...director of Supply Chain Systems, I have decided to implement portions of the new supply chain strategy of Virtual Integration and strategies from companies like Dell. Although there are several key differences between the companies, Dell’s virtual integration strategy can be applied to Ford’s supply chain operation. A modification of the virtual integration system currently used by Dell could be applied to Ford’s dependent supplier base, distribution system, dealerships and divisions. Special care will need to be taken to address the unique dependency of our custom Tier 1 supplier. The management of lower tier suppliers of general or generic components would be more effectively suited by the standard procedures used by Dell. If we at Ford could find a solution to the obstacles of virtual integration, it could make our supply chain run smoothly with less bottlenecking, inventory, and better overall performance. Managers could overcome the complex and error-prone manual process of forecasting and procuring parts which would result in reduced OTD lessen costs and enhance customer satisfaction. ISSUE IDENTIFICATION Senior Executives have asked how Ford should use the emerging information technologies and ideas from new high-tech industries to change the way we interact with Suppliers. We must find ways to improve the Supply Chain management and to increase shareholder value and Supply Chain responsiveness. Specifically we are looking at how Dell manages their Supply Chain...
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...As director of Supply Chain Systems, I have decided to implement some of the key components of the new supply chain strategy of Virtual Integration from the companies like Dell Computer Corporation. Though there are several differences between the companies, Dell’s virtual integration strategy can be applied to Ford’s supply chain operation. A modified Virtual Integration System can be applied to Ford’s dependent supplied base, distribution system and dealerships. Special care needs to be taken to address the issue of unique dependency of our Tier 1 suppliers. The management of Tier 2 and Tier 3 suppliers would be more suited by the standard procedures used by Dell. If we could find a solution to all the obstacles of virtual integration at Ford, it could make our supply chain run smoothly with the best inventory solutions and overall performance. Managers will be able to overcome the complex and faulty manual process of forecasting and procuring parts which result in reduced OTD, thus decreasing the costs and enhancing customer satisfaction. Issues Identification • Inaccurate forecasting • Supply chain based on outsourcing dependent on large supplier network • Ineffective communication in supplier network • Long Cycle Times • Dealer network structure • Following the traditional “Push” model Environment and Root Cause Analysis Ford’s Supply Chain is based on Vertical Integration and Outsourcing strategy, this has created a complex supply chain, increasing inventory...
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...GROUP ASSIGNMENT- CASE STUDY INTRODUCTION Michael Dell founded the Dell Computers in 1984 in USA and by 2001 the company became the world’s largest personal computer vendor, continuing to gain market share and post profits in an industry struggling with slumping sales and billions of dollars in losses. Dell sells 90% of its PCs directly to the final customer, largely bypassing the reseller channel that accounts for most of the world’s PC sales. This direct customer relationship is a key to Dell’s business model, and provides distinct advantages over the indirect sales model. Dell’s direct relationship with the customer allows it to tailor its offerings to customer needs, offer add-on products and services, and use the Internet to offer a variety of customer services. In addition, Dell’s PCs are built to customers’ specifications upon receipt of an order, giving Dell additional advantages over indirect PC vendors who must try to forecast demand and ship products based on those forecasts. Dell’s direct sales and build-to-order model has achieved superior performance in the PC industry in terms of inventory turnover, reduced overhead, cash conversion, and return on investment. Dell’s business model is simple in concept. Building PCs 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 has excellent manufacturing and logistics capabilities supported by...
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...managing flows of inventories. Inventory management is a criterion which is used to look after the flow of products and services in and out of an organization A company can operate with just one way of managing inventory or they can go for combination of inventory management methods depends upon the nature and amount of inventories. Businesses utilize inventory management strategies to create invoices and purchase orders, generate receipts and control inventory-related accounting. Just in time is a popular method of inventory control and management for a manufacturing concern. The concept behind this type of inventory control is that, the delivery of the inventory happens at the time of production and not earlier. It also delivers the exact amount of inventory that can be used for production, not more. JIT very much depend on the supply chain of a company because non availability of inventory will affect the process of production very badly. Some of the advantages of using just in time delivery are the following * Low warehousing costs. Since the inventory is not stored in Just in Time method, the expenditures on maintaining the inventory in the warehouse of the company can be eliminated. * Effective and efficient Supply Chain Management This method will make sure that the company has an efficient and effective supply chain management. Without a robust supply chain just in time delivery would not be possible. An efficient supply chain can reduce the cost of manufacturing...
