PowerPoint Presentation
SUPPLY CHAIN MANAGEMENT[PC & LAPTOP]Team VERY NORMAL: Nguyn
ng Ch | V Sn Lm | on Ngc Chu | Lm | L c Huy LECTURER: Mr. NGUYN QUC
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ContentsDefinition of SCM Introduction about Dell3. Quality
management4. Demand management5. Logistic management6. Customer
Service7. Cashflow optimization & Interal collobration8.
Inventory management9. Benefits and limitation10. References
WHAT IS SUPPLY CHAIN MANAGEMENT?
Supply chain management (SCM) is the management of the flow of
goods and services.[2] It includes the movement and storage of raw
materials, work-in-process inventory, and finished goods from point
of origin to point of consumption (Wikipedia). 3
Founded year: 1/2/1984 | Founder: Michael DellRevenue: $59
billion(2015), is the 28th largest income in the United
States.Number of employees: 108,800 (2013)IndustryComputer
hardware, computer software, IT services, It consulting
ProductsPersonal computers, servers, peripherals, smartphones,
tv
www.dell.com
Headquartered: Round Rock, Texas, United States
DELL PC & LAPTOPS SUPPLY CHAIN
Dell shares information to suppliers. Indirectly by mail, phone
or internet.Directly by meeting each quarter combine exchanging
employees to support technology.
How to assess performance of supliers? Dell used a scorecard
that compares each supplier with its competitors based on cost,
quality, reliability and continuity of supplyQUALITY MANAGEMENT
ValueChain.Dell.com Operates as an extranet between Dell and its
suppliers.Suppliers can get informed about the level of inventory
in the supply chain, supply and demand data, component quality
metrics and new part transition.
QUALITY MANAGEMENT
Dell's new PC models are tested at the same time as the networks
that they reside on are tested. This cooperation with other vendors
reduced the testing period from 60 or 90 days to 15.
QUALITY MANAGEMENT
The i2 system (Supply Chain Planner, i2 Collaboration Planner,
and i2 Factory Planner to meet it supply chain needs) enables Dell:
Pull material in to its factories every two hours based on real
time customer order.Provide suppliers know factories and assembled
to meet customer demand. Automatically checking accessories follow
requirement parts and component list.Automatically and
electronically ordered directly from suppliers if the accessories
out of stock.
QUALITY MANAGEMENT
Ways for Dell to manage quality of SC : Conflict Free Mineral
Supplier Diversity Supplier Responsibility Conflict Free Smelter
Coalition Code of conduct Supplier Global Citizenship Commitment
Policies and Positions
QUALITY MANAGEMENT
Some of transportation partners:
LOGISTIC MANAGEMENT
3Cs strategy: Cube - Reduce packaging size. Content - Use
recycled or sustainable materials. Curb - Make packaging easily
recyclable.
LOGISTIC MANAGEMENT
LOGISTIC MANAGEMENT
Reverse Logistics This is efforts to decrease product return.The
product returned will be resold as Certified Refurbished, Dell
Outlet New or Scratch and Dent, and all Dell Outlet machines carry
a Same-As-New warranty.=> The products resold Increase from 90%
=> 94%.
LOGISTIC MANAGEMENT
The functions of Dells Logistics ServicesWarehousing service |
Drop in Box | Remove Item Multi Pack Over | Pack Pallets &
Crates | | Custom Packing | Ship Box Label | Order Consolidation |
| Time & Date Specific | Delivery. Inside Delivery | Customer
Carrier | International Shipping | Reporting & Notification
LOGISTIC MANAGEMENT
DEMAND MANAGEMENT
CTO (Configure to order): you can choose different hardware to
suit your needs such as adding more RAM, processor speed, selecting
a DVDBTO (Build to order): Dell pre-builds what they it believes
will be the most popular configurationsIn 1999, Dell introduced SAP
R/3 solutions on Dell PowerEdge serversWith new i2 technology ,
Dell able to profile customers, target them using their medium of
preference, and also measure the results. Dell integrated the
supply and demand side of the business by using unique software
that would eliminate inventory overages.
