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NAME ROLL NO

Nitesh Nayak 06

Shivam Yadav 45

Anup Edward 10

Deepak Toppo 05

Atul Hansda 15

Amit Nilesh 58

Abhijeet John 11

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Dell at a Glance

Globally 2nd in computer hardware design, manufacturing and

distribution with a market share of around 16%.(HP is 1st with19%)

Founded by Michael Dell in 1984.

1987 --first computer systems company to offer next-day, on-

site product service . Greater than $50 Million sales per day through the internet

with yearly revenue of $55.908 Billion with employee base of78,000.

Ventured in areas of storage products, workstation systems,online technical support, appliance servers, network switches,standards-based point-of-sale offering for retail customers,recycling .

Shipped more than 10 million systems in a single quarter (Q4,

FY06)

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Dells Direct Model

Direct relationship, most efficient path Low cost and best value Built to order Customized systems Superior, tailored service and support

Highest quality and most relevant technology

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Material costs account for 74%($21 billion) a year for dell.

Improving SCM by 0.1% has bigger impact than improvingmanufacturing process by 10% .

Changing technology obsoletes Materials value by almost

1% per week .

Rely on market forecasting to drive Production.

Technological breakthroughs cause very short Product lifecycles .

Why SCM is so Important in PC

business

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Need to hold inventory at each step in value chain .

Have to pay suppliers first before getting paid fromcustomers .

Caught with short supplies of hot products- lost sales.

Stuck with excess inventories of slow selling products .

With about 2,000 product transitions a year, the ability toreduce product time to market is critical.

Competitors Disadvantages

vis--vis Dell

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DElls CompEtitivE ADvAntAgEs

Dell is having one of the best SCM in the world.

90% supplies ordered online using integrated websites ofsupplier and Dell (B2B).

95% of suppliers situated very close to assembly plant hence

coordination is easier.

Dells factories have only 7 hrs worth of inventory for most

items whereas industry wise it is around 10 days.

15 suppliers provide almost 85% of all supplies.

Dell gets paid by customers and then pays to its suppliers.

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Dell chose i2 Technologies for its SCM system. i2 serves almost 70% of the SCM market.

Every 20 sec the S/W aggregates orders, analyzes

material requirements ,compares Dells on-handinventory with its suppliers inventory and then

creates a supplier bill of material to meet its orderneeds .

Instead of forecasting the daily supply needed, Dellreceives the exact material every two hours to fulfillactual customer orders.

Dell Chooses i2 SCM S/W

package

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Dell ERP Debacle140 member team was set up for ERP ( SAP) implementation.

Cancelled when costs shot up and flexibility of system went down.

Reasons for no company wide ERP

SAP is like cement, flexible when poured but rigid once it hardens.

Decentralization of company into 4 major regions-AmericaEurope , Asia and Japan .

Focus on technology which should remain open, flexible andadaptive .

Even a small error might be very costly .

HP lost $160 million because of SAP implementation errors .

Nike lost $100 million because of SAP demand planning error.

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What is RFID

RFID stands for Radio FrequencyIdentification Devices.

RFID is a 3 part technology consisting of:

A reader

A receiver with decoder

A Transponder

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RFID applications

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RFID at Dell - Manufacturing

Tracking code and Computer assemblyinstructions are added to the tray.

This determines the specific line towhich the tray should go to.

At every stage of the assembly, the tagsare read by the antenna for specific

instructions.

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RFID at Dell - Shipping

Once assembled and tested, productioninformation is inserted into the tags and sentto a shipping station.

At the shipping station, the RFID tag transfersdata to the control PC.

This control PC uses this information to printthe appropriate label.

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Benefits of RFID

Production stops have reduced dramatically.

Labor can be allocated by minimizingrepetitive activities.

Returns due to wrong shipping of productshave been minimized.

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ORACLE 9 i DATA BASE

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Delivering High Performance

2 Global Centers with 72 Dell PowerEdge6650 servers.

Dell uses Oracle 9i Database with RealApplication Clusters (RAC) running on RedHat Linux Advanced OS for servers.

Servers help carry out 5 million transactionsa day

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Delivering High Performance -

Storage

Dell uses Dell/EMC Fibre Channel SAN(Storage Area Network)

This helps:

Store and retrieve critical information.

Helps it scale easily and thus enabling it toaccommodate any increase in storagesystem.

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Dells Factory Planner Solution

Manages 250 suppliers who handle 4000components.

Calculates schedules.

Estimates surplus parts in the factory and in

the supplier inventory.

Places orders, which are delivered within 90minutes!