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...Dell, Inc. BUS630- Managerial Accounting Dr. Jared Eutsler August 10, 2012 * What is Dell’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion? Dell’s strategy “combines its direct customer model with a highly efficient manufacturing and supply chain management organization, and an emphasis on standards-based technology” (Dell, 2005, p. 1). The purpose of Dell’s multifaceted strategy is to be efficient when it comes to manufacturing products and effective when it comes to providing services. Dell feels that their business strategy allows them to “provide customers with superior value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use” (Dell, 2005, p. 1). Dell also focuses on developing new technologies that incorporate consumer-desired features and capabilities at a highly competitive price. Utilizing feedback from customers, Dell engineers “work with a global network of technology companies to architect new system designs, influence the direction of future development, and integrate new technologies into Dell’s products [which allows them to] quickly and efficiently deliver new products and services to the market” (Dell, 2005, p. 2). Dell relies on a combination of customer intimacy, operational excellence, and product...
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...organization. We have selected “Dell” as the organization and we wish to study the planning and implementation of Dell’s Strategies. Report starts from briefing the background of this chosen organization. Moreover, some of the external factors have been discussed by presenting a view of SWOT analysis of ‘Dell’. Further part of the report will illustrate the review of already existing business plan and strategy of that enterprise. Furthermore, listed are the factors affecting this strategic plan, in which vision & mission, objectives and other measures have been taken into account. Despite their strengths Dell has many challenges it needs to overcome right from the increase in the competitors to a dire need in breakthrough innovation which is essential. With the increase in innovation in the market the computer systems are becoming outdated, so Dell should constantly come out with new products. Also, People need the quality products at low price which was Dell’s strength due to its customized solution, but now its competitors are coming up with products in same price range. To identify these business concerns, it has been noted that the company has a sound and dynamic consideration while managing its product portfolio as well as conducting its target markets. This has helped the company to stabilize its financial status through sales generation and cost reduction. 2. Introduction Dell is a US based Computer Technology company which deals in hardware sales and...
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...Book Reference: Simchi-Levi, D., Kaminsky, P., and Simchi-Levi, E., & (2008). Designing and managing the supply chain: Concepts, strategies, and cases (3rd edition). United-States: McGraw-Hill. Excel sheet: Student Name: Shaheen Sardar Department: Industrial and Management Engineering, Hanyang University, South Korea. Home Work 1 Chapter 1: Introduction to Supply Chain Management Problem 1: Consider the supply chain for a domestic automobile. a. What are the components of the supply chain for the automobile? b. What are the different firms involved in the supply chain? c. What are the objectives of these firms? d. Provide examples of conflicting objectives in this supply chain. e. What are the risks that rare or unexpected events pose to this supply chain? Answer: a. The supply chain for a car typically includes the following components:: 1. Suppliers for raw materials 2. Suppliers for parts and subsystems 3. Automobile manufacturer (Ford, in the example). Within a company, there are also different departments, which constitute the internal supply chain: i. Purchasing and material handling ii. Manufacturing iii. Marketing, etc. 4. Transportation providers 5. Automobile dealers b. Many firms are involved in the supply chain. 6. Raw material suppliers. For instance, suppliers for steel, rubber, plastics, etc. 7. Parts...
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...proyectos empresariales(PDGPE) Vocal:Francesc Tiñena Salvañà Compresion de datos e imagen (CDI) Secretari:Jose M. Cabré Garcia Empresa y entorno economico(EEE) QUALIFICACIÓ Qualificació numèrica: Qualificació descriptiva: Data: INDEX CHAPTER 1: INTRODUCTION CHAPTER 2: VERTICAL INTEGRATION 2.1. VERTICAL INTEGRATION 2.2: THE THREE A’S OF A SUPPLY CHAIN EXCELLENCE 2.2.1: AGILITY 2.2.2: ADAPTABILITY 2.2.3: ALIGNMENT 2.3: PORTER’S ANALYSIS 2.4: EXAMPLES: WAL-MART AND DELL CHAPTER 3: THE SYSTEM LOCK-IN 3.1 THE DELTA MODEL 3.2: THE SYSTEM LOCK-IN 3.3: EXAMPLE: FORD MOTOR CO 3.3.1: FORD MOTOR CO LOCK-IN CHAPTER 4 : ZARA 4.1 ZARA’S HISTORY 4.2 BUSINESS MODEL 4.2.1: PORTER’S ANALYSIS ON ZARA 4.2.2 PRODUCT LIFE CYCLE CURVE 7 9 9 13 15 16 17 19 30 36 36 39 41 42 45 45 47 47 49 1 4.2.3: KEY FACTORS OF SUCCESS 4.2.4: STRATEGIC DRAWBACKS 4.2.5: LOGISTICS AND SUPPLY CHAIN 4.2.6: STRATEGY 4.2.7: OPPORTUNITIES 4.3 THE MATHEMATICAL MODEL 4.4 FINANCIAL DATA 4.5 COMPETITORS CHAPTER 5 : BENETTON 5.1 BENETTON’S HISTORY 5.2 BUSINESS MODEL 5.2.1: STRENGHTS 5.2.2: WEAKNESSES 5.2.3:PARTNERSHIP 5.2.4: INTEGRATION 5.2.5: SUPPLY CHAIN HISTORY 5.2.6: NETWORKED MANUFACTURING 5.2.7: POSTPONEMENT IN DYEING 5.3: INFORMATION SYSTEM 5.3.1: THE SHOP 2 50 51 54 59 65 66 71 73 76 76 83 83 84 88 90 91 93 94 96 99 5.4: FINANCIAL DATA...
