According to Chopra and Meindl, Dell’s supply chain has been very successful because “The online channel has proved very effective for the sale of computer hardware and by 2009 represented about half the sales in this category. After more than a decade of tremendous success selling its PCs only online, Dell started to sell PCs through retail stores such as Wal-Mart in 2007.” Dell’s online supply chain manages through supplier, Dell, and customer. In addition to the retail supply chain, Dell manages through the supplier, Dell, retail store, and customer. Therefore, they are hitting their targets on every end of the market share by being successful in every way.
The main supply chain challenges that Dell is now facing is the low-cost hardware. Chopra and Meindl stated, “For low-cost, standardized hardware, however, the online channel is ...view middle of the document...
In fact, if I was a part of their supply chain team I would continue to keep doing the right things. Why change something if it’s not broken.
Looking at our textbook in table 4-10 it appears the efficient funds transfer, inventory, facilities, and customer experience are significantly high for customized hardware. Although, Dell does very well in the area of impact for standard low-cost hardware with positive remarks such as efficient funds transfer and direct sales. However, Dell needs to focus on the negative remarks in response time, and transportation for standard low-cost hardware.
In fact, I agree with Dell selling their low-value standardized hardware. Chopra and Meindl stated, “Dell has also started using the tailored approach with high-value customized hardware such as servers built to order while low-value standardized hardware is produced in low cost countries and sold through retail stores such as Wal-Mart.” Therefore, it appears that this approach will work very well and be very strong in the market offering what the consumer wants and needs. Just remember that any consumer can get their customized computer hardware online and built closely to what they need.
Moreover, I have touched on why Dell has been very successful as a company while doing a phenomenal job managing their supply chain management. In addition, I have provided what challenges Dell has faced, and I have shared my opinion on my recommendation to solve the issue. In the end, Dell will be successful in just about every they do as long as they continue to have a strong supply chain management.
To add more fuel to the fire, I have three computers in my house that are all Dell’s hardware. I am a very happy customer and I will continue to buy from Dell as long as they keep innovating great technology.
Chopra, S., & Meindl, P. (2012). Supply chain management: Strategy, planning, and operation (5th ed.). Upper Saddle River, NJ: Prentice-Hall.