Scm A Case Study Of Dell Commerce Essay

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Indeed, one can proudly mention that this submitted report aimed to provide an in-depth analysis regarding the case study of Dell. Checking out the business performance of such successful leader of technological approaches it is clear that employing IT methods in management and marketing, especially when focusing on e-commerce (Keillor, 2007).

On the other hand, as the report could clarify, Dell indeed, along with its highest technical performance nowadays, may face certain challenges, mainly due to this rapid change of business recently and moreover, the financial and economical crisis that have arisen in the globalization space.

Therefore, the matter requires adding obviously that this report figured out the benefits gained from employing supply chain management, along with referring to its valuable advantages. Therefore, corresponding to this point, the report could articulate the disintermediation definition and its importance to Dell's success, and as well as defining the just-in-time production and its benefits to Dell. Additionally, there is an indication to the way by which Internet and e-commerce contribute to customer service levels. To sum up, this report could successful indicate to evaluating the supply chain management of Dell and as well as could provide the suggested recommendations to be followed by Dell.

Table of Contents

Subject Page

Executive Summary 2

Introduction 4

1- Benefits gained from employing IT for businesses and consumers 4

2- Supply Chain Management - Back Ground 5

3- Evaluating The Supply Chain Management of Dell 6

3-1 Companies Profitability 8

3-2 Cost Savings 9

3-3 Achieving Efficiencies 9

Recommendations & Conclusion 10

References 14

Figure 1 11

Figure 2 12


Indeed, the recent global environment of business nowadays appears such complicated clue, whereas all the concerned parties in the business should take care with the involved principles and theories of management and marketing, simply to realize the aimed profits and more success for the organization.

Employing information technology in business is such critical theme, whereas many benefits can be highly, gained from such concept, along with gaining more satisfied customers for the related organization (Li & Ye, 2010).

Information technology, in fact includes many theories, whereas the concerned academic experts are still suggesting more effective theories based technique, by which the operation of management and marketing will be easy and overcome any encountered challenges (Philip, 2004).

On the other hand, one can importantly urge that Dell as such leader in the technological theme, has its own and unique method in management and marketing, whereas resulted in making this successful company more accepted at the global space and more profitable as well.

This paper attempts to argue with more in-depth explanation the case study of Dell, along with submitting the suggested recommendations for the keen of the concerned official managers there.

1- Benefits gained from employing IT for businesses and consumers

Initially, one should figure out that this downturn of the current global economic has obligated all the traditional methods of marketing especially, via press and magazines to be highly, decreased, whereas other involved elements appeared associated with these new marketing strategies for the corresponded technology industry (Veliyath & Fitzerald, 2000).

Hence, one can admit that advertising employing such new technical methods can absolutely, be considered the best creative method that can attract more customers and offer new solutions and branding.

According to the statement of Boeker (2003), one can figure out that the involved marketing strategy is connected with the basic techniques of the successfully company especially, when its target is attracting more loyal customers toward its distinguished products. Bolton (2004), adds that the effective marketing strategy of the company must focus on the involved audience that are considered its main objective. Dell, indeed, is always taking care with employing the highest available techniques in marketing especially that is corresponding to supply chain management.

Therefore, as long as the company (like Dell), is planning its marketing strategy for the corresponded target audience, its plan should be related with the requirements of its customers in finding the convenient product, especially at a competitive rate (Brass & Burkhardt, 2002).

2- Supply Chain Management - Back Ground

Supply Chain Management (SCM) has been offered by Wal-Mart, and started its growth to include not only these physical aspects of management, but also as mentioned by Barlow (2006), a wide range of highly electronic components, such as Internet.

Wisner & Choon (2000), urge that the term of SCM's term has been largely used to indicate to this integration of the physical and the logistics distribution activities, particularly within those common and regular of retailers, manufacturers, and wholesalers to the efficiently integrate purchasing and supplying other related functions in the involved company.

