Answer To: Topic- Dell's Configure- to- Order (CTO) Supply Chain Strategy Dell has grown phenomenally since its...
Insha answered on Aug 17 2021
DELL'S CONFIGURE-TO-ORDER (CTO) SUPPLY CHAIN STRATEGY
Executive Summary
This report is a case study analysis of the Automobile company Dell. Dell was founded in 1984 by Michael Dell, a student of Medical in the US. The company has evolved from being a manufacturer of just PCs into an end-to-end technology solutions provider. To begin with, this case study will analyse Dell’s success and the reasons behind it, followed by the competitive advantages it is having and its management. Finally, the report will discuss the CTO and its postponed production work with some personal recommendations to the organisation.
Table of Contents
Executive Summary 2
Introduction 4
1. Key Reasons for Dell's Success 4
Social Company 4
Customer Relations 4
Manufacturing 5
Direct Supply Chain 5
2. Ways for Dell to Maintain its Competitive Advantages 5
Dell Direct Model 5
Internet Advantages 6
Differentiation Strategy 6
CRM (Customer Relationship Management) 6
3. If Configure-to-Order and Postponed Production Work Elsewhere with Justification 7
Configure-to-Order 7
Product Postponed Strategy 7
Conclusion and Recommendations 8
Recommendations 8
Conclusion 9
References 10
Introduction
Dell has largely risen in its supply chain and manufacturing innovations. This report analyses the factors that helped Dell to become a leading company in the industry. This case study will analyse Dell’s success and the reasons behind it, followed by the competitive advantages it is having and its management. Also, discuss the CTO and its postponed production work with some personal recommendations to the organisation.
1. Key Reasons for Dell's Success
Dell is a leading provider of PC in the market. To become a successful brand it took efforts and some special strategies and policies of a company that makes it exceptional. Below are discussed few factors that help the organisation to succeed.
Social Company
Dell has always been a socially active company. It connects with its consumers directly and has a good communication channel. It has a team of 10,000 employees trained as social media professionals and actively looking to expand the team. The company has a very unique customer service technique that they use to solve queries more efficiently (Dhanya & Subhiksha, 2021). The technique is to do sentiment analysis and use them to identify issues with their brand and products. Susan Beebe, Dell's Chief Listener said that according to her there is no other company more committed to helping customers than Dell (Dhanya & Subhiksha, 2021).
Customer Relations
For a decade, Dell has changed its selling policies. They removed mediocre and intermediaries in the process. Therefore, the direct model of selling computers to customers has become a huge factor in the company's success. It created an authentic, strong and loyal bond between the company and its customers. Customers are able to trust the product, policies and pricing due to this direct communication link.
The company had a 24-hour availability of customer service through various means such as telephone, email, text and personal assistance (Kusumaputri, 2021). They have the personal assistance of a technician ready to be at your door to fix any issue that could not be resolved over the phone. Many pieces of research and surveys have proven that Dell along with Amazon has the best customer relations. In fact, Dell is one of the most customer-centric companies in the business world.
Manufacturing
Dell has aspired to create long-term associations with top brands in the computer manufacturing industry. Dell has its key suppliers to establish inventory hubs near its own assembly plants. They openly shared their production schedules, sales forecasts and plans for new products with their suppliers. Dell was able to take advantage of vertical integration because of its strategic closeness with supplier partners. Dell's manufacturing and assembly processes have been designed in such a way that products can be produced in minutes (Kusumaputri, 2021). Manufacturing scheduling can determine resource availability and prepare a production schedule based on actual demand.
Direct Supply Chain
Dispersion alludes to the way toward making an item or service accessible for use by a customer or business client. It is one of the four principal components of advertising, alongside product, evaluation and advancement. A shrewd supply chain methodology is important for progress and can be proved as a competitive advantage source (Hagiu & Wright, 2020). Dell has a genuinely unique procedure contrasted with different companies.
Customer can place their order via the web and Dell will deliver in a brief time span. The customer will receive the product in a couple of days...