Figure 1: The connection of Supply Chain Management System and Technology Source: Internet... Figure 2: The 7 right criterias in Logistics Source: Internet In business operations, Supply
OVERVIEW OF THE SUPPLY CHAIN
Supply Chain
Supply Chain Management (SCM) is the process of procurement of materials, transformation into products, and distribution More specific, it encompasses the entire product cycle from the intial design and development to deliver product to the end customer An effective SCM is one that optimize efficiency to minimize the costs while improving the overal competitiveness
Figure 1: The connection of Supply Chain Management System and
Pertaining to the objectives, Supply Chain Management is aim at flexibility and sustainability that why it is crucial to enhance the collaboration and communication among different entities in the chain All of those activities is to satisfiy the seven rights in logistics: the right product - at the right time - in the right place - in the right quantity - in the right condition - to the right customer - in the right time - at the right price
Figure 2: The 7 right criterias in Logistics
In business operations, Supply Chain Management which adapting to that all criterias could result in enourmous benefits in general Being implemented effectively, Supply Chain Management can create competitive a dvantages, cost savings, improve efficiency, Moreover, an optimized system can bring
2 more benefits than that, especially in risk mitigation and market demand forecasting As a result, a convenience, modernize, responsible and puntual system in Supply Chain Management is a key component to increase customer satisfaction and boost the company development constantly.
Overview of Dell's Supply Chain
In the technology product industry, starting from a small company in Texas to one of the worldwide leading computer hardware manufaturers, Dell is on of the oustanding and prestige in the market leader, be choosen by global customers at ages.
With a broad portfolio, Dell Technology is generally referred to as an end-to- end technology provider.The corporation delivers services for selling and fixi- ng various associated with computer parts of its gadgets Dell aims to provide an outstanding customer experience while functioning as the world's most successful computer company Among other things, the brand's revolutionary supply chain strategy had inflenced and helped the company grow after challenges
One of the most remarkable point in Dell's Suplly Chain is the direct sales model - the order is accepted directly with customers withing retailers or resellers This model comes up with many account such as accessing and studying the customer needs, shopping psychology As a result, enhancing the customer service and improve product quality
The Dell vison and mission is to give customers diverse and flexible choices, custom product to fullfill customer's needs while simplifying the product processing and focusing on continuous improvement its product to maintain long-term and loyal customer relationships The company's effective supply chain is known as "build-to-order".
Refering to the "build-to-order", this is a customization features in the company product in comparision to others Customers initial choose specific customs in their needs such as hardware size, memory capacity, processor speed, which like you are doing your own unique device Then the company will build the device, ready to deliver to the customer
In order to adapt to the customer requirements and expectations, maintaining an effective and sustainable relationship with suppliers have helped the Dell streamline its inventory management The key
Figure 3: First Dell computer Source: Internet objective in the company inventory management is to reduce the inventory and optimize the production speed, for that, the business pointed out a strategy for not holding products for over 6 days as well as avoiding unexpected carrying costs Dell suppliers are from all over the world, including major giant companies named Samsung, Sony, Motorola, required the manufacture facilities near Dell infrastrucre to cut down on transport time and costs These companies provides an enourmous components to transform into Dell's products, those components are cables, motherboards, HDDs, etcetera Dell and suppliers often has a specific communitation system via an internal website known as Value Chain
For that the data is cloud storage which provides benefits for quicky accessing information about the inventory status and getting the product demand
The fact that development and research expenses tend to be considerably greater for a company to maintain a monopoly in their segment in the realm of rapid innovation change, Dell preserves an honorable relationship with suppliers and assists them in focusing on innovative capacities to support initiative segments For this reason, vendors are requested to maintain lot sizes and inventories as low as is reasonably predicted Dell consistently prioritizes consumer research and uses it for its gain as well as that of its suppliers.
In recapitulation, Dell supply chain is efficiency like a recipe for sucess The company make what's needed when needed, which leads Dell being a big player in the computer industry by its unique business model for four cirterias: direct sales, cost efficiency, diversification and customization
Figure 5: Dell's supply chain system
MANAGING THE SUPPLY CHAIN FOR DELL
Supplier Relationship Management (SRM)
1.1 Dell Suppliers and the RBA
As being mentioned above, Dell works closely and maintains a strongbond relationships with its suppliers to ensure the flow of goods or components for devices at the right time, and quality, quantity
Among that, Intel, Foxconn Samsung and Sony are company's giant suppliers that supply the components such as cables, motherboards, hardware, microchip, screen,
A large number of Dell suppliers manufacture parts for various electronics industries Business collaborate and act consistently when it comes to systemic issues, raising the standard on a regular basis, and monitoring supplier performance is a requirement Therefore, the Responsible Business Alliance (RBA) was established in 2004 by Dell and other top electronics businesses as a nonprofit organization with the shared objective of advancing social, ethical, and environmental responsibility in the global electronics supply chain through the use of common standards and tools.