In the CTO world, every order is custom and is built only after
the order is placed. For commercial customers, this meant that the
typical wait time from receipt of order to shipment time was around
a seven to ten days. With Smart Selection, Dell pre-builds what
they it believes will be the most popular configurations, or SKUs,
and will ship them within 24 hours. It called BTO( build to
order).Large enterprises can even get their approved custom
software image by adding another 24 hoursBecause there is BTO Dell
can save and improve many things. BTO configurations are easier to
service as well. Every CTO configuration is unique and so is a
service event
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Management By Objectives (MBO) gives reduced costsFor example
when you want to sell a product you send out an offer to many
different customers, instead of sending out 100 offers to random
customers and in the end only do business with three of them, you
can send out three offers and do business with all three.DEMAND
MANAGEMENT
Demand forecasting:Multilayer Perceptrons and Radial Basis
Function neural networks, Multivariate Adaptive Regression Splines,
Machine Learning, and Tree algorithms are tools to forecast.The
forecast can go wrong with maximum 10 % and is done 12 months in
advance.
Each 20second The system i2 technologies will collect orders,
analyze the parts of orders and check inventory of Dell and
suppliers, after that set up the orders, accessories necessarily
for suitable supplierDell s dng h thng SCM ca i2 Technologies Cn h
thng tip nhn n hng ca nh cung ng s t ng cp nht 2 gi mt ln. S d, h
thng c th lm vic nh vy nh, H thng ny c th lin kt thng ti h thng ng
dng trn nn tng ERP ca nh cung ng.. This new i2 technology was used
to coordinate the build-to-order processes from order placement to
customer support. This system tracks backlog numbers, stock status,
and supplier commitmentsFor example when you want to sell a product
you send out an offer to many different customers, instead of
sending out 100 offers to random customers and in the end only do
business with three of them, you can send out three offers and do
business with all three. This is possible if you use MBO.
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Premier Pages of Dell at http://premier.dell.com which are
custom-designed Web pages containing purchase data
DEMAND MANAGEMENT
This system also has a paperless ordering process, with the
customers existing technology configurations already captured. The
process of knowing the customer begins when the customer orders a
PC. The PC is built after the customer orders it. This means that
Dell has to have a direct relationship with the customer. The final
system that Dell is using to maximize CRM is the Dell South Africas
implementation of an enhanced CRM system with the help of IS
Partners, an information systems company. Sales, marketing,
financial and management segments benefit significantly from this
software. The Dell staff has easy access to the detailed
demographic information about customers, customer sales history and
trade relationships. Sales management can track activity within
accounts, and lapsed quotes can be acted on. The marketing
department can track customer activity, product sales, and
marketing mixes.
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CRM
Premier Pages allows:Customer: configure, price, and buy systems
at the agreed-upon price, track orders and inventory through
detailed account purchasing reports by group, geographic location,
product, average unit price, and total dollar value.The Dell staff
: know detailed demographic information about customers, customer
sales history and trade relationships. Sales management: track
activity within accounts, and lapsed quotes can be acted on. The
marketing department can track customer activity, product sales,
and marketing mixes. CRM
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CRM
Smart SelectionCatalogue Catalog in the application ,which
suggest some the best or most popular choices of Dell, ( usually
used in large companies) will be integrated with Dells ERP. This
system accepts enterprise can use systems to order from Enterprise
Procurement Application of them. Dell will manage Catalog of
enterprise. Enterprise will be repay this catalog to adjust
order
This system accepts enterprise can use systems to order from ERP
system ( ERP Procurement Application) of them. CRM of Dell will
manage Catalog of enterprise. Enterprise will be repay this catalog
to adjust order. British Airway(BA) : ) used Dell like strategy
partner Dell provided about 25000 laptop and desktop for employees
of BA. Beside, Dell provided 2 shopping online systems for BA. This
thing was Dell accept BA to watch for, purchase and check the
orders through website which Dell customize suitable with BA. In
website, BA could choose and configure laptop or desktop difference
to suit each business department. The employee of BA would be
accept their choice and order their computer suitable with their
use demand through internet system which was connected with Dells
system
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CRM
