In what capacity will the Internet change inventory network financial matters Research a partnership s methodology, exh

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Extent of this Presentation. What is Supply Chain Economics Traditional Supply Chain conceptSupply Chain in the Internet eraDell plan of action Dell Internet Supply Chain StructureDell Supply Chain data infrastructureDell Internet Supply Chain as an upper hand. What is Supply Chain Economics.

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In what manner will the Internet change inventory network financial aspects? Inquire about a partnership's approach, show the case A Presentation For INBS 510 By Jenny Ntuk Oct 25, 2004

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Scope of this Presentation What is Supply Chain Economics Traditional Supply Chain idea Supply Chain in the Internet period Dell plan of action Dell Internet Supply Chain Structure Dell Supply Chain data framework Dell Internet Supply Chain as an upper hand

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What is Supply Chain Economics "Production network is the stream of materials, data, cash and administrations from crude material providers through plants, distribution centers to the end clients. It additionally incorporates associations and procedures that make and convey items, data and administrations to the end clients." Supply Chain Economics includes the administration, combination and advancement of these streams both inside and among organizations. Turban, Efraim, King David, Lee, Jae and Viehland, David. Electronic Commerce: A Managerial Perspective. Prentice Hall 2004 pg. 300

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Supply Chain Economics  (2) Supply Chain Management (SCM) is the way toward streamlining an organization's inward practices and in addition an organization's association with its providers and shoppers keeping in mind the end goal to put up item for sale to the public all the more effectively. Store network Integration is the connecting of providers, makers, coordinations suppliers, inner circulation focuses, merchants, wholesalers and all different elements that are included in the generation and conveyance of products to the last shopper. Store network Optimization is the capacity to apply best practices with driving innovation bolster over a whole system with most extreme viability as measured by all elements in the system and especially the client.

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Raw Materials Part makers, and so on Manufacturer or complete great constructing agents Transporter, Logistics and so forth. Merchants & center man Supplies Sources Consumers Retailers Converters Distributors Traditional Supply Chain Concept Involves direct associations among accomplices In conventional Supply Chain, data is dealt with as a supporting component of an esteem included process NOT as a wellspring of significant worth itself.

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Financial Institutions Manufacturers Distributors Subcontract Manufacturers Internet Information Hub Consumer Retailers Suppliers Logistics Providers Internet Driven Supply Chain Concept All accomplices in the store network profits by an incorporated data source. Here the production network is driven by genuine shopper request, so data sharing is basic. Stanford Global Supply Chain Management Forum SGSCMF – W2 –2001 November 2001

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Independent stock administration strategies Information sharing is restricted to current exchange and to direct neighbors in the chain. Free data frameworks Channel stock is overseen as per joint data conjecture on request. (prompting to general channel stock diminishment) Real time incorporated data is accessible for arranging and checking. Perfect data frameworks for consistent data sharing among accomplices Traditional Versus Internet Driven Supply Chain Approach  (1)

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Short term center because of less dependable determining Each accomplice control its own particular achievement or disappointment. Shopper driven mass customization is restricted. Long haul viewpoint because of more dependable community data sharing Channel individuals shares the dangers and reward. Mass customization and work to-request is improved because of continuous data sharing. Customary Versus Internet Driven Supply Chain Approach  (2)

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Retailers Integrator Final Consumers Supplies PC-Maker Distributors Conventional PC Value Chain Final Consumers Supplies Dell Computer PC Value Chain A Corporation's Approach Dell Internet Supply Chain Model The achievement of Dell plan of action is because of its capacity to completely incorporate its production network and furthermore offer specifically to its clients by means of web. Dell's work to-request plan of action is made conceivable because of its in the nick of time and adaptable assembling operation. Each PC framework the organization makes as of now has a holding up client, bringing about ultra low stock level and positive money transformation cycle.

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Distribution System Integration Intel CPU Sony, Philips, and so on CMs/OEMs Component Suppliers Customer Seagate, Herman & 34 others DELL 3 rd Party HW/SW Suppliers Repair & Support Co. BancTec Logistics Companies Microsoft, Intuit Inc. Norton and so on. Falcon Global, UPS & FedEx Physical Flow – Product and Service Information stream Kraemer and Dedrick, Dell Computer: Using E-trade to bolster the virtual organization, University of California Irvine June 2001 Dell Internet Driven Supply Chain Structure Customers arrange data are quickly handed-off to all elements that have part to play in the assembling and conveyance of merchandise to the client. As demonstrated as follows, all the pertinent business elements are electronically connected for continuous data sharing.

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Synchronized Planning Collaborative arranging considers precise estimating & on-time recharging Joint outline and item advancement Virtual Resources Reduces time for new item to get the opportunity to showcase Reduces organization cost Create new items New markets infiltration Higher generation productivity among accomplices Inventory Control Better resource and asset usage Efficient capital speculation

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Information Integration Information sharing & straightforwardness Direct & ongoing availability Reduced bullwhip impact Early issue identification Faster reaction Trust constructing Direct client relationship On-time conveyance Faster reaction time for administration Faster access to assets Ease of customization

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System Integration Logistics Companies CMs/OEMs i2 Intranet DOMS DPS Glovia Tech Doc's EDI Component Suppliers DELL Extranet Customer EDI CRM Finance Procurement Help Desk E-trade Internet Dell Premier Support.Dell.Com Extranet EDI Third Party HW & SW Suppliers EDI Repair & Support Providers Distributors Extranet Dell Supply Chain Enabling Systems Dell incorporates its Supply Chain with the best of breed Information innovation that permit consistent data sharing among all accomplices

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Workflow Coordination Automated business forms E-Procurement Requisition Efficiency & exactness increases Fast reaction Improved administrations Expanded system

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Dell Internet Driven Supply Chain A Source Of Competitive Advantage (1) HP/Compaq Dell All Others IBM Toshiba Fujisu/Siemens

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Higher because of the 2000 HP & Compaq Merger Dell US deal edge is higher than the overall deal because of development of Dell plan of action and higher web impact. Dell Internet Driven Supply Chain A Source Of Competitive Advantage (2) Build-To-Order Direct deals show Fast Cash change cycle Suppliers possess & oversee stock

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References Turban, Efraim, King, David, Lee Jae, Viehland, Dennis. Electronic Commerce: A Managerial Perspective 2004. Pg. 298-332.