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Presented By:Chetan Kolhe Gaurav Rane Siddhi Wagh
M3123 M3142 M3155
Roadmap
Introduction To Dell
Direct Model
Valuable Web Model
Service Chain Management
I2 Technology
RFID
Lean Inventory Model
Business to Business Planning
Customer Relation Management
Dell at a Glance •
1984 - Founded by Michael Dell • • •
•
1987 - First Computer Systems Company •
• • • • •
Hardware Design Manufacturing Distribution
On-site product service .
2012 - Globally 2nd Market Share of Around 16%. Greater than $ 50 Million sales per day through the internet Yearly revenue of more than US$ 63.07 Billion With employee base of 1,13,300 Ventured – – – – – – –
In areas of storage products, Workstation systems, Online technical support, Appliance servers, Network switches, Standards based point of sale offering for retail customers, Recycling .
DELL’s Direct Model Indirect PC Value Chain
Suppliers
PC Maker
Suppliers
DELL
Distributer
Direct PC Value Chain : DELL Hardware Delivery System
Retailer, Resellers, Integrators
Final Customer
Final Customer
DELL’s Value Web Model CMs/OEMs
Logistics
System Integrators
Physical Flow (Product & Services)
Information Flow Component Suppliers
Final Customer
DELL
3rd Party HW & SW Supplies
Distributer
Repair & Support Companies
Why SCM is so Important In PC business Material Cost A/C = 74% i.e. near about $ 21 billion Improvement In SCM 0.1 %
Impact On Manufacturing Process 10 %
Change In Technology
Obsoletes Materials 1 % Per Week
Technological breakthroughs cause very short P LC
Dell’s Competitive Advantages
Dell is having one of the best SCM in the world.
90% supplies ordered online using integrated websites of supplier and Dell (B2B)
95% of suppliers situated very close to assembly plant hence coordination is easier.
Dell’s factories have only 7 hrs worth of inventory for most items whereas industry
wise it is around 10 days .
15 suppliers provide almost 85% of all supplies.
Dell gets paid by customers and then pays to its suppliers.
Dell’s Chose i2 (SCM) Software Package
Dell chose i2 Technologies for its SCM system.
i2 serves almost 70% of the SCM market.
At every 20 sec the Software
aggregates orders
Analyzes
material requirements
Compares Creates
Dell’s on-hand inventory with its suppliers inventory
a supplier bill of material to meet its order needs .
Instead of forecasting the daily supply needed Dell
receives the exact material every two hours to fulfill actual customer orders.
i2
Technology
i2 technologies software enables Dell to monitor the supply position of every part On a high level, the supply chain process is comprised of two steps:
Planning – Which involves getting the needed materials positioned at SLC’s near the appropriate Dell factories. Execution – Which involves having the right materials on and at the factory to build each customer’s order.
Delivering High Performance Storage
2 Global Centers
72 Dell Power Edge 6650 servers.
Dell uses Oracle 9i Database with Real Application Clusters (RAC)
Red Hat Linux Advanced OS
5 million transactions a day
Dell uses Dell / EMC Fibre Channel SAN (Storage Area Network)
This helps:
Store and retrieve critical information.
Helps it scale easily and thus enabling it to accommodate any increase in storage system.
Dell’s Factory Planner Solution
Manages 250 suppliers
For handling 4000 components
Calculates schedules.
Estimates surplus parts in the factory
Check supplier inventory.
Places orders, which are delivered within 90 minutes
RFID Tags
Radio Frequency Identification Devices.
RFID is a 3 part technology consisting of:
A reader
A receiver with decoder
A Transponder
Readers
Local Software & Infrastructure
Enterprise Integration
ERP
CMs/OEMs
SCM LOCAL SERVER
RFID RFID at Dell - Manufacturing
Tracking code and Computer assembly instructions are added to the tray.
This determines the specific line to which the tray should go to.
At every stage of the assembly, the tags are read by the antenna for specific instructions.
RFID at Dell - Shipping Once
assembled and tested, production information is inserted into the tags and sent to a
shipping station. At
the shipping station, the RFID tag transfers data to the control PC.
This
control PC uses this information to print the appropriate label.
Benefits of RFID Production stops have reduced dramatically. Labor
can be allocated by minimizing repetitive activities.
Returns
due to wrong shipping of products have been minimized.
DELL’s SCM Management SUPPLIERS Customer places an Order (By phone or through the Internet on www.dell.com)
Dell processes the order
REVOLVERS
Sends the order to assembly plant
2-3 days
(any one in Austin, or any other)
Plants build, test & package the product (about eight hours)
Through Configuration evaluations
Financial evaluation
(checking the feasibility of a specific technical configuration)
Credit Checking
Dell typically ship all orders (no later than five days after receipt)
CUSTOMERS
Major Instruments For Inventory Model
Revolver
Build-To-Order Model
Value Chain Program
or SLCs (Supplier Logistics Centers)
Revolvers (for “revolving” inventory)
Supplier Manufacturing
(SLC) Warehouse
Material Transfer
Factory / Merge Center
Lean Inventory Model…… 3 days of inventory - Inventory turns of 122 per year Suppliers Revolvers (SLCs) Dell Factory
Local Suppliers
Supplier Owned
Delivery
Customer
Dell Owned
B2B Model
Business model for dealing with large business entities .
Server- to- server communication over internet integrating both supplier & buyer system.
Shopping online with customer ’s ERP Procurement Application with
simultaneous up gradation.
No duplicate information entry.
OBJECTIVES
Easy process,
Less cycle time
Less errors
To quickly integrate customers who are capable today.
Rapid deployment & connectivity.
Providing hardware, software & consultation to help build a system which not only connects to Dell but even to other suppliers.
CRM in DELL
Dell maintains special DB of its top 50 global customer.
Maintains a Global Data Repository for all of its customer.
Uses DB compiled by Dun & Bradstreet for 500 global companies for selectively targeting sales efforts .
Real Time CRM
When a customer calls in for placing order then customer service links directly to Dell’s Real Time inventory .
Depending
on latest inventory data Dell can :
Push Available inventory at lower cost.
Promote latest/new products at higher cost.
Provide add-on products with discounts .
Suppliers Selection And Evaluation SELECTION i. ii. iii. iv.
Quality Price Delivery Response to feedback.
EVALUATION 1. 2. 3. 4. 5.
Cost Delivery Availability of technology Velocity of inventory Ways in which they did business with dell over the internet.
MIS In DELL
Direct Model Valuable Web Model Service Chain Management I2 Technology RFID Lean Inventory Model Business to Business Planning Customer Relation Management
