14. Why SCM is so Important in PC business? June 6, 2010
15. C O S T Material costs account for 74%($21 billion) a year for dell. Improving SCM by 0.1% has bigger impact than improving manufacturing process by 10% . June 6, 2010
16. Dell’s Competitive Advantages 90% supplies ordered online using integrated websites of supplier and Dell (B2B). June 6, 2010
17. 95% of suppliers situated very close to assembly plant hence coordination is easier. 15 suppliers provide almost 85% of all supplies. Assembly plant Suppliers June 6, 2010
35. June 6, 2010 The configuration management component manages over 1 million Dell part numbers per year across approximately 200 product families, and over 2 million bills of materials (BOMs) per year. Configuration management
36. June 6, 2010 The procurement component manages nearly 1.8 million purchase order lines per year from more than 5,000 suppliers worldwide Procurement:
37. June 6, 2010 The inventory component manages more than 3 million inventory movements daily from stock rooms to factory floors across all Dell sites,
38. June 6, 2010 Increased Performance The most significant time savings occurred in the data extraction for all material movements transactions, which dropped from almost 5 hours to just 35 minutes for an 88 percent Improvement.
