Dell's Value Chain

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1) Dell has an accurate “pull data” which uses the point of sales information so that each member of the chain can schedule effectively, and also uses computer assisted ordering. This implies using POS systems that collect sales data and then adjusting that data for market factors, inventory on hand, and outstanding orders. Then a net order is sent directly to the supplier who is responsible for maintaining the finished goods inventory. Dell is a well known and respected company worldwide that offers several services and procedures for it to survive and to remain one of the top companies that manufacture computers. Now to discuss further about what steps Dell took to develop an exceptional supply chain in its direct sales and build-to-order model, I’m going to present the following Info: Dell used the Keiretsu network which made their suppliers become part of the company coalition; it links manufacturers, suppliers, distributors, & lenders. The Keiretsu members provide technical expertise and stable quality production to the manufacturer. The company also provides the develop software linkages to suppliers which makes their materials of production on constant update without going through tough times to get what they need for their products to be manufactured, and it can be called as the Virtual companies, which means a company that rely on a variety of supplier relationships to provide services on demand. Dell is a company that’s known to be linked by technology, as it provides the ability for the suppliers to view orders for components they produce as well as current levels of inventory at dell., this allows suppliers to plan based on actual end customer demand. 2) Dell exploited the direct sales model to improve operations performance, and this is by using and maintaining the following: Dell provides the opportunity for the

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