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Reliability

A single database is run on a cluster of Dellservers running on Intel processors.

This ensures that the minute a server isdown, another server automatically comesup and takes over.

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B2B @ DELL

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Business To Business (B2B)ModelINTRODUCTION

Business model for dealing with large businessentities.

Server- to- server communication over internetintegrating both supplier & buyer system.

Shopping online with customers ERP

Procurement Application with simultaneous upgradation.

No duplicate information entry.

Easy process, less cycle time, less errors.

D ll Obj ti With B2B

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Dells Objectives With B2B

Integration

To quickly integrate customers who are capabletoday.

Built a solution to integrate any customer whosupports open industry standard of XML,EDI

To help customers built a B2B solution for rapid

deployment & connectivity.

Providing hardware, software & consultation tohelp build a system which not only connects toDell but even to other suppliers.

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B2B e-Commerce Solutions Connection to more than 20 different industry E-

procurement (ERP) tools & usage of standardformatting protocols.

Example- Ariba, Peoplesoft, SAP, EER,Peregrine,etc.

Basic division into 2 parts:

1. Supplier hosted solutions

Dell will host the catalog .

Customers will access their own custom catalogto retrieve their personalized configurations.

Catalog maintenance by sales representatives.

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2. Buyer Hosted Solutions: Most complex and require resources, time and

effort to implement.

Catalog information exported to a spreadsheet orfile and either sent to the customer directly for

inclusion in their own system or moved to the E-Procurement vendor's network to be utilized andaccessed there.

Information can become outdated so regularupdates required.

Customer bears a large burden of catalogmaintenance.

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Supplier vs. Buyer

SupplierPros:

Real-time Data Updates

Data Accuracy

No Double Entry

Integrated ElectronicTransaction

Allows supplier to managecomplexity of validconfigurations

Cons:

Requires XMLCommunication Capability .

Customer gets a different look

and feel from every 'Punchout'supplier

BuyerPros:

Works well for commoditieswith limited configurations

Catalog Preview Management

Consistent look and feelamong different suppliers

Cons:

Data Accuracy Catalog Management

Manual Data Update andOrder Receipt (sent in email)

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Dell- Customized for theCustomer

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Corporate customers account for almost 85% ofrevenue.

Large corporate customers access Dell websitecalled dell premier which is a customized version of

dell.com. Access to product and service information tailored

to a particular company.

Can order PCs directly from a menu of

configurations pre-approved by the companywithout going through normal purchasing channelsor paperwork.

Dell Premier

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Orders put on Premier are automatically routed tohigher managers for approval which eliminatedpaperwork and delays.

Access to Dells own on-line internal technical supporttools which is actually used by Dells Support personnel

when a customer calls for help.

Premier sites can integrate with - Microsoft (Biztalk)

Oracle, Peoplesoft , SAP ,etc .

Dell Premier contd.

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The Dell Premier sites includes more than

500,000 pages of information and facilitatesgreater knowledge transfer.

Gives detailed info on all the configurations(h/wand s/w) present in the customers pc which

helps in quick decision making for customer ifgoing for upgrades.

The same configurations info helps Dell to makerepeat business with customers by offeringproducts specifically to them.

Dell Premier contd.

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CRM @ DELL

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Dell maintains special DB of its top 50 global customer.

Maintains a Global Data Repository for all of itscustomer.

Uses DB compiled by Dun & Bradstreet for 500 globalcompanies for selectively targeting sales efforts .

Real Time CRM

When a customer calls in for placing order then customerservice links directly to Dells Real Time inventory .

Depending on latest inventory data Dell can :

Push Available inventory at lower cost.

Promote latest/new products at higher cost.

Provide add-on products with discounts .

CRM in Dell

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Has credible anddirect real-timeinfo of whatcustomers arereally buying.

Sales peoplecan lead thecustomers tobuy a particularconfigurationdepending on

the inventory

Orders then aredirectly updated

with thesuppliers whoin turn producewhat isDEMANDED.

Demand Forecasting at Dell

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Starting 2005 Dell set up Kiosk locations at Shoppingmalls across US (Wal Mart Stores and other shoppingmalls), Canada ,China ,Japan and Australia wherepeople can experience dell products .

Customers place order for dell products to be deliveredlater.

Reasons for going for Hybrid Sales Model

Biggest competitor HP gaining market share fasterparticularly in notebooks chiefly because of retail outlets.

Low internet penetration in India and Chinatwo ofbiggest and fastest growing markets.

Dell losing confidence in Direct internetbased sales model ??

Summary of MIS and its Effect in Dell

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Summary of MIS and its Effect in Dell

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THANK YOU