Dell's Enterprise Resource Planning (ERP) B2B E-Commerce
Solutions
Dell also uses the Internet to create a community around its
supply chain. Dells corporate portal has links to bulletin boards
where partners from around the world can exchange information about
their experiences with Dells products, logistics, and customer
service.1, "PunchOut" Xc thc cc truy cp ti catalog ca khch hng ti
Dell t trnh duyt ca khch hng cho vic mua hng. ( redifine the access
catalog of customer at Dell from customers webpage for purchase) 2,
Order Requisition Cc d liu v gi hng s c chuyn ti cho khch hng vo
thng h thng ERP ca khch hng. ( The data about cart will transfer
for customer push in ERP system of customer) 3, Electronic Purchase
Order Khch hng chuyn cho Dell cc n t hng. ( Customer give orders
for Dell) 4, PO Acknowledgement Dell phn hi li cho khch hng. ( Dell
response for customer)C s ca phng thc giao dch ny da trn s trao i d
liu in t EDI gia cc my ch ca cc bn
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CRM
Dell's Enterprise Resource Planning (ERP) B2B E-Commerce
Solutions Helps Companies Save Time & Money:Better Customer
RelationsSimplifies Purchasing ProcessNo Duplicate EntriesFewer
ErrorsImproves Accounts Receivable Turnover Ratio
Dell is also using several other information technologies,
including e-mail, EDI, video teleconferencing, electronic
procurement, computerized faxes, an intranet, DSS, a Web-based call
center, CRM
CRM
CRM
Oracle 10g Real Application Clusters running on low-cost
industry standards-based Dell Power Edge servers provides for very
cost-effective scaling, high reliability, and the ability to add
capacity by adding additional low cost Servers rather than buying
larger, more expensive proprietary Unix-based servers
CRM
CRM
1 million Dell part numbers across approximately 200 product
families, and over 2 million Bills of Materials (BOMs) per year.1.8
million Purchase Order line per year, from more than 5,000
suppliers worldwide. 3 million inventory movements daily from stock
rooms to the factory floorTransmit 3 million messages for report,
analysis and factory schedulingHandle approximately 15,000 items
per day and vendor information and contact information. SCM Oracle
database application in Dells Americas consists of approximately
3,000 database objects (functions, packages, procedures, trigger,
tables, and views). New Dell serves solution can solve, manage:
Real time and just in time (JIT)Quick deliveries, low
inventories, little or no obsolescence, and lower marketing and
administrative costs
Suppliers provide Dell with goods in a high speed No say:
Deliver 5000 to this warehouse every two weeks,Dell say: Tomorrow
morning we need 6.795 to be delivered at door A3 (of the warehouse)
by 7 am Dell holds an average of less than 6 days of inventory,
while the corresponding average of its competitors is 6 weeks
The main suppliers are required to maintain inventory near or in
Dells plantsDell has Merge Centers to store the order before
shipping.INVENTORY MANAGEMENT
Expand selling channel: have retailer after successful direct
sale model Increase in capital costs due to the 60- day finished
goods inventoryIncreased manufacturing costs by 5%, But it allowed
Dell to a gain back its 12% price premium through add-ons and
upgradesUsing customer information to leverage mass
customizationDell customers visited Dell's portable business unit
in Round Rock, Texas to voice their needs in reliability,
consistency, and the ability to customize equipment with screen
size and memory. In 1997, Dell responded to this needs with its new
Latitude CP line44CASHFLOW OPTIMIZATION
Get more interest revenueWhen customer pay money for Dell in 30
days, Dell only pay for manufacturer in 9 days, so Dell can get me
interest revenue for 21 daysDell has a lot of supplier provides
rapid delivery, competitive prices, and available computer options
to the customers.
CASHFLOW OPTIMIZATION
Use and develope itself operation, planning, management and
control information systems, application and software small and big
company.For example, Dell reduces enterprise hardcopy printing
costs by 50 percent with Lexmark solutionInternet is the best
solution for Dell to operate, management, control supply chain and
it is very cheaper than without it
CROSS-FUNCTIONAL COLLABORATIONINTERNAL COLLABORATION
BENEFITS AND LIMITATION
Competitive advantage compared with traditional rivals based
on:Disintermediation (cutting out the middleman):Enhancing customer
valueProcess and operations innovationEasily accessible
salesandcustomer services data that resulted from online
salesBENEFITS:
BENEFITS AND LIMITATION
Spend a lot of cost for technology in the beginning.Dell must be
integrated with many ERP systems, some steps must still be done
manually as data updateInformation and payment not is 100%
protected on the InternetEverything is based on forecast from the
last year so drastic changes can cause problems for Dell and their
sub-suppliers because they have customer order productionDirect
selling model is higher transportation costsLimitations:
REFERENCES
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