Business operation

Business operation

Introduction

The role of supply chain management and its related parameters is becoming more and more significant in the business market of today's world. From a pure and real operational procedure to Supply chain management of 1960s, the market and business have transformed to a more integrated and strategic approach and method. Therefore, supply chain management that includes the management of all the activities from raw material to the finished product, is considered as the resource of innovation and competence in this modern world. In this modern world, where technology is ever growing, the organizations are competing not only through their ranges of product, customer relationship but also through their efficient logistics and supply chains.

In all supply chain and logistic activities including inventory management, warehouse management, innovation and much more, Dell Corporation has been an example of efficient supply chain management. Dell has become one of the most successful organizations in the field of technology solutions, services and support. Dell has enforced and aligned its strategies with the design of its logistics and supply chain. The innovative concepts and ideas of its founder, Michael Dell, and their successful application have transformed Dell into the most efficient logistics and innovated organizations of the world.

System Overview in Dell Corporation

Dell was founded by Michael Dell in 1984, while Michael was studying in Austin in the University of Texas. From the beginning the direct sales model was deployed. Initially computers were sold through phones and were manufactured or built according to the specification of the customers. For a short time tell used the retail model from 1990 to 1994 but again transformed itself into the strategy of direct model. Dell started to grow rapidly and in 1999 become the number one company of United States and number two globally in the field of technology especially Personal Computers. Dell's success was immense and it began with a student selling 100 computers in his first year of founding and then become one of the largest organizations having around35, 000 employees. Now Dell is also the competitor of IBM, HP etc (Manataki, 2007).

A brief description on the Dell's system. After the order is placed by the customer, on phone or through the official website on dell, Dell processes the customer order after the checking of credit (financial evaluation) and technical configurations evaluation (I.e. checking the technical configuration), that takes around few days (at least two to three days) and then the specified order is send to the manufacturing plant located in Austin, Texas. These manufacturing plants of Dell Corporation are capable of building, testing and packaging the specified products within eight hours. The general concept or idea is the dispatch of the product that is ordered first and typically Dell plans to send or ship the orders before or within five days after the receipt. However some exceptions exist. For example, Dell may estimate the schedule or timetable where there is a requirement to change the units that are defective or when experiencing large ...