Affiliations: Opus College of Business, University of St. Thomas,
Mail # TMH 343, 1000 LaSalle Avenue, Minneapolis, MN 55403-2005, USA. Tel.:
+1 651 962 4350; E-mail: [email protected]
Note: [] Corresponding author
Abstract: Many authors and researchers cite Dell's supply chain as a model of
excellence, yet few look at the entire closed-loop supply chain and the
prevalent inventory and logistics techniques that enable this complex process
to work. The techniques reviewed include – postponement, modularity, vendor
managed inventory, supply chain partnerships, and demand management. The
analysis involves examining how Dell's use of an assortment of techniques that
support build to order operation affect each other and how these approaches
play a role in enabling the Dell Supply Chain as an industry hallmark of
excellence. The forward and reverse supply chains are mapped out as a series of
process maps and explained within the framework of Dell's world-wide
operations. Dell's supply chain excellence suggests the need to focus on supply
chain efficiencies as a means of building customer value and a firm's need to
judiciously examine its situation and capabilities before implementing any
particular set of inventory and logistics approaches similar to the ones used
to support Dell's supply chain operation. Some of the missing elements in
Dell's reverse supply chain present some limitation to the study. As a result,
what is proposed is a close to definitive model based on available data on
Dell's closed-loop supply chain. Dell's future threats and opportunities are
identified particularly in relation to growing competition and expansion of
services. These have implications for managers of other supply chains as it is
clear from Dell's success that supply chain excellence does correlate to
financial success. The study provides an in depth analysis of a proven
closed