Dell distribution
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How to segment supply chain _ DELL case study
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Dell distribution
- 1. DELL DISTRIBUTION Presented by MAROUA AREGRAG
- 2. PLAN - DELL Inc. BACKGROUND - MARKET SITUATION - COMPETITION ANALYSIS - SEGMENTATION - PROBLEMATIC - DELL’S SUPPLY CHAIN SEGMENTION - Key practices - Results - Video of DELL’s supply chain - ‘’SEGMENTED HOSPITAL SUPPLY CHAIN’’ CASE - CONCLUSION - BIBLIOGRAPHY
- 3. BACKGROUND • Founded in Austin, Texas (May 1, 1984) • Michael Dell (Chairman & CEO) • Operational regions: Americas; Europe, MiddleEast and Africa (EMEA); Asia-Pacific and Japan(APJ) • Dell is leader in using supply chain management. DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION
- 4. MARKET SITUATION - Worldwide PC shipments totaled 80.8 million units in the fourth quarter of 2014 (4Q14) DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION Vendor 4Q14 Shipments 4Q14 Market Share 4Q13 Shipments 4Q13 Market Share 1. Lenovo 16,049 19.9% 15,294 18.5% 2. HP 15,880 19.7% 13,796 16.7% 3. Dell 10,879 13.5% 10,026 12.1% 4. Acer Group 6,220 7.7% 6,026 7.3% 5. Apple 5,750 7.1% 4,838 5.8% Others 25,994 32.2% 32,798 39.6% Total Market 80,772 100.0% 82,778 100.0% Source: IDC Worldwide Quarterly PC Tracker, January 12, 2015
- 5. Competition analysis DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION OF DELL PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION
- 6. Segmentation of DELL • DEMOGRAPHIC : No age, gender or race bias but income, occupation & education • GEOGRAPHIC : US, EMEA and APJ • PSYCHOGRAPHIC : Lifestyle, Interests • BEHAVIORAL : benefits sought by consumers such as low price with good quality & service DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION OF DELL PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION
- 7. PROBLEMATIC How did DELL refine its supply chain portfolio to reduce the complexity of demand consumer ? DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION OF DELL PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION
- 8. DELL’s supply chain segmentation What’s supply chain segmentation ? DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION Designing and operating distinctly different end-to-end value chains (from customers to suppliers) optimized by a combination of unique customer value, product attribute, manufacturing and supply capabilities, and business value considerations.
- 9. • Key practices of DELL : Disintermediation : Deleting a player in the distribution chain is a risky move, but can result in a substantial reduction in operating costs and dramatically improved margins. DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION DELL’s supply chain segmentation
- 10. • Key practices of DELL : Improving customer value: This move gave customers a chance to configure PCs according to their specific computing needs. Process and operations innovation: Re-examining process-based work to see if a change could improve efficiency. Let data do the driving: Using the easily accessible sales and customer feedback data (from online sales) allowed Dell to stay ahead of the demand curve in the rapidly evolving PC market. DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION DELL’s supply chain segmentation
- 11. The creation of an end- to-end model in which multiple capabilities can be arranged in unique configurations to satisfy specific customer requirements : DELL’s supply chain segmentation DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION
- 12. Results: - Stronger connection to customers - Complexity reduction - Improved internal collaboration - Cost reduction - Improved forecast accuracy DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION DELL’s supply chain segmentation
- 13. DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION CONCLUSION DELL’s supply chain segmentation
- 14. Research done by Engineering systems department at MIT: The main challenges of the Hospital : - Inventory items move directly from a staging warehouse to the bedside of a specific patient. - Reduce overheads - Minimize space for inventory - Reduce time required by clinical staff to retrieve needed items DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION Hospital’s supply chain segmentation (new case)
- 15. It was proposed that hospital supply chains be segmented on the following bases: DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION Hospital’s supply chain segmentation (new case) Unit Price - Expensive inventory items (Locked cabinets) - Items not requiring tight control (open shelf systems) Unit Size - Large items (near continuous review) - Small items (Less critical review) Unit Critical - Critical items (evoluate the inventory need) - Non critical items (open storage) - High critical items (controlled locked storage)
- 16. CONCLUSION Critical Success Factors • Start with customer value • A unified, end-to-end business strategy • Executive sponsorship • Create a center of excellence for continuous analysis, monitoring and learning DELL Inc. BACKGROUND MARKET SITUATION COMPETITION ANALYSIS SEGMENTATION PROBLEMATIC DELL’S SUPPLY CHAIN SEGMENTION Case study : HOSPITAL SUPPLY CHAIN CONCLUSION