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...chairman and CEO of IBM Company is Samuel J Palmisano. IBM manufactures and sells computer hardware and software, and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology. IBM has been well known as one of the world's largest computer companies and systems integrators. With over 388,000 employees worldwide, IBM is one of the largest and most profitable information technology employers in the world. IBM holds more patents than any other U.S. based Technology Company and has eight research laboratories worldwide. The company has scientists, engineers, consultants, and sales professionals in over 170 countries. IBM employees have earned Five Nobel Prizes, four Turing Awards, five National Medals of Technology, and five National Medals of Science. IBM competitors IBM's main competitors are Hewlett-Packard Company (HPQ) and Dell (DELL) but each of these companies has a different focus area. Dell makes most of its money on PC and server hardware, while Hewlett-Packard is more diversified as the leader in PCs and Imaging & Printing as well as offering IT services. Since IBM relies heavily on its Software and Services segment, it mainly competes with Hewlett-Packard in the servers and IT services markets and with Dell in the servers and software markets. Although falling behind HP in terms of revenue in 2009, IBM is the leader in servers, IT services, and software. IBM leads HP and Dell in all measures of...
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...Taiwan-based smartphone manufacturing company engaged in design, development, manufacturing and sales of mobile computers, personal digital assistant phones, touch phones and smart phones and offers its products in Europe, Asia pacific, North and Latin America, Africa and Middle East (Bloomberg, 2010). The company has gained a reputation in terms of innovation related to the features of their products as well as their design The Evolution of HTC HTC was founded in 1997 by three business people and technology enthusiasts Cher Wang, HT Cho and Peter Chou. The founders took the roles of Chairwoman, Director of Board and Chairman of HTC Foundation, and President and CEO respectively. At the initial period of business HTC was mainly involved in partnerships with companies like Compaq, Dell and HP designing and building PDAs (personal digital assistants) for them. The most innovative and acclaimed products of these brands HTC was closely involved in include Compaq iPAQ, Treo 650, O2 XDA, and Orange SPV (Hi, we’re HTC, 2010) The company was introduced to the public as an independent brand starting from June 2006, and manufactured its first own brand product HTC Touch, which is claimed to be by the company a first finger-friendly touch-screen smartphone in June 2007. Today HTC boasts with its popular products as Touch Diamond, Hero, HD2, HD Legend, and Desire, and has been ranked by Business Week as the second best performing technology company in Asia in 2007, and third place in...
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...A. Supply Chain Strategy There are three main types of supply chain strategies vertical integration, Keiretsu networks and virtual companies. Vertical integration develops the ability to produce goods and services previously purchased or to actually buy a supplier or distributor it can be forward or backward integration. Backward integration suggests a firm purchase its suppliers. Forward integration in the other hand, on the other hand, suggests that a manufacturer of components make the finished product. Vertical integration may provide opportunities for cost reduction, quality adherence and timely delivery. “Doing everything” is extremely difficult, risky and costly. It is not recommended for this group even though the talent is available. Lets first analyze the other strategies. Keiretsu networks are part collaboration, part purchasing from a few suppliers. The manufacturers are of then financial supporters through ownership or loans. The supplier becomes part of the company coalition known as keiretsu. Members of the keiretsu can also have suppliers farther down the chain, making even second and third-tier supplier’s part of the coalition. Even though this strategy is less risky it is one that the management is not accustomed to and there is still another strategy we haven’t discussed. The investors have the team and the managerial experience but do not have experience managing the type and scope of operation that requires manufacturing and supply chain...
