CASE STUDY 1 :

Dell relies on a unique supply chain slrategy that gathers large volumes of customer information through its direct sales model and share it with internal procurement and sales department as well as external suppliers. These close relationships allows dell to know what to supply on real timeand also very quickly and precisely meet the demand, whilemaintaining low inventory. These relationships able io forecast accurately without filling a pipeline of finished goods. To succesfully forecast, Dell maintains a constant flow of data in two information loops .One between customers and the Dell sales team, and the other amongsales,procurement and suppliers. This helps dell to know how well suppliers can support these forecats and also on other end, how dell sales team can effectively promote .Dell'scomunication system provides a rich mix ofcurrent and historical information about supplier performanceIn order to compete globally, Dell should look at efficiency and cost containment. Unlike certain companies who strictly focus on revenue increases; Dell has made use of emerging concept of outsourcing even at early stage while adding value to it through the advanced ICT.

THE QUESTIONS:

a. How Explain what role procurement and sales plays in Dell unique Supply chain strategy?

b. how effectively different drivers of supply chain and internal procurement utilized by dell?

c. Why does Dell purchase most of the components that go into its PC from independent suppliers, as opposed to making more itself? (Dell does little more than final assembly of components into PC)

d. How Dell can eliminate redundancies and maximize the value of the procurement process today?