The supply chain technology adopted by Dell is one of the arsenals that make it the best computer firms in the world. OptiPlex is capable of telling two-member teams which server or PC to build. It is worth noting that the entire process takes between 3 and 4 minutes.
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The system has electronic commands which later send signals so that the assembling of computers is finalized, boxed up and lastly sent to the tracks waiting to deliver the products averagely, the system is capable of rolling out about 20000 units. The adoption of the system saw to it that manpower is tremendously reduced.
The installed software is capable of communicating with suppliers, pulling in computer components, assemble the product and arrange for shipment of the same. The supply chain adopted by the firm has made it possible for an order of hundreds of computers to be built, customized and delivered within 6 to 8 hours (Stacy 62).
Usually 2 hours are dedicated to store parts that are supplied to the company making it possible for servers and PCs to be out and sent to their respective destination as soon as parts are received by Dell.
Concerning order placement from customers, Dell has used its current system to shift from manual to electronic order placement. The web created by WebMethods software made it possible for communication between the firm and its customers to be instantaneous. From its website, customers obtain products information direct from the company’s server which creates an electronic requisition.
When it is approved by the customer through the internet, a computer generated purchase order is created and sent to Dell this entire steps usually takes about a minute.
The advantage with it is that it has greatly minimized errors time, negotiation of prices based on the customer and cutting costs. The major problem with this is that it is very expensive especially when customizing and most of the customers are still skeptical about it (Stacy 65).
For suppliers, the firm initially used Valuechaindell.com which does what primer pages does for consumers. Through the website, Dell lets its suppliers clearly understand what it needs at any given time. This is very important as it ensures that the suppliers can plan themselves adequately. This was not good enough thus OptiPlex.
The software used is from i2 Technologies which according to the firm has higher precision when ordering raw materials and other components. Incoming order are downloaded after every 2 hours and a software, Factory planner from the same company (i2 technologies) creates a new manufacturing schedule again after every 2 hours. This is used by the company to advise its prospect suppliers what it will need in right time.
It is worth noting that the system is in such away that it will prioritize orders based on how available are the materials. Interestingly, machines are assembled while those parts that are required for use in the next 2 hours are being supplied from suppliers.
Suppliers usually have a quarter an hour to confirm that they have the desired parts and one and a quarter hours to get them to the firm (Stacy 64). Failure to comply with this leads to a reprimand to be written almost immediately. The major advantage of this technology is that it allows suppliers to make instantaneous changes that will suit Dell. However, cost issues have made it difficult for some Dell suppliers to embrace the concept.
Data warehousing is a concept used to refer to the information Dell collects from its customers when they place orders. Vital information regarding product preferences, design among others are obtained each time consumers place orders.
This is very important as the firm can use it to better its services and products to the respective customers (Stacy 67). Ideally data warehouse maintains its functionality in staging integration access (Kimball & Ross 94).
Demand shaping is where the information from data house is used or detailed feedback from consumers to develop products that will be more appealing to customers aimed at offsetting the shortages of certain desired products.
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On the other hand, event tracking refers to a situation where a firm using a computerized system to keep minutes to minute vigilance on its products especially those that are being returned to the firm or being supplied to consumers (Stacy 67).
Kimball, Ralph & Ross, Margy. The data house toolkit. New York: John Wiley & Sons, Inc. 2002. Print.
Stacy, Perman. “Automate or die”. www ecompany.com, 2001. Print.