Dell & Zara - Supply Chain Management

Dell & Zara - Supply Chain Management

Dell - Supply Chain Management

Question 1

Dell has a direct supply chain that delivers products directly to the customers. This has enabled the firm to develop a direct relationship with its customers in a cost effective manner. Since the company has customized products therefore this is the most efficient approach to fulfill customer needs, as it ensures superior tailored service and support with highest quality and most relevant technology (Chopra & Meindl, 2012). Direct supply chain has enabled the firm to have more flexible and responsive supply chain for satisfying customer needs. Since Dell uses two stages (retailer and manufacturer) to deliver products to customers, which do not need to be integrated, thus it allows them to have a simpler information infrastructure. It also allows having simpler order visibility (Fugate & Mentzer, 2004).

Question 2

Direct Selling has resulted in significant advantages for Dell however yet the company has to overcome various challenges. Changes in the marketplace have resulted in increased challenges for the company. Although the Dell's supply chain was an effective method to allow high degree customization, however with increase in power of hardware decreased the value of customization. Dell's supply chain was unable to achieve much growth in emerging markets for instance china and India. Thus the company has to bring changes in its supply chain structure to improve its performance (Chopra & Meindl, 2012). Dell should increase its reliance on contract manufacturers in low cost countries to assemble its products. Dell has developed a website for selling its products over internet; however this has resulted in the disadvantage of being unable to attract customers who are not willing to wait for five to ten days to receive their order.

Question 3

Dell has been successful in delivering its products ...