The paper “ Inventory Decisions in Dell's Supply Chain" is a persuading example of an essay on business. Dell is an American that is a multinational computer company owned by an individual, with its headquarters in Texas, USA. The company offers computer services as well as other coming up with new computer components and selling them. In this particular essay, I am going to look at how the company performs some of its operations, which have made it emerge as one of the world’ s top computer companies. The company makes use of demand forecasting, in the process of meeting its high inventory turnover through future estimates.
The company is experiencing high demand only able to meet this by utilizing the overall production capacity of its six manufacturing plants. It uses both qualitative and quantitative techniques of forecasting that have seen it arise and come up with an efficient decision-making process. In qualitative techniques, it relies on judgment techniques as well as expertise. Project Management (PM) has proved to be a pertinent component for the company since it has improved its overall performance in the global business.
It has established some stages of project management and through its independent departments, and this has seen it improve in its implementation of projects. The company has made use of the agile PMLC structure in making follow-ups for its projects, especially those that tend to show high levels of uncertainties. It has been able to streamline those initiatives that have to do with the introduction of new hardware components both for laptops and desktops (Kapuscinski, Zhang, Carbonneau, Moore & Reeves, 2004). The company has come up with some business strategies such as customer-driven, Effective Research and Development (R& D), Open Innovation and Build-to-Order.
These strategies have made it emerge 24th top company revenue earner in the USA by luring some of its customers from other companies. It has created alliances with its customers inviting them to take part in decision making as well as giving their views on improving product quality. The company has come up with some operations that have seen it improved in its overall productivity as well as the quality of service delivery to its clients. Dell has gotten in a position to create new goods and services as well as creating value by transforming inputs into outputs.
It has offered various training among other facilitation lectures to its employees, as well as offering incentives for quality work. Through these incentives and training, it has experienced a general increase in labor productivity accompanied by reduced labor hours (Kapuscinski, Zhang, Carbonneau, Moore & Reeves, 2004). The company has located some of its manufacturing plants in certain regions, especially the foreign regions, which have seen it enjoying location-specific advantages. It has established some of its manufacturing firms in Brazil, China, India, and Poland as well as in Ireland and Malaysia.
It enjoys relatively reduced labor expenses with high returns from the local workforce. It enjoys proximity to relevant markets, where it experiences high market access, reduced shipping costs as well as delivery responsiveness. The company has come up with an efficient layout to aid in its space utilization. The different offices in the company’ s premises are arranged in an organized manner, occupying less space and accommodating many employees. The retail layout gets designed in a manner that can accommodate impulsive items for client’ s purchase, with the aim of increasing sells and profit maximization.
It has well established and spacious warehouses with zero handling costs, leading to minimized labor costs and increased computer hardware store. The company has experienced personnel managers with a high level of competencies in their fields. It hires qualified employees across different departments and stages of production, offering them numerous training, off packages and other retirement benefits that motivate them towards service delivery. The employees are given good pay accompanied by different job designs and job expansions, and these have seen the company improve in the computing industry. Dell has well-laid strategies among other activities that enable it best procure the computer materials, transform computer components and deliver them to their clients.
It has well-established transportation such as shipping, to oversea countries, and other locomotives that efficiently deliver the computer parts to the local clients as per their requests. It has good supplies, well concluded in cash and other credit terms of payments and equipped warehouses for storage of its computer components waiting for the sale. Dell has a software-based production planning, scheduling as well as inventory control procedures that it uses in controlling its manufacturing activities.
Through the application of an efficient MRP, the company ensures that different relevant inputs are available for production and the various demanded computer components are available shipping to customers. By use of the software-based production planning, the company gets in a position to alter as well as maintain the possible computer parts in its warehouse. Through MRP, Dell has always strategized its production and purchasing activities with reliable delivery schedules for its customers. Dell has an aggregate planning that has created, analyzed and kept in place a preliminary, estimated timing of its general operations.
It has targeted sale forecasts for its computer since it gets rid of components as well as different production capacities that enable it to meet the different expected customer demands. Through aggregate planning, the company has gotten in a position to undergo low costs in meeting demand forecasts since it gets rid of shortsighted among other day-to-day scheduling. Dell has made use of two inventory management strategies in maintaining its supply base of computer services to its clients.
The first one is a just-in-time method, and through this, the company plans to receive computer components as they get demanded by the clients. The second one is material-requirement-planning, where the company plans for computer hardware components delivery upon levels of sales expectations. The company has established some ways in meeting the market demands as well as creating new demands on other competitive advantageous mechanisms. It has used product differentiation and blueprint strategy, in luring customers and creating new computer services that get not offered by other computer companies such as Apple, HP, and Toshiba among others.
Dell has always conducted product cycle follow-ups and cash flows for the purpose of meeting its core set business objectives and goals (Kapuscinski, Zhang, Carbonneau, Moore & Reeves, 2004). Dell has made use of quality planning, assurance, control, and improvement to meet its quality management goals and the set American Society for quality: ISO 9000: International Quality Standard. Dell has well-established software among other product-quality-detective-machines that can signal the individuals in production and delivery in case of the computer parts deterioration.
It has further made use of customer-feedback-mechanisms where the customers get in a position to communicate back to the organization regarding the quality of the products they get served with. There are some other computer companies including HP, Sony, Toshiba, Apple, Asus, and Acer among others that offer the same computer products and services as Dell. This has led to high competition levels both towards customers and suppliers of computer products demanded by these different companies. Dell has made use of the internet, both for online advertisement and sales, as well as for customer feedback mechanisms.
It has always come up with new products to enable it emerges competitively within the stiff competitive industry (Kapuscinski, Zhang, Carbonneau, Moore & Reeves, 2004).