Figure 7: Dell's suppliers productivity Source: Dell Technologies Report
1.2 How Dell communicate with suppliers
In term of information exchange, Value Chain is the internal website that promotes interaction among Dell and its suppliers Businesses can access demand and production data, as well as information on the supply chain's inventory status, via accessing this website.
Besides that, as a requirement of doing business with Dell, the company ask its suppliers to adhere to Supplier Principles and the RBA Code of Conduct.
The RBA Code of Conduct applies the harsher of the two standards for determining whether local laws have been followed Through its risk assessment, audit procedure, management of corrective action plans, and capability building initiatives, Dell keeps an eye on and works to enhance suppliers' adherence to these standards The company defines the RBA as
1.3 Collaborate with suppliers to improve the process and innovation
In order to improve the processing time, no more middleman is a strategic strategy that brings enourmous benefits to the business Making use of internet connection, Dell developed a friendly system as a e-commerce platform This internet-based dicrect sales helped the comapny collect data for demand forcasting and customer behaviour in order to carrying out impressive strategies for researching and developing innovation products Without investing biilions to set up its own manufaturing operations in-house, Dell collaborate with suppliers with strictly terms, conditions pertaining to the quality of components Moreover, to control the just-in-time delivery, Dell required its coperators to establish hubs close to the company plants which ensures the quick and immediate communicaton between company and suppliers
Diversification of Suppliers
Parts/ Components Displays/ LCD Data domain isilon
It can be seen that Dell has a close and strong relationships with diverse companies in the world to provide necessary components for devices Each giant company has its own specific, unique and strength For that particular reason, Dell does not only collaborate with one company for an item, the
11 business keeps contact with qualified companies that have the full potential to provide enough goods even during the peak time
For example, Samsung is mainly provide Dell with LCD and displays but Dell also works with LG to ensuring the flow of goods entire year
Besides corporations mentioned in Table 1, Dell connected with many companies worldwide to maintain and ensure the supply chain for compnay's manufacturing and servicing In case a supplier is out of stock, there is still backup plan that other companies can fullfill the necessary parts for product completion.
Technology Integration
In the domination of technology and sophisticated logistics networks, the connectivity of company can pose a tremendous risk to the growth, prosperity what why supply chain security is a challenege to not only Dell, but also other companies in this industry Therefore, Dell initially contructred its own business model with partnership to enhance a working style and trust among people
Figure 8: Dell's utility - Source: Dell.com
Be strength in technology domain, Dell Technologies has developed services that enable Dell Digital and business teams to create, monitor and manage and speed up business results Dell call that function as Integration-as-a-service (INaaS) INaaS principle roles:
Give users personal access to platforms that is similar to the cloud.
Allow self-service features and take time-to-availability into consideration.
Evaluate each integration's total cost of ownership.
Make the most of infrastructure budget
Considering the development of Internet of Things (IoT) devices and blockchain technology, there exists now a potential to digitize the whole Supply Chain process and alter the sector.
The Internet of Things in the supply chain, refers to the technique of using networked devices to gather and distribute data on physical objects, like assets and goods in route Organizations may improve supply chain management overall, optimize decision-making, and better control over freight transportation due to this real-time data sharing IoT ultimately results in a more transparent and efficient supply chain by facilitating end-to-end tracking, cutting down on waiting times, and enabling dynamic deviation responses However, there is a rising fundamental challenge besides the enourmous beneficial that is security.
Figure 9: Dell's Visual Command Center (VCC) - Source Dell Blog
Dell Visual Command Center (VCC) software offers powerful visualization to help minimize or eliminate the impact of events By including Dell's warehouses, current customer dispatches, and deployments, the GCC can efficiently assess and manage the event's effects
Dell holds an to eliminate current obstacles to the corporate use of blockchain technology The company has been able to develop reliable, secure, high- throughput, and high-capacity distributed ledger systems thanks to Dell Systems' rapid technological innovation Robust engineering and well-
14 considered distributed system architecture are prerequisites for these solutions.
The enterprise-ready Blockchain solutions from Dell Technologies offer low costs, high energy efficiency, and top-notch security requirements integrated together By utilizing cutting-edge consensus mechanisms, Dell's Blockchain technology can assist financial institutions in achieving best-in-class performance and scalability.
The following is provided by the blockchain solution from Dell Technologies:
The market's quickest and most scalable consensus algorithm.
