...Dell’s Supply Chain Management Strategy Build-to-order model, Dell, Direct model, PC Manufacturing, SCM, Supply Chain Case Study Abstract The focus of this case study is the supply chain management practices of Dell. Dell has been following its unique ‘direct build-to-order’ sales model for more than 20 years. Customers can plan their own configuration and place orders directly with the company via the phone or its Web site. Over the years, Dell’s supply chain efficiencies and direct sales gave it a competitive advantage. Can Dell regain its market leader position from HP? In 2006 however, Dell faced several problems. Many customers complained about long delays in supplies. Recall of Sony battery cells in its laptops brought undesirable media hype to the company. Increasing discontent of customers led to a slowdown in sales. Consequently, Dell lost its market leadership to Hewlett-Packard Co. (HP). Industry analysts felt that, with Dell’s competitors also improving their supply chains and matching Dell’s direct model, the company had been losing its competitive edge. Dell will have to bear additional costs with its foray into retail distribution thereby minimizing its cost advantage. Besides, profit margins of Dell will drop further since it will have to offer incentives to compete with HP in retail stores. Though Dell spruced up its product design and range but Apple is clearly far ahead of it. Many experts feel that such new initiatives will only distract Dell from its...
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...accompanied by a 21% increase in profit. All told, Dell expects to reach $40 billion for the year, a substantial improvement on the $32 billion in sales it had last year. The secret to Dell’s success is really no secret at all — the company has said all along that its direct model works because of a single-minded adherence to supply chain excellence. The company manufactures more than 50,000 computers every day, but carries only three to four days’ worth of inventory, when many of its competitors carry between 20-30 days of inventory. However, Dell isn’t exactly sitting on its laurels. “We’re on the tip of the iceberg,” says Dick Hunter, vice president, Americas Manufacturing Operation. “Most people think that Dell has reached the ultimate goal in supply chain management — an inventory of three days. We disagree; every day we work to bring that number down. Our current goal is to get down to two days. Long term, I think we can get even lower.” The key to that will be transition management. “We sell what we have and we don’t sell what we don’t have,” explains Hunter. “We don’t tolerate excess inventory. We do whatever it takes to move inventory, even if it means creating demand. Working through our direct model and having such tight control of the supply chain allows us this significant competitive advantage. The company keeps what it calls a supplier report card on every supplier, and tracks each supplier’s performance against a set of metrics maintained by Dell. Against the...
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...Transportation & Logistics Transportation & Logistics 2030 Volume 1: How will supply chains evolve in an energy-constrained, low-carbon world? PricewaterhouseCoopers 1 Acknowledgements The editorial board of this issue of our Transportation & Logistics 2030 series consisted of the following individuals: PricewaterhouseCoopers European Business School Supply Chain Management Institute Dr. Heiko von der Gracht +49 611 3601 8800 vdgracht@supplyinstitute.org Tobias Gnatzy +49 611 3601 8800 gnatzy@supplyinstitute.org Prof. Dr. Inga-Lena Darkow +49 611 3601 8800 darkow@supplyinstitute.org Klaus-Dieter Ruske +49 211 981 2877 klaus-dieter.ruske@de.pwc.com Dr. Peter Kauschke +49 211 981 2167 peter.kauschke@de.pwc.com Julia Reuter +49 211 981 2095 julia.reuter@de.pwc.com Dr. Elizabeth Montgomery +49 89 5790 5159 elizabeth.montgomery@de.pwc.com We would like to thank the panellists who took part in the Delphi survey that underpins this report. For confidentiality reasons their names will not be mentioned. Special thanks go to Tom Gorman, CEO of CHEP EMEA and Harry Hohmeister, CEO of Swiss International Air Lines, who took the time to share their thoughts and insights with us. Finally, we would like to express our appreciation for the expertise provided by the below listed individuals: Jenny Bailey, Andreas Baur, Nicholas Bell, Thomas Brüderlin, Giorgio Elefante, Richard Gane, Martha Elena Gonzalez, Susanne Klages, Christian Knechtel, Socrates LeptosBourgi, Alexander...
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...retailer of Scandinavian designed furniture and accessories founded in Sweden in 1943. It has operations in 44 countries across Europe, North America, Asia and Australia and is headquartered in Delft, Netherlands. It employs 13000 people and sells 9500 home furnishing products in 298 retail stores worldwide. IKEA recorded revenues of $36101.5 million during the financial year ended in August 2012, an increase of 9.8% over 2011. IKEA offers a range of furniture for living rooms, bedrooms, kitchens and children’s rooms. Its emphasis on providing home furnishing products at low prices has been the main reason for the widespread customer acceptance of its products which, in turn, has facilitated its growth in various geographies. The company designs, manufactures, transports, sells and assembles its merchandise to minimize cost at each level. To help keep prices low, the group ensures that production equipment and raw materials are used efficiently. Customer involvement also contributes to low prices. IKEA relies on customers to choose, collect, transport and assemble products themselves and offers home delivery services only at an additional cost. IKEA’s supply chain has a global spread with growing sales and purchasing in all major regions of the world with 298 stores globally. All IKEA retail stores have customer restaurants that offer a choice of local dishes. Most retail stores also have a food shop and the food range...
