Dell Procurement Strategy

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Dell has a unique supply chain strategy that focuses on efficiency and delivering value. The company partners with suppliers and uses name brand components to enhance the quality and performance of its products. Dell also relies on a close relationship with suppliers and gathers customer information through its directories model, which allows the company to quickly and precisely meet demand while maintaining low inventory. The procurement system focuses on waste reduction and cost savings, with capabilities including category management, strategic sourcing, and supplier relationship management. Automating order processing and invoicing has led to significant increases in labor productivity and reduced costs. Overall, Dell’s long-term commitment to its suppliers forms the basis of its successful supply chain strategy.

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It was attempting to displace the current model with one that made supply chain more efficient and delivered more value Supplier Partnership Partial Assembly Using name brand component enhanced the quality and performance of Dell PC’s. Getting volume of components it needed the overall market supply. It is feasible to have some of supplier engineers assigned to Dell Product design team and for them to be treated as part of Dell. Dell’s long run commitment to its supplier laid the basis Consumer Specific Configuration Built-Trotter Dell’s Procurement System

Focus on waste, time and cost reduction to maintain margined in competitive market Dell relies on a unique supply chain strategy that gathers large volumes of customer information through its directories model and shares it with internal procurement and sales departments, as well as external suppliers This close relationship allows dell to know what they must be able to supply in real time, and then very quickly and precisely meet that demand while maintaining low inventory Data loop between consumer sales team and other with supplier, sales and procurement team.

Procurement Capabilities Category Management Category strategy development Demand management Strategic Sourcing Supplier Relationship Supplier Performance Sourcing Ref Processing Spot buy Auction/reverse Auction Sourcing event management Packard management Compliance management Analytics support Spend extraction and cleansing, segmentation and enrichment Spend analysis Balanced score cards Master data management Spend visibility and tracking Requisition processing Supplier enrollment Contact operations Catalog management Order fulfillment processing

Payment Management Invoice receipt and 3-way reconciliation Payment, treasury and cash management General ledger posting Resolution of conflicts Knowledge Base Contract negotiations Contract drafting and authoring Process process Streamlined Order Processing Reduction in transaction costs Automating order processing, Invoicing and approvals would free labor for value added activities Eliminating paper based systems lowered company’s labor cost Increase labor productivity significantly and invoice Reduced time spend on by cost reduced faxing, emailing,

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Dell Procurement Strategy. (2018, Mar 29). Retrieved from

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