By developing enterprise-level tools and connecting with the Blockchain, Dell is enhancing the value of the core Blockchain.
Additionally, this is compatible with already-built infrastructure environments.
Dell Technologies Blockchain offers financial businesses a versatile option since it can operate on any cloud.
The Dell user interface has the unique capability of managing and reporting on many Blockchains.
Figure 10: Blockchain Architecture Source: education.dell.com
Demand Forecasting
At Dell Technologies, there is Dell services teams with many sub-team: planning and strategy, finance, operation, etcetera Their main roles are to efficiently forecast demand by data accumulating from the direct order strategy and so on These teams forecast: ship, contracts, active service units, service request, dispatches
Figure 11: Workflow of forecasting process Source: infohub.delltechnologies.com
To conduct accurate forecasts, historical data plays a pivotal role in Dell demand forcasting It gives Dell important insights into past demand patterns, allowing them to recognize trends, seasonality, and other demand-influencing variables Therefore, the business can create forecasting models that account for these issues by utilizing previous data, which will result in more precise projections of future demand There is a principle point to concentrate that Dell directly sells product to custmers without middleman (by using its websites, call centers, sales teams) This model brings a tremendously useful
17 collection of customer data and behaviour that the company gains valuable feedback and insights can be used to predict customer trends.
Inventory Management
Implemented a specific model as dictect sales, which allowed Dell to quickly deliver customized product to its customers while keeoing the inventory costs at a minimum amount in comaprision to competitors - who build a huge amount of computers in different far away places and be sold in store The reduction of inventory and enhancement of production speed are the primary goals of Dell's inventory management As a result, the business saves money by not holding inventory for more than six days.
In this era, technology development has helped to cut down the supply chain of subcontractors and products from a week to only or fewer than 24 hours
Figure 12: How does LOIS work Source: Dell Technologies Report
Be well known as a technology company, it is not confusing that Dell built up its own logisitics solution known as LOIS - Logistics Online Inventory Solution For furthure information, Dell Technologies customers may
18 manage, track, and automatically restock their parts inventory at their global locations with the help of the cloud-based online tool called Logistics OnlineInventory Solution (LOIS) By giving clients individualized, rapid access to crucial elements, LOIS reduces the time it takes to resolve issues and helps clients IT professionals operate more efficiently over time Our clients may more effectively accomplish their business goals and concentrate on what they do best—innovate—with LOIS Customers can more effectively handle spare parts while enhancing asset supportability using the support of LOIS.
Sustainability Initiatives
6.1 Dell visions to social and environment
Global challenges in recent years have placed the demand on Dell Technologies and its suppliers to demonstrate unprecedented levels of resilience and innovation The company dedication to doing due diligence in the social and environmental spheres has not altered in the face of these trying circumstances.
In the technology industry, Dell has one of the broadest assurance and engagement programs for social and environmental responsibility (SER).
Dell proactively identifies and tackles problems across all supply chain tiers
—final assembly, direct, and sub-tier suppliers—through our SER efforts.
Using information gathered from its operations, partnerships with the industry, and interactions with stakeholders, Dell concentrates on the most important environmental and human rights concerns which enable the business to encourage ethical production methods, diversity, and inclusion in the supply chain The organization combined insights highlight how important it is that the comapny has solid partnerships with its suppliers.
International standards, such as the United Nations Guiding Principles on Business and Human Rights, the United Nations Universal Declaration of Human Rights, the United Nations Convention on the Rights of the Child, and other pertinent U.N conventions, serve as the foundation for our supplier expectations regarding responsible and ethical business practices.
Moreover, Supplier Principles - forming the basic for environmental and social - is the initial condition that all Dell suppliers have to adhere to do bussiness with the company For short, Supplier Principles includes applicable laws, regulations and purchasing requirements; Dell policies, relevant international standards in production and processing such as International Labour Organiation (ILO), International Organization for Standardization (ISO), National Institute of Standards and Technology (NIST) - cybersecurity framework.
6.2 Four-element approach to Dell sustainable supply chain with suppliers
Dell tend to focus on building sustainable progress with its worldwide suppliers through acting the mission of continuous improvement by diligence efforts Besides that, Dell set up its own specific four-elenment that approach to the company audit program
Four-element approach to Dell sustainable supply chain:
Figure 13: Four-element in Dell sustainability supply chain
FY22 Source: Dell Technologies Report
As part of the enrollment process, Dell performs preliminary risk assessments for its suppliers before staring business with Dell
In the initial stage, the suppliers are required tho fill out a self-assessment questionare (SAQ) that provides detailed information as a standard for Dell to first measure risk level The criteria involves:
Geographic location: This is crucial to get insight into the related social problems at the national and local level as well as the environmental issue (air pollution, water quality, ).