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...PAMANTASAN NG LUNGSOD NG MAYNILA (University of the City of Manila) Intramuros, Manila COLLEGE OF BUSINESS AND MANAGEMENT In Partial Fulfilment of the Requirement for the Degree of Bachelor of Science in Business Administration Major in Human Resource and Operations Management, Marketing Management Submitted to: Prof. Christopher Malanum Submitted by: Acuna, Charzel R. Alcoran, Rachelle Anne K. Aquino, Patricia Mae Ann E. AUGUST 2015 Part 1: Channels of Distributions Channels of Distribution Few producers sell their goods directly to final users. Instead, most use intermediaries to bring their products to market. According to Philip Kotler, distribution channel is a set of interdependent organizations that help make a product or service available for use or consumptions by consumer or business user. Here are some definitions from different websites: Goods and services often pass to consumers through multiple channels. While increasing the number of ways in which a consumer can find a good has the potential to increase sales, it also creates a complex system that can make distribution management difficult. In addition, the longer the distribution channel the less profit a product manufacturer might get from the sale. (Distribution Channel Definition| Investopedia http://www.investopedia.com/terms/d/distribution-channel.asp#ixzz3jhyoJ8Pg) The path through which goods and services travel from the vendor to the consumer or payments for those products travel...
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...D’ambrosio, reckitt Benckiser Stuart Dickson, GlaxoSmithKline priscilla Donegan, Capgemini Xavier Franco, Johnson & Johnson Massimo Frediani, nestlé Geoff Frodsham, loblaw Companies ltd Thierry Gueguen, Groupe Danone ruediger hagedorn, Global Commerce initiative loes heinemans, Capgemini Kees Jacobs, Capgemini Jeroen Janssen lok, Sara lee international peter Jordan, formerly Kraft Foods Bill lewis, SCa packaging luis Montenegro, British american Tobacco lara Moutin, unilever Oliver neubert, Freudenberg household products Ben pivar, Capgemini Jochen rackebrandt, Kraft Foods rich rapuano, Black & Decker Katrin recke, aiM/eCr europe Sabine ritter, Global Commerce initiative audrey rossman, procter & Gamble andreas ruthenschröer, MGl MeTrO Group logistics Gmbh Stephan Sielaff, Symrise Tony Spiliotopoulos, l’Oreal uS Tibor Szandtner, Capgemini Chrys Tarvin, Wal-Mart Stores, inc. ruud van der pluijm, royal ahold ingeborg Veelenturf, Kellogg europe Tony Vendrig, royal ahold ard Jan Vethman, Capgemini Olivier Vidal, l’Oreal Jos Visee, philips as well as other members of the GCi Steering Group who have contributed to the report, Jesse van Muylwijck for his cartoons, and the Chicago and netherlands accelerated Solutions environment (aSe) facilitation teams from Capgemini for their support during the aSe events. Xavier Derycke, Carrefour roland Dachs, Crown europe Co-Chairmen of the GCI Future Supply Chain Work Team © May 2008 Global Commerce initiative, Capgemini. all rights reserved...
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...Lucerne University of Applied Sciences and Arts School of Art & Design BA Design Management, International BACHELOR THESIS SUSTAINABLE PACKAGING Sustainable packaging A comprehensive approach towards sustainable packaging with a focus on primary packaging of food and drinks Lucerne, May 2010 CLAUDIO BECKER | BA DESIGN MANAGEMENT, INTERNATIONAL Lucerne University of Applied Sciences and Arts School of Art & Design BA Design Management, International BACHELOR THESIS SUSTAINABLE PACKAGING DESIGN MANAGEMENT ENABLES COMPANIES TO DEVELOP NEW BUSINESS DIMENSIONS THAT DRIVE A COMPREHENSIVE APPROACH TOWARDS SUSTAINABLE PACKAGING Lucerne, May 2010 Tutor EMETM Daniel Aeschbacher, Tutor and Faculty Member, Design Management, International Claudio Becker Baselstrasse 47, CH - 6003 Luzern Cell-phone: 0041 78 659 59 36 E-mail: info@claudio-becker.ch CLAUDIO BECKER | BA DESIGN MANAGEMENT, INTERNATIONAL TABLE OF CONTENTS Abstract 1. Introduction 2. Reference to design management 3. State of the Art 3.1 The context 3.2 Introduction to packaging 3.2.1 The fundamentals of packaging 3.2.2 The packaging design process 3.3 Sustainable packaging 3.3.1 What is sustainability? 3.3.2 What is sustainable packaging? 3.3.3 Materials 3.3.4 Barriers & drivers 3.4 Practise examples 3.4.1 Company overview 3.4.2 Comparison 4. Analysis / Synthesis 4.1 Insights 4.2 Sustainable packaging criteria 4.3 Recommendations 4.4 Conclusion Bibliography Books Reports...
