Dell's Supply Chain Efficiencies and Direct Sales

The demand for designing and managing the supply chain systems is ever increasing. The concept of maximizing productivity, decreasing operational cost that effect manufacturing parameters and sequential process has become ever important. Therefore, companies and business owners are looking for new ways to respond quickly to customer demand that can be tied to all parts of the supply chain network whether it is internal or external. Supply chain customers can have a tremendous impact on the success of an organization. Dell embraced the concept by following its unique direct build-to-order sales model for more than 20 years. Customers can plan their own configuration and place orders directly with the company via the phone or its Web site.

Improving supply chain strategies has become the front line of any business to be profitable in this economy by using lean principles. Understanding the rules and concept unconstrained maximization, optimal level of activity and Marginal benefit cost are so important. In developing supply chain strategies it can be hard; however we are faced with decisions that usually involve some dissatisfaction or conflicts. The most significant part of developing supply is own your decisions and accepting the consequences.

Many years Dell's supply chain efficiencies and direct sales gave it a competitive advantage over its competition with the build to order. The concept of manufacturing build-to-order supply chain (BOSC) made Dell flexible and responsive. This concept was great it produce less unwanted products in the system, it however, only works when the entire system work in Sequential Process. Dell created the process and many other companies followed to include BMW. Build to order supply chain production system has different requirements than are found in standard mainstream production operations. It made things simple and easy to move thought out the production floor. In addition, the requirements for a BTO system include ending the day with empty tables which was great for maintaining zero inventories. It provided more capital and cash on hand for future investments and shareholders. (Wagner et al., 2003).

There were other companies that also struggle with supply chain issues that looked for new ways to improve their process. For example: Apple Computer was