6 pages/≈1650 words
Literature & Language
Improve the General Performance for Dell Inc (Essay Sample)
SUPPLY CHAIN PERFORMANCE IMPROVEMENT source..
Using Fundamentals of Supply Chain Management Simulation to Improve the General Performance for Dell Inc.
SUPPLY CHAIN PERFFORMANCE IMPROVEMENT
The general improvement of the supplier performance is a concern for most organizations as both the endogenous and exogenous factors of management affect it. This simulation utilizes mechanisms such as the balance sheet, cash flows, income statement and other consolidated financial statement to improve performance.
Dell has committed itself to operate in a way that would not only achieve excellence in operations but also benefit the company financially and would result in satisfied customers. Because of its commitment to constant improvement the company installed the direct selling method where JIT system and lean production were adopted which improved company`s efficiency and effectiveness in many areas. On the other hand the company used the rapidly growing IT technology well by working on customer focused ordering system which enable them to design their own product, which resulted in much satisfied customers and zero inventory level. Zero inventory level was further implemented by changes in the supply chain and integration of the entire company`s operations into the supply chain. Through redesigning of systems and process, Dell is able to become the most efficient PC manufacturers in the world. Dell has installed a system which serves as a benchmark for many manufacturing companies.
As a manager I have a mandated task to figure it out on how to improve on costs, delivery of computers, product quality and the general market image. The company works with more than 100 suppliers. The simulation assumes that the company deals in one main product, supply of computers, and also have one constant unit price in stock moving along the supply chain. The company works with more than 100 external suppliers, with 40 of them making up to 80% of it outsourcing expenditure. The overseas suppliers are given due consideration depending on the market structure in their country and the current exchange rates against the dollar.
Balance Score Card:
Unit Cost, difference in price compared to competitors
Growth in Sales, Net sales
Profit margin, Gross Profit, Net Profit
No. of complaints, No. of repeated customers
No. of repeated customers, Sales surveys
No. of new products introduced, expenditure on research and development.
Improvement in Supply Chain Management
% of cost reduced, time to deliver a prod...
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