DELL

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DELL

• Success through e-commerce and SCM

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History Timeline

• Michael Dell established Dell computers in 1984
  at 19 with only 1000.
  
• Just four years later in 1988, Dell opens a UK
  subsidiary and launched its first IPO
  
• Dells first notebook computer was released in
  the same year the company made the fortune 500
  list 1993
  
• In 1996, Dell launched dell.com and soon become
  one of the pioneer of internet sales, selling its
  10 millionth computer the following year.
  
• From 2000 to 2003, Dell computers changed its
  name to Dell Inc., the company sells more than
  50 million per day through its website and
  reached 2 million computer sales.

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Dells Use of E-Commerce and SCM
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Dells E-Commerce Strategy

• Disintermediation
• Selling directly to the customer, cutting the
  middle man.

• Real-time production
• Seeing exactly what the customer has ordered,
  then instantly initiates production.

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Dells SCM
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Configuration

• Dells Configuration Management system manages
  over 1 million Dell part numbers across
  approximately 200 product families, and over 2
  million Bills of Materials (BOMs) per year.
• BOMs are component part numbers in which
  manufacturers use in order to know which parts to
  assemble.

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Procurement

• Dells Procurement system manages nearly 1.8
  million Purchase order lines per year, from more
  than 5,000 suppliers worldwide.
  
• To make this process more efficient, Dell uses an
  automated application which includes workflow
  approvals and vendor communication, and provides
  for services such as defective part warranty
  replacements.

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Cost

• The Cost component of this system runs mostly in
  batch mode to calculate the costs to Dell for all
  Bills of Materials. These batch jobs run weekly,
  monthly and quarterly, with each run rolling up
  total material costs.
• Del essentially drop ship their computers from
  manufacture to consumer, cutting cost
  substantially.

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Inventory

• Between all sites there are more than 3 million
  inventory movements daily from stock rooms to the
  factory floor. A corresponding 3 million messages
  are transmitted to various systems for reporting,
  analysis and factory scheduling.
• Dell ensure their inventory to reaming as low as
  possible. All computer are order and confirmed
  before any parts sorted and assembled.

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Accounts Payable

• Dells Accounts Payable handles approximately
  15,000 items per day including payments to Dell
  suppliers, invoices and receipts. Vendor
  information includes number, location, negotiated
  terms and contact information. On top of these
  order-related transactions, there are several
  batch process jobs that need to be run to rollup
  data every week, month or quarter. The longest of
  these, the end-of-quarter (EOQ) rollup, took 31
  hours under the Unix-based solution.

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Database Application

• In Dell's Americas region the SCM Oracle database
  application consists of approximately 3,000
  database objects (functions, packages,
  procedures, triggers, tables, and views). The
  same SCM system is also supported by 6 Dell
  PowerEdge 2650 application servers, 5 internally
  developed web-based applications, more than 50
  system-to-system integrations, approximately 125
  batch jobs, and about 500 user interfaces
  deployed to support the entire SCM application.

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The End