Commodity: This takes into account certain manufacturing hazards including labor intensity, production procedures, and paints or chemicals used in the process
Prior instances of responsible manufacutring performance: This covers audit findings from the past and involvement in its attempts to develop capabilities.
Extra insight: This is data that the Dell social and environmental responsibility (SER) team gathers from independent sources, like third- party and regulatory organizations, or from routine factory visits.
The amount Dell spends with the supplier: This shows how much power Dell has over them as well as the scale of their business.
In terms of the quantity of audits performed and its reach throughout the supply chain, Dell Technologies' audit program is among the biggest in the technology industry Its goal is to pinpoint supply chain sustainability risks while offering suppliers the tools they need to improve their social responsibility (SER) credentials while also resolving problems Additionally,
Dell encompasses its suppliers in focused evaluations and initiatives to provide additional chances for enhancement.
Dell anticipates that the Responsible Business Alliance (RBA) Code of Conduct will be followed by suppliers Audits support Dell in working with suppliers to take corrective action and enhance their performance by keeping an eye on suppliers' adherence to the RBA Code of Conduct and highlighting any areas of concern
Figure 14: Improvements in Dell's supplier factory performance, FY22
Pertaining to the third-party, the RBD-certified auditors The company supplier audits, which include more than 40 subjects across five areas— labour (including risks of forced labor, child labor, and nonconformance with
23 weekly working hours standards), environment, ethics, and management systems—are carried out by independent, RBA-certified auditors
The audit results are categorized as priority, major, minor, and risk of nonconformance, ranging from most severe to least severe Given the seriousness of the findings and priorities, a timely resolution is necessary.An audit finding that the supplier has addressed has to be closed, either by a second audit that is successful or by Dell SER professionals who confirm that the problem has been fixed.
Figure 15: Dell's corrective actions and findings closed,
In the event that an audit reveals areas of non-conformance with the Responsible Business Alliance (RBA) Code of Conduct, Dell Social and Environmental Responsibility (SER) specialists collaborates with the supplier to develop a Corrective Action Plan (CAP) that addresses the concerns within the timeframes specified by the RBA Dell's team helps the supplier find the core reasons and put mitigations in place that promote long-lasting improvement through the CAP.
In the strong collaboration relationship with suppliers, Dell ready to provides resources for suppliers, helping their labour to build knowledge and skills in areas such as health, safety and energy efficiency that are proactively contribute to address social and environmental risks Dell activities for this contribution involves:
Figure 16: Dell's strategy on capability building
Factory consultations: This is to better monitor and minimize risk level, Dell's Social and Environmental Responsibility (SER) specialists will directly work with suppliers at their factories.
Led-training and webinars: Utilzing Dell knowledge with digital tools to organize vitual networking events, training courses.
Self-paced online trainings: Dell offfers digital learning opportunities for supplier management in mulitple languages through its online training platforms.
Training for frontline employees: Dell valued employees who helps the comany monitor factories Therefore, opportunities for deeper learning to further adapt to the company standards and requirements is a both sides benefit
Developed tools and resources: Dell developed and shared tools that the company have developed with factories to automate monitoring the working process while ensuring the safety and envionmental protection.
26 Figure Dell's key performance indicator, FY22
6.3 Dell's vision to sustainability supply chain with environmental protection
Dell is aim at reducing the company supply chain's impact on the planet and collborate with stakeholders to address the problems of climate change Dell efforts to drive sustainability in every aspects of business and hold its suppliers, partners in the same level of accountability
Figure 16: Dell performance on reducing impact on gobal planet, FY22
Dell stepped up its supply chain environmental initiatives and saw advancements in waste management, water stewardship, and greenhouse gas (GHG) emissions reduction through its supplier partnerships.
For 2020 and 2021, The Institute of Public & Environmental Affairs (IPE) in China recognized Dell as a Green Supply Chain Corporate Information Transparency Index (CITI) Master, highlighting the beneficial effects of the
27 company's supply chain environmental initiatives Only two businesses have received this accolade, including Dell
A corporation must adopt to these qualify to be recognized as a CITI Master:
Place as a top-performing brand in the CITI ranking each year to be eligible to become a CITI Master
Promote strict performance benchmarks for the environmental management of their supply chain.
Demonstrate that all significant vendors use data systems to monitor their environmental performance.
In general, from laptops to enterprise solutions, Dell has continuously introduced new products and services, maintaining a strong position in the technological innovation market Furthermore, Dell's initiatives demonstrate a holistic commitment to environmental responsibility and technical growth.