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...Corporate Carbon Strategies Threats and opportunities arising from the new energy imperative Reference Code: BI00036-019 Publication Date: March 2011 1 About the authors Professor Merlin Stone Merlin is Head of Research at The Customer Framework. He is author or co-author of many articles and thirty books and also on the editorial advisory boards of several academic journals. He has a first class honors degree and doctorate in economics from Sussex University, UK. In parallel to his business career, he has also pursued a full academic career, holding senior posts at various universities. He is now a visiting professor at De Montfort, Oxford Brookes and Portsmouth Universities, teaches economics for the Open University and marketing for Exeter University. Jane Fae Ozimek The author is a writer and researcher in the areas of IT, Business and the Law. Jane is currently editor of the Journal of Database Marketing and has previously published works on the use of statistics in business and Marketing Resource Management. Recent research papers include publications on the misuse of security protocols by major corporations, and a re-evaluation of the Loyalty Ladder concept in marketing theory. Jane was also co-author of the recently published Carbon Trading and the Effect of the Copenhagen Agreement (published by Business Insights, 2010). 2 Disclaimer Copyright © 2011 Business Insights Ltd This report is published by Business Insights (the Publisher). This report...
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...Infrastructure Design Green Maturity Model for Virtualization Application Patterns for Green IT Architecture Journal Profile: Udi Dahan Profiling Energy Usage for Efficient Consumption Project Genome: Wireless Sensor Network for Data Center Cooling Green IT in Practice: SQL Server Consolidation in Microsoft IT Contents Foreword by Diego Dagum 1 18 Environmentally Sustainable Infrastructure Design by Lewis Curtis A comprehensive understanding of environmental sustainability needs for IT infrastructure system design. 2 Green Maturity Model for Virtualization by Kevin Francis and Peter Richardson The authors present a study on the maturity of virtualization practices and offer a sustainability roadmap for organizations planning a green agenda. 9 Application Patterns for Green IT by Dan Rogers and Ulrich Homann A complete analysis on power-efficient applications design, considering tools that help the architect achieve scalability without deriving in energy waste. 16 Architecture Journal Profile: Udi Dahan For this issue’s interview, we catch up with Udi Dahan, noted expert on SOA and .NET development, and four-time Microsoft MVP. 22 Profiling Energy Usage for Efficient Consumption by Rajesh Chheda, Dan Shookowsky, Steve Stefanovich, and Joe Toscano This article suggests that tracking energy consumption at every level will become the factor of success for green architecture practitioners. 24 Project Genome: Wireless Sensor Network for Data...
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...Infrastructure Design Green Maturity Model for Virtualization Application Patterns for Green IT Architecture Journal Profile: Udi Dahan Profiling Energy Usage for Efficient Consumption Project Genome: Wireless Sensor Network for Data Center Cooling Green IT in Practice: SQL Server Consolidation in Microsoft IT Contents Foreword by Diego Dagum 1 18 Environmentally Sustainable Infrastructure Design by Lewis Curtis A comprehensive understanding of environmental sustainability needs for IT infrastructure system design. 2 Green Maturity Model for Virtualization by Kevin Francis and Peter Richardson The authors present a study on the maturity of virtualization practices and offer a sustainability roadmap for organizations planning a green agenda. 9 Application Patterns for Green IT by Dan Rogers and Ulrich Homann A complete analysis on power-efficient applications design, considering tools that help the architect achieve scalability without deriving in energy waste. 16 Architecture Journal Profile: Udi Dahan For this issue’s interview, we catch up with Udi Dahan, noted expert on SOA and .NET development, and four-time Microsoft MVP. 22 Profiling Energy Usage for Efficient Consumption by Rajesh Chheda, Dan Shookowsky, Steve Stefanovich, and Joe Toscano This article suggests that tracking energy consumption at every level will become the factor of success for green architecture practitioners. 24 Project Genome: Wireless Sensor Network for Data...
