Marketing Audit Approach
...great opportunities and alternatives in the marketplace for consumers and business organizations alike. Competitive demands have led to sourcing and manufacturing on a global scale, resulting in a significant rise in product offerings. As businesses grow more multifaceted, so as their supply chains. This paper will attempt to describe Dell's supply chain as one of the most successful and leading supply chain in the personal computer industry, including its processes and material flow. Comparison and contrast with its competitors, recommendations for process improvement and its ethical considerations will be discussed.
Existing Supply Chain Process
Dells' business concept based on direct-sales and build- to-order has achieved superior performance in the PC industry in terms of inventory turnover, reduced overhead, cash conversion and return on investment. Building PC to order means that Dell must have parts and components on hand to build a wide array of possible configurations with little advance notice. In order to fill orders quickly, Dell must have an excellent manufacturing and logistics capabilities supported by information systems that enable it to substitute information for inventory.
Order–taking
The supply chain process begins when orders come in, mostly from internet/intranet (90%) using the built-to-order model. Integrated with direct to consumer, the system allows consumers to decide what features are needed for their computers before product manufacturing is completed. Dell offer standard models configured by the customers themselves as they generate the orders. It is called built-to-order as opposed to built- to-stock that requires inventory. Built-to-order significantly lowers financing costs and increases customer satisfaction for Dell's chosen market segment. Dell records an order, clears credit (as they take no chances) and...
View Full Essay