Product Design and Standardization
Figure 17: Dell aims at sustainable design
In order to maintain the sustainability strategy, Dell designers and engineers have worked tirelessly to support its moonshot goal By 2030, Dell aims at half of its product portfolio and all of packaging will be composed of recycled or renewable materials, and company will recycle or reuse an equal product for each one sold The company is aware that cooperation will be essential if we are to succeed in this endeavor For this particular reason, in addition to the largest brands in technology, consumer goods, and waste management, the company has also joined the recently formed Circular Electronics Partnership (CEP), where Dell will collaborate to advance the circular economy.
The Environmental Protection Agency (EPA) honored Dell efforts which greatly contribute to the technology industryas part of the 2020 SMM Electronics Challenge Awards The Champion Award for "the Dell Latitude 7300 Anniversary Edition" was presented to the business Dell has won a
Gold Award (Champions Award) for recycling seven years running For more information, the Dell Latitude 7300 Anniversary Edition is a unique product with speacial sustainability features: utilizing about 25% discarded plastics and 75% high density polyethylene plastics in the packaging process
For the device, Dell tend to create a non-woven carbon fiber cloth using materials from the aerospace sector, take the Dell Latitude 7300 Anniversary Edition as a prime example This reduced its weight, which is crucial for PCs, and increased its durability Over two million pounds of recovered carbon fiber have now been kept out of landfills thanks to the company's increased use of it in more of its products Moreover, Dell has a strategy for the whole lifecycle of the device: from the recycled content in packaging and the sustainable materials Dell sourced to the design of long-life batteries, the use of waterborne paints that lower VOC emissions, shipping by ocean In the end, returning the device to customer when they need a new one
Figure 18: Dell Latitude 7300 Anniversary Edition Source: Dell Technologies Report
Logistics and Transportation Optimization
Dell's supply chain approach has been reinvented as the company utilized the following strategies to restructure its supply chain to optimize its process:
Instead of a regional framework, there is a global structure with three business units: enterprise, public, and consumer/small business.
Standardized offers that include the most often purchased configurations.
Instead of a one-size-fits-all model, use a segmented model.
Infrastructure that adapts to changing business requirements.
Standardized yet adaptable processes that capitalize on global collaboration.
Customer objectives were aligned based on speed, choice, and cost.
Ready-to-use, in-stock systems for fast delivery.
Dell Technologies employs a direct form of supply chain management to reach its customers directly This approach allows the organization to reduce production costs, and inventory, and use negative capital However, the direct approach has two major flaws For starters, it raises the cost of support services that would otherwise be provided by retailers Second, daily orders from clients must be recorded and transferred in real-time, adding to the process's complexity.
Figure 20: Dell's Engage the Entire Organization: Individualize Messages
Figure 19: Dell's supply chain evolution
CONCLUSION
Logistics is a critical component of supply chain management One of its key responsibilities is transportation, which allows products to flow smoothly from suppliers to manufacturers and then to distributors and retailers
Logistics efficiency extends to inventory management, which ensures optimal stock levels to reduce the risk of shortages or surplus inventory Another key component is warehousing, which involves the strategic management of storage facilities and distribution hubs to ensure a seamless flow of items through the supply chain Order fulfillment is also included in logistics, and it plays an important role in coordinating activities such as order processing, packaging, and timely delivery to meet client requests Logistics is concerned with the management of information flow, which includes delivering real- time data on the status and movement of commodities.
On the other hand, supply chain management is the overarching framework that harmonizes and organizes all aspects of the supply chain, providing visibility and control from beginning to finish It greatly adds to cost efficiency by streamlining procedures throughout the supply chain, lowering logistical expenses A good supply chain management system also considers risk, identifying potential disruptions and developing ways to limit their impact on logistical operations Customer satisfaction is an important result of supply chain management because it focuses on meeting customer requests through timely delivery, precise order fulfillment, and reduced stockouts
Another essential part is technology integration, as supply chain management frequently involves employing new technologies like analytics and automation to improve the efficiency and visibility of logistical operations.
Supply chain involves logistics, that why there is a shared goal of ensuring a flawless and cost-effective flow of commodities demonstrates the synergy between logistics and supply chain management With an operational focus, logistics manages the day-to-day activities of shipping, warehousing, and order fulfillment Supply chain management, on the other hand, provides the long-term strategic direction required for success It entails network design, supplier relationships, and market positioning decisions, all of which have a direct impact on logistics tactics Logistics and supply chain management collaborate to optimize procedures, cut costs, and increase customer happiness, ultimately adding to organizations' overall competitiveness in today's volatile market.