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...recent times, a consensus has emerged that environmental issues induced by industrial development should be addressed throughout the supply chain. This had led to the emergence of the concept suggested to as Green Supply Chain Management (GSCM). This research provided a concise background and challenges of green supply chain through applying qualitative analysis on potential implementation in existing literature. This research was use secondary data to analyze a single case study, which is a case study of Walmart GSCM. Data was collected through a quality source by process of evaluating the information sources. The research analysis have shown seven strategies that used at Walmart: Identifying goals, metrics, and new technologies, Providing network partner assistance to suppliers, Certifying environmentally sustainable products, Incentive for green products, Consolidating direct suppliers, Developing a sustainable standard, and Zero waste. In a conclusion, it was possible to understand that GSCM is one of the emerging approaches for retail industry. This approach had help the company differentiates from its competition and made its supply chain more efficient. This paper was useful in providing suggestions to the retail industry and other industries to either modify the GSCM strategy adopted within organization in order to achieve the required target, or identify the most suitable GSCM strategy to be implemented. Keywords: Supply Chain Management, Retail industry, Green Supply...
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...9 -7 1 2 -4 4 9 REV: JUNE 1, 2012 FOREST L. REINHARDT RAMON CASADESUS-MASANELL FREDERIK NELLEMANN Maersk Line and the Future of Container Shipping There is a difference between just moving a container and moving it in the most sustainable, easy, and reliable way. And that difference is worth something to our customers. — Morten Engelstoft, Chief Operating Officer, Maersk Line, 2012 It was a cold February afternoon in 2012 as Søren Skou looked out the window of his office across the Copenhagen waterfront. Skou had just recently been promoted to become CEO of Maersk Line, the world’s largest container shipping company, and the flagship company of the Danish conglomerate A.P. Moller-Maersk Group. He was taking the reins at a difficult time: the sluggish global economy had severely depressed container rates, while fuel prices were still at record levels. On some trade routes, the company—like its competitors—wasn’t even meeting the costs of deploying its large and expensive container ships. Skou was confident that the company would pull through. After all, it had recently completed a successful turnaround following the Maersk Line’s first ever annual loss in 2009 and the Group benefited from a diverse holding of activities, which included an oil and gas business. However, Skou needed to assess whether Maersk Line was headed in the right direction, both to be able to compete in this slower market but also once the economy, and global trade, picked up. In 2010...
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...Green Supply Chain Management : Logistics and Distribution Prabhakar Ravishankar White Paper Important Confidentiality Notice This document is disclosed only to the recipient to whom this document is addressed to and is pursuant to a relationship of confidentiality under which the recipient has obligations to confidentiality. This document constitutes confidential information and contains proprietary information belonging to MphasiS Limited. The confidential information is to be used by the recipient only for the purpose for which this document is supplied. The recipient must obtain MphasiS Limiteds written consent before the recipient or any other person acting on its behalf, communicate any information on the contents or the subject matter of this document or part thereof to any third party. The third party to whom the communication is made includes individual, firm or company, or an employee or employees of such a firm and company. The recipient, by its receipt of this document, acknowledges that this document is confidential information and contains proprietary information belonging to MphasiS Limited and further acknowledges its obligation to comply with the provisions of this notice. The contents of this document are provided in commercial confidence, solely for the purpose of evaluating whether the contract should be awarded to MphasiS. The information contained in this document represents the views and opinions of MphasiS on the issues discussed, as of the date...
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...CSR Report < Previous View 2012 Cisco CSR Report Website How to Use This Report We Welcome Your Feedback C1 Supply Chain Overview Our Supply Chain Embedding Sustainability in Core Business Processes Partnering with Suppliers to Improve Performance and Build Capability Working with Industry Groups Watch the Video! Supply Chain We expect our suppliers to meet the same high standards on ethics, labor rights, health and safety, and the environment that we apply to our own people and operations. Cisco works closely with suppliers to manage these sustainability issues and improve their performance throughout the supply chain and at every stage of the lifecycle of our products. We look to use our relationships with our network of suppliers and peer companies to multiply the impact we can have on sustainability in the information and communications technology (ICT) supply chain. 2012 Cisco CSR Report < Previous View 2012 Cisco CSR Report Website How to Use This Report We Welcome Your Feedback C2 Supply Chain > Overview Our Supply Chain Embedding Sustainability in Core Business Processes Partnering with Suppliers to Improve Performance and Build Capability Working with Industry Groups Overview These first five pages give readers an overview of Cisco’s objectives, key challenges, progress, and performance with regard to Supply Chain. We have used this overview as part of our Executive Summary, which can be downloaded here. We focus our...
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...large amount of participants, variety of processes, dynamics and uncertainty in materials and information flow prove that the supply chain as a complex system in which coordination is considered as a key element for success. The lack of supply chain coordination between the participants results in a “Bullwhip Effect”. This report analyzes different techniques followed by Wal-Mart to improve coordination for reducing the bullwhip effect. Wal-Mart’s use of CPFR, VMI to mitigate the bullwhip effect by improving information accuracy is explained and the drawbacks of those systems are discussed. Wal-Mart’s revolutionary use of cross-docking and vendor consolidation programs to achieve coordination by improving operational efficiency is analyzed. Based on these analyses the requirement for efficient coordination and the important...
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