Even though, Wisner & Choon (2000), urge that no general definition of the supply chain management, or a general understanding regarding the method by which it may influence the characteristics and practices of the company. However, its noted that inventory is highly being held within the a retail SC at certain amounts over one trillion, whereas on the other hand, about 16 - 20 % of these mentioned inventories $150 billion to $200 billion worldwide; $50 billion to $60 billion just in USA that could be eliminated within forecasting, replenishment, and as well as certain improved planning. Supply Chain Management, consequently is such a basic motivation for many involved business, simply to minimize their related costs and focusing on applying such unique technique (Dickersbach, 2008).

3- Evaluating the Supply Chain Management of Dell

Before evaluating the theme of SCM of Dell, one should figure out the involved term "Disintermediation". Indeed, according to the case study of Dell, it is noticeable that there are two basic differences at the traditional supply chain there, disintermediation and the other is related to the real-time production. Whereas Dell could sell to its loyal customers directly, it can additionally cut out certain middleman, the retailer and the distributor. As long as a specified layer that may exist between two layers is removed, it is recognized as the disintermediation. Hence, Dell proceeded to create such disintermediation because it manufactures the aimed products and later sell them at a directed attitude to its customers. Actually, this can minimize time consumption.

Similarly, one can notice the term "just-in-time" employed in Dell, which can refer to the fact that along with the technical process there, each individual computer, which is order can only, manufactured (After) the receiving of the order, and only can use the freshest raw materials that can be delivered to Dell's factories many times per day. Hence, Just-in-time production is known as the real-time production is considered a successful process in the successful performance of Dell.

Indeed, one can figure out many involved advantages of the technique of supply chain management, to be seen in the regular flow of products, services, and information especially, from certain initial sources of materials and services to the existed delivery of the products and the activities that may occur in the same involved company (Azadegan, et al., 2008).

Hence, it is important to add that such approach enables the involved companies to be highly efficient, profitable, and as well as effective. SCM can professionally manage the investors' supply chain obviously, by synchronizing a given demand for the required product with some production capabilities, and as well as optimizing the resource usage (Lee, 2004). SCM can highly, maximize the aimed profits of the company (Storey et al, 2006).

According to Azadegan, et al., (2008), Supply Chain Management can absolutely increase the cross border sourcing, whereas it may be calculated as certain shared service centers for the logistical and administrative functions.

Dell, in case of applying the theme of SCM, it can highly obtain many benefits related, such as which mentioned by Ayers (2006), that there will be this bigger lot size, and many selections of lower taxes, along with realizing better involved environments, including culture, infrastructure, and special tax zone for the corresponded products.

Three basic approaches can be specified for SCM; simulation based methods, network design, and most obviously, this rough-cut methods (Liao & Hong, 2007). Therefore, simulation methods can be understood as certain ways by which some models of SC can be analyzed, this is related to considering the strategic and operational factors (Ayers, 2006).

As clarified by Soosay, et al. (2008), Rough Cut can offer certain policies of decision making, whereas such model may suggest that a site online can be added to the characteristics of SC, whereas there will be a consideration for the correspondence of the assumed websites with those other available in Internet.

Critically, when investigating the benefits gained from SCM for Dell, one can figure out that those benefits may focus on the companies' profitability, cost savings, and efficiencies achieved (Stone, 2007).

3-1 Companies Profitability

In order to get more in-depth understanding of SCM, the matter requires indicating to the focus on such technique in its management, the supplier-buyer dynamics of the related market forces (Handfield & Lawson, 2007). Hence, as clarified by Ayers (2006), buyers will have their own capacities to influence the make-up strategy and the subsequent one of the company, such as Dell. Therefore, those buyers may not consider competitors, but in contrast those with friendly manners. In addition, the cooperative relationship focusing on the integrity and performance can be noted (Thomas & Barton, 2007).

Similarly, one can easily figure out this relationship with the involved supplier that can be occurred at similar way. Accordingly, the involved suppliers may hold certain potential particularly to get the required advantages in deciding the company's advantages (Wisma, 2008). Bargaining power of both buyers and suppliers can be observed in such technique along with its corresponded competitive advantage and as well as its competitive sustainability.

3-2 Cost Savings

Another benefit gained for Dell when employing SCM is related to cost savings. As clarified by Ayers (2006), two basic sources of saving cost appear there, one is related to changing which has been purchased, sold or even consider how and when one may prefer to purchase, sell, processed, and deliver at the usage point. The other source is related to increasing the velocity of the involved material in SC, simply to minimize the consumed time from the entry point to this related chain, until arriving at the final consumption or the final sale (Ayers, 2006).