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...INNOVATION AGILITY DECISIONS INVESTMENT SUPPLY Want to Innovate? The supply chain discipline is replete with rules that most managers live by. But in certain cases, true innovation and breakthroughs come only when those conventional rules are broken. By clearly understanding the nature of the rules and the details of your supply chain, you can better determine where and when rule-breaking makes sense. By Robert Sabath and Richard Sherman Robert Sabath and Richard Sherman are Supply Chain Discipline Experts at Trissential, a management consultancy focused on business improvement. They can be reached at bsabath@trissential.com and rsherman@trissential.com. F rom college courses to on-the-job training to professional seminars, we’re taught that supply chain is a complex set of processes that follows specific rules to achieve the best results. Yet most supply chain innovations and breakthroughs evolve from situations where the basic rules were actually broken or changed. Is there a disconnect? Breaking the rules has to do with knowing when it’s beneficial to make an exception to accepted practice or to challenge the conventional answer. It entails scanning the horizon for new technologies, best practices, or approaches that change the paradigm of how we do things. Winning companies often excel because they saw a situation differently and were willing to take the risk and the initiative to break with the accepted logic. Innovation is all about breaking the...
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...Analysis of Dell Computer and its use of Information Systems in CUT THROAT PC Industry Simon T. Lau Table of Contents Analysis Paper Objective Section I : Industry Analysis : The Personal Computer Industry A. Personal Computer (PC) Industry Profile B. Porter Competitive Model for PC Industry Structure Analysis C. Business Strategy Model and Representative Business Strategies D. Globalization of the Industry E. Importance of the Information Technology to the Industry Section II : Company Perspective : Dell Computer in the PC Industry A. Business Leaders and Company Profile B. Competitive Strategy Statement C. Dell Computer Financial and Market Performance D. Significance of Information Systems at Dell Computer E. Strengths and Weaknesses of Dell Computer Section III : Structured Analysis of Information Systems at Dell Computer A. Strategic Option Generator B. Roles, Roles and Relationships C. Redefine and/or Define D. Significance of Telecommunications E. Success Factor Profile Section IV : Final Analysis – The Success of Dell Computer in the PC Industry A. Success of Business Strategy and Information Systems Use to Day B. Is Dell Computer effectively positioned themselves for the Future? Bibliography Three Outstanding Articles Analysis Paper Objective The objective of this paper is to analyze Dell Computer Corporation (Dell) business...
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...footprint that has forever altered the scope of service within the logistics industry. From its humble beginnings as a delivery company, it has set itself up a global logistics and business services organisation that has shaken the belief held by behemoths regarding the level of innovation and service that they can offer to the customer base. With its out-of-box approach it has made industrial leaders like UPS, DHL etc, and look like new kids in the block. The strategic initiatives that the organisation has taken during various time a frame has exemplified the leadership ability of Mr. Smith to work toward uncertainly and how to respond to them. Introduction A general assumption regarding strategy is that executives by applying a set of tools will be able to predict a future of any business clearly enough to choose a clear strategy or direction to adopt. This overall scenarios and assumptions made usually led to a layout of vision for the future with assumed precision. However, one needs to remember that when the time ahead looks uncertain this approach is at best only helpful marginally and may in fact sometimes be dangerous as underestimating certain factors will only expose the organisation to more uncertainty and may eventually lead to its decay. In the opposite end of the spectrum lies the scenario where managers would be unable to find a strategy that would work under traditional analysis and this would later on lead them to totally abandon the tools with presumptions...
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...The Apple Supply Chain: The Best in the World? by Steve Banker July 2nd, 2012 Many supply chain professionals consider Apple’s supply chain to be the best in the world. I don’t. The reasoning appears to be that since Apple is one of the fastest growing and most profitable companies in the world, it must surely have one of the best supply chains too. This is a “halo effect” fallacy. Apple is the best in the world at innovative product development. Because the company develops hardware, software, and associated digital services—rather than just focusing on one dimension—it can provide an unmatched user experience. This allows Apple to capture high margins from its products and services. But by my definition, product development is not supply chain management; procurement, manufacturing, and logistics are. That said, Apple has a fascinating supply chain that is very different from traditional supply chains. This supply chain comes with pre-built advantages and disadvantages. On the advantage side, demand management is easier. Apple doesn’t have to get the demand forecast for a new product right. As long as it underestimates demand for a hot new product, Apple will have loyal customers clamoring for the new devices and willing to wait. In fact, the projected backlog leads customers to line up for hours before stores open to buy a new product. This helps to create marketing buzz. Because Apple has become so large, it has procurement advantages smaller rivals can’t match....
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