Sales & Distribution Management

Dell
Pros:

Sell directly to customers and build products to order Understanding its customers and inherent differences in customer segments Targeting B2B transactions divided into large companies, govt., education, hospitals, and small business accounts

Customer analysis of how a customer uses our product and what they use it for The close customer analysis enables the company to anticipate shifts in customer requirements and demands

Organizing around customer requirements also provides a means of aligning cost with

customer service

Placing and tracking orders is done by The Traveler which is now visible even to the customers

Dell
Pros:

Parts are bar coded and linked to customers profile- helps in repair and service Specialization in inventory management Supplier report to keep a check on the supplier Treating suppliers, vendors, etc. like partners and as if they are inside the company If there is a supply problem, dell can offer promotions within few hours of recognizing the problem

Cons:

People who are running the business know everything there is to know about the customers who buy those products not just here, but everywhere around the world.

Dells i2 Factory Planner Architecture

As part of a larger deployment of i2 TradeMatrix solutions, Dell implemented Factory Planner, a supply chain management module in the TradeMatrix suite. This article explains how Dell integrated Factory Planner with existing applications to streamline and enhance supply chain and production planning in its factories worldwide.

To provide relevant information and optimized production schedules, the i2 solutions needed to adapt to the existing production workflow, procedures, and IT systems in Dell factories. This production workflow begins as orders are received and assigned to factories and extends to the picking of parts (kitting), building, and boxing of ordered systems on the factory lines. Dell assigns orders to factories based on two criteria: Geography and Product type. Geographic assignments primarily aim to minimize transportation expenses, but also involve considerations such as import/export laws and country-specific product requirements. The second criterion, product type, results from factories that specialize in

Once orders have been assigned to a factory, the challenge becomes weighing what should be builtor orders on handagainst the available supply of parts and manufacturing capacity. The availability and delivery of materials can complicate the decision of exactly what to build. Independently owned and operated Supply Logistics Centers (SLCs) or hubs usually deliver materials to factories. An SLC coordinates the delivery of components to maintain a timely, damage-free, and controlled flow of supplies to the assembly line.

Dell Order Management System (DOMS). This legacy application records all orders and releases them to manufacturing. Accessed via character-based terminal screens, several distinct systems actually fulfill DOMS functions, depending on the geographic region and type of order. Work-in-Progress Tracking Coding System (WTCS). This system lies at the heart of the manufacturing process. Moving an order from DOMS to WTCS releases it to manufacturing. WTCS creates a bill of materials (BOM) and a unique service tag number for each system. Engineering Materials Process and Cost Tracking (EMPACT). This inventory control program governs on-hand inventory. Generally, EMPACT tracks small parts that are ordered in quantity rather than delivered on demand by an SLC. These parts range from inexpensive screws to Intel processors. Value Chain (valuechain.dell.com). This extranet portal for suppliers provides direct, Internet-based access to Dell documentation, forms, tools, and supplier rating scorecards. Operational Data Store (ODS). This database is optimized to support nearly real-time manufacturing decision support queries. Typical queries might ask the location of a particular order on the manufacturing floor or what systems compose the order of a particular customer. Several characteristics made ODS a successful tool. First, it contains only information about the current days production.Although substantial effort is made to update data in near real time, in practice, periodic updating is sufficient for successful operation. Second, the granularity of the ODS data is the same as the data in the

Creating an integrated architecture

Factory Planner needed to be assembled in the required flat file format. Data is grouped into three categories:

Demand data consists of orders released to manufacturing, which are sorted by associated priorities or the promised or target ship date. WTCS pulls these orders from DOMS. Supply data consists of work in progress from WTCS, on-hand parts from EMPACT, and SLC inventory for both on-hand and in-transit materials from TCP. Structure data includes the BOMs from WTCS, the FP plan or model, and other current information about the factory. This factory information covers routings, resources, factories, operations, stockrooms, and base type codes used to route different products on WTCS.

Dell
The Road Ahead :

For Corporate Clients Dell should focus more on enterprise solutions that medium-sized companies are increasingly adopting while concentrating on storage and server business for larger companies. As about 15% of the e-commerce revenues areB2C while rest is B2B.

For individual companies, Dells capabilities through the direct model are related to high
end products. The entry into low end products should be done in a more thoughtful manner.

It is primarily because Dells buyer profile is tilted towards the technology savvy customers-corporate or individual-who are buying a second or subsequent product or replacing the old one.Only for these Dells direct selling model fits in perfectly.

Ikea
Pros:

Against disproportionately large part of all resources being used to satisfy a small part of population

Combination of quality and low price Goes beyond demographics Finding low-priced materials Buy supplier capabilities Develop long-term relationships with suppliers Ikeas supplier alliances in Vietnam allow Ikea to take advantage of the natural resources of Southeast Asia, while providing a competitive source of supply.

Doesnt buy products from suppliers instead it buys production capabilities Interested in suppliers who are capable of producing the quality of products needed, but are

Ikea
Pros:

Provides both technical advice and financial support to suppliers Vendors control costs, encouraging them to shop around for cost-effective raw materials Took design function in house Pioneered the use of catalogues and in-store displays to aid customers in their decisionmaking

Sell furniture in knock-down kits Unique floor plan of the store to encourage shoppers to go through the entire collection

In-store and cafes and play areas for children

Cons:

Customization according to the region is something Ikea has learned slowly.