Thus, the supply chain system of Dell does possess shortfalls and improvement areas do exist.
This paper serves the purpose of critically evaluating the Dell Supply Chain and envisaging not only the efficiency of the system but its inefficiencies as well. The paper firstly describes what a supply chain is. The next section presents what is actually supply chain management. Dell's Supply Chain is discussed next following the critical success factors adopted by the Dell Supply Chain Management. Then a major section of the paper presents a critical evaluation of the Dell Supply Chain. And then the conclusions are finally presented.
Supply Chain involves every person and stage that is involved in satisfying the customer's demands. It includes every party from the manufacturer to the customers. The supply chain involves the chain that starts from manufacturer, suppliers, transporters, warehouses, retailers and ends on the customers (Chopra and Meindl, 2004). The supply chain of every company is active and ever changing. Information and products are the crucial and continuously involved constituents of every stage in the supply chain.
The key to successful supply chains are the customers because the basic intention of the supply chains is to fulfill the customers' requirements (Chopra and Meindl, 2004). Every party involved in the supply chain works to fulfill the customers' demands because when the customers are satisfied and are getting what they actually want, they are willing to pay even high prices for the products and making profits is what every company lives for.
The supply chain is an entire network of various parties striving towards the fulfillment of the demand (Chopra and Meindl, 2004). Thus every supply chain is demand-driven i.e. the whole of the chain of supply works to fulfill the demand (R Ernst, B Kamrad, 2000). The different stages involved in the supply chain involve stocks and inventory which are updated at every stage (Alan Johnson, 2006).
Supply Chain and the Competition
The competition in the entire global industries is now based on the competition of the supply chains. The approaches different companies use to run and deal with their supply chains are crucial for their construction or destruction (David A. Taylor, n.d.).
Supply chain also has a great impact on the cost that the organizations incur and the savings that it makes. Enhancements in supply chains are not just beneficial for the baseline operations but they are also important for the top line operations because an efficient supply chain can increase the competitive advantage of the organizations over the others (David A. Taylor, n.d.).
Therefore, the organizations today are focusing on the lowering of costs mainly through their supply chains and through these low-costs, fulfilling the demands of the customers.