3-3 Achieving Efficiencies

It is critical for Dell to achieve its unique SCM, simply to add more value to the related business, focusing on the benefit of achieving efficiencies, which in turn can refer to the fact that the product life cycles may be shortening. Therefore, the efficiency of employing SCM can be observed as a source of certain competitive advantage. Hence, the effective and successful SCM can boost the ratios of performance, such as which are related to the return of capital used by minimizing the costs of operation, while at the same time it can increase the turnover of the available assets turnover and additionally, enhance the service provided to the loyal customers (Ayers, 2006).

Recommendations & Conclusion

How technology could be employed effectively in the supply chain management system. As recommendations for the business performance of Dell, one should admit the benefits gained from employing e-marketing that is considered a successful adaptation of these traditional methods of conducting marketing.


Figuring out this new attitude of information technology, it is clear that the technique of the new concept of e-business is such a critical tool that can be used in business at a wider space, which in turn can enhance the performance of the company, along with realizing more profits online. E-business, hence is such an integration of these available resources and activities within the internal process of the business by employing the communication and information tools.


The successful company should consider three basic factors in its marketing strategy, identification, anticipation, and satisfaction. This can as well be corresponded to the technique of e-marketing (Tabak& Barr, 1998). As a matter of fact, the objective of any successful marketing strategy is focusing on fulfilling three main elements, identifying, anticipating, and satisfying. Same task is searched by e-business as well (Sodhi, 2003). Hence, it is easy to find the answers on basic questions which are corresponding to the way by which one can identify the needs of the customers, the way by which one can expect the customers demand online, and at last this way by which one can fulfill the requirements of the loyal customers via e-business.

Figure 1 shows the urgent need to employ both the techniques of e-marketing and e-business;

Fig. 1

Dell, beyond its decision to focus on marketing online, must figure out some creative plans. Moreover, the fully digital available plan can highly articulate the targeted e-strategy which in turn seen valuable for the business success (Myers & Cheung, 2008).

Fig. 2

Figure 2 shows the suggested SOSTAC model which is recognized an evolved technical tool since 1999 when Paul Smith offered it to be considered as an integral tool in analyzing the marketing strategy focusing on e-business. Due to the fact that it may highly distinguish the macro environment of the involved market especially, during the corresponded situational analysis, it can consequently formulate such convenient objectives, tactics, and as well as a valuable strategy in order to meet the requirements of the given market followed by that implementation of the unique performance which may be ended with certain obvious control on whether the planned objectives could be met in real (Moore, 2008).

For Dell to enhance its related business, more innovations are still needed along with using the latest technical available in the information technology. This simply, can be justified by the fact that the result will be gaining more loyal customers, which may be reflected in more profitability for the business of Dell.

Indeed, still the matter needs to clarify that those involved strategies of e-marketing have been widely amended to that wider extent particularly after the dramatic financial and economical crisis which hit the full globalization.

Once again, when referring to the drivers that may determine the supply chain performance, still there is an indication to the fact that for each involved driver, the corresponded managers should highly make trade offs, especially between the efficiency (cost) and as well as the responsiveness. Certain valuable keywords, such as information, facilities, transportation, and inventory should be highly focused on. In addition, regarding the inventory theme, this can be reflected in the theme that all the available raw materials, the work in the process, or as known with (WIP), and additionally the finished products within the policies of supply chain inventory should alter dramatically, this involved supply chains responsiveness and efficiency.

Hence, in order for Dell to be able to face the issues of the strategic fit, it should be keen with understanding what is meant by minimizing the product life cycles issues, difficulty executing the new strategies, the fragmentation of the supply chain ownership, and the increasing differentiation of the related products.

Furthermore, it is highly noticed that both e-business and e-marketing can regularly open new channels online that can be directed towards endless creative marketing strategies, along with realizing the aimed targets of the involved companies and leaders ones, such as Dell. Critically, one should add that always remembering to employ the technique of supply chain management can add much value to all the technical tools used in this information era.