advancement.
5.4 Use of a hybrid system that includes both the CTO and the BTO
The company should put in place a hybrid system that includes both the CTO and the
BTO.The BTO will allow customers to order the needed features. Customers should be able
to place orders and get them within 24 hours. The combination of the CTO and BTO will
enable the organisation to provide new options to consumers. This is crucial for ensuring that
the supply chain adapts. In contrast to the BTO, which primarily aids in the maintenance of a
small inventory, it will increase storage capacity.

Chapter 6) Conclusion
It is unarguable that Dell uses a direct supply chain management method in which the
company interacts directly with its customers. The direct model is also linked to the BTO
system, which allows customers to place orders prior to product assembly and delivery. As a
result, the company's production and inventory expenditures may be reduced to zero. The
cost of support services, on the other hand, is particularly concerning since direct distribution
necessitates the business providing a service that would otherwise be provided by merchants.
This servicing cost, however, can be reduced by authenticating assembly parts and utilising
the franchise.
Chapter 7) Personal Reflection

Indeed, the preceding investigation gave important insights about Dell's supply chain
operation.chain. Dell has a direct strategy in which the company sells its products.
directly to customers As a result, the company keeps direct contact with its customers.
all throughout the world Indeed, it has been suggested that this is extremely useful since it
permits the a firm to cut production costs and use negative capital My very first
Customers should be able to seek assistance through internet platforms and built-in help.
If support services are automated, software is required. The company is the second
recommendation. should make every effort to keep support expenses below the costs saved
by the direct method throughout the production process Following that, the firm will provide
services to foreign countries. should think about implementing franchise systems This will
allow the firm to move some of the support costs to the resellers of the franchising scheme.
Finally, when shipping things to international countries, the firm should use merchants to
reduce support costs even further.
However, retailers should be used with restrictions and limits to ensure that they only help to
minimise support costs and balance with cost reduction throughout the production process.

Chapter 8) References

1. Britannica, The Editors of Encyclopaedia. "Dell Inc.". Encyclopedia Britannica, 11 May.

2020, https://www.britannica.com/topic/Dell-Inc. Accessed 31 January 2022.
2. Huy, P. (2012). Steve Jobs Post Scriptum. Medium Journal, 30(1)
. 3. Kenneth Karel Boyer, Frohlich and Hult, (2005)
4. Kim, K. (2011). A Study on Effects of Internal Marketing on Secretaries Job Satisfaction
and Organizational Commitment in IT Companies. Journal of the Korea Society of Computer
and Information, 12. 5. (Poirier, 1999)