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SUPPLY CHAIN MANAGEMENT

PRODUCT : LAPTOPS

Divya Bhatia 09020241071

Gautam Totade 09020241073

Ankita Chhajlani 09020241104

Kisan Agarwal 09020241106

Soumya Chakrabarti 09020241109

Ali Amjad Rizvi 09020241113


Case Study – Supply Chain
at Dell
• Dell has integrated various operational
components like logistics,
manufacturing, distribution, inventory
management to develop an effective
supply chain strategy.
• Dell has asked its distributors to keep
inventories within 15 minutes of
manufacturing locations.
Advantages:
• Loss due to obsolescence is minimum
• Customers always get latest products
• Keeps them ahead of competition
Innovations at Dell
• Account Selection
• Demand Management
• Product life cycle management
• Supplier Management
• Forecasting
• Liquidity Management
Data collected by questioning
the retailers in Pune
Questions Discussed
• What are the different steps in the
supply chain of a laptop?
• What is the mode of transport at each
stage?
• Who insures the product at each stage?
• What is the mode of Payment?
• How much inventory is kept at each
stage?
• When is the product dispatched from
the company?
• How does the money travel from
customer to manufacturer?
FLOWCHART
» Parts are produced in US and being
shipped to Chennai assembly unit by
AC cargo containers.
» This is done through MAERSK
COMPANY which is a general
shipping company.
» Here the insurance is done by the
exporter in our case DELL, in case of
» Here the parts are assembled
according to the configuration
provided by the distributor.
» Configuration is finalized depending
on the demand in the market, which
is a special feature provided by DELL.
» The finished product is packed,
sealed and sent through courier, in
our case BLUE DART, to the
» These are sent in individual boxes
and not clubbed together in a large
container.
» The inventory is decided by the
distributor on the basis of past
fortnight sales.
» That is how the number of products
are demanded, in our case 50
laptops are kept in a warehouse
» The payment is either cash or credit.
» In case of credit, a credit cycle is
determined, which can further be
increased on the basis of the level of
trust between them.
» Payment possible through EMIs
» Retailer further orders from the
distributor, according to the demand
generated through his customers.
» After purchasing from the distributor
the retailer has to get the product
insured against any kind of damages.
» The retailer has a lower inventory
than the distributor since the product
is sold directly to the consumer.
Sample Product
Specifications
Model : Dell Studio
14
Data Collected from Pune
Retailers
Ashok Taneja
Employed in : Cybernet IT, Pune
Brief Profile: An exclusive HP-Compaq retailer
Company Profile:
• Cybernet has two retail outlets in Pune—the 1,100 sq
ft flagship store and 400 sq ft satellite store—and a
shop-in-shop at a prominent mall in Pune.
• Cybernet’s revenues jumped from Rs 13.4 crore to Rs
22 crore in 05-06 with retail contributing nearly 50
percent, sub-distribution providing 30 percent, and
remaining coming from corporate selling.
• The robust growth was due to doubling of its sales of
portables. Cybernet recorded on an average monthly
sales of 75 notebooks and 30 desktops, tilting the
scales in favour of notebooks.
Innovation by CyberNet IT
• Introduced mobile vans to reduce
service turnaround time to 4 hrs
• Payment of EMIs by collaboration
with Financing companies
Highlights
• Uni-brand strategy selling HP-
Compaq products
• Doubled notebook sales and
recorded a jump of 85 percent in
turnover
• Set up laptop service and repair
centre for all brands
• Launched mobile service centre for
faster turnaround
References
• Mr. Angad Prem
VP, House of Laptops
• Redington Warehouse
Shivaji Nagar, Wakde Wadi, Pune
• Mr. Ashok Taneja
Nehru Place, Delhi
www.softechcomputers.in