Business Strategy

 Essay on Business Approach

Supply Chain Management

Chapter 5

Network Design in the Supply




A ideal framework intended for facility site

Multi-echelon sites

Gravity techniques for location

Plant location versions


1 . Network Design and style Decisions

 Facility function: What role should each facility enjoy? What techniques should be performed at each center?

 Service location: Where should features be located?

 Capacity allocation: Just how much capacity ought to be allocated to each facility?

 Market and supply allocation: What markets should certainly each facility serve? Which in turn supply resources should feed each service?

 (How many vegetation, DC's, retail stores, etc . to develop? )


Dell, Inc.

 Patterns, develops, produces, markets, solutions and supports a range of computer systems, which includes

enterprise devices (servers, storage area and marketing products and workstations), notebook computer devices,

desktop computer

devices software and peripherals.

 Services that help maximize information technology (IT), rapidly deploy systems and educate IT professionals and consumers.

 Financing alternatives, asset supervision services and other customer financial services for its organization and client customers in the usa through Dell Financial Services D. P., a joint venture among Dell and CIT Group, Inc.

 The Company is generally managed over a geographic basis: the Unites states, Europe and Asia Pacific-Japan.

Vital Figures

Founded in 1984

Employs 83, 000 people worldwide

Revenue: 62. 70 B

Enterprise Benefit: 19. 2 B

Profit Margin: several. 36%





year 1994



Founded by Michael Dell

Assemble & market individual PCs

Sell off through stores

Withdrawn from retail

PC outsourcer

to retail funnel


Focus on providing the best possible consumer

experience simply by directly advertising computing items

and companies online

Business Model

Direct revenue

– Direct customer relationship

– Products and services targeted at specific customer sections


– Lean production

– Just-in-time production

– Close marriage with suppliers

PC Circulation


PC Maker






6% cost benefits

Detailed customer knowledge




Limited buyer reach

Dependence on strong company

Go to price tag channel in 2007

Market share lessens

– PERSONAL COMPUTER shipment device share: HORSEPOWER 19. 1%, 3. 9% over Dell.

– first quarter, 3 years ago, HP: twenty eight. 2% market growth, Dell: -6. 9%

Dell's past CEO Kevin Rollins resigned, Michael

Dell back

– " The direct model was a trend. It's not really a religion, "

A large amount of customers still need to see and touch before

putting down their very own hard earned money

COMPUTER Market Shares in 2013 (US)

LAPTOP OR COMPUTER Market Stocks and shares in 2013


Client Segmentation


– Corporations buying at least $1M annually (Fortune 1000)

– 60-70% of total revenue

– Committed sales staff


– Small & medium businesses

– Individual customers (home & office)

Public & international customers


Order -> configuration

Kitting: chassis + spec piece

– Cords, connectors, motherboard, memory from inventory

– Other necessary modules (HD, CD-ROM, DIGITAL VIDEO DISC, etc . )

Software down load

Power & test


Business Procedure Improvement

Product redesign

– Various types share parts

Suppliers redux

15 important suppliers (85% of materials)

World class quality

Warehouses 12-15 mins from Dell production facilities

2 hours of inventory

Process improvement

– 2hrs pertaining to assembly

Virtual integration

General Business Tactics

Cost management: focus on getting advantages by simply reducing their economic costs below the costs of its competitors


Size big difference

Economies of scale

- volume of creation

- particular machines

- cost of plant & gear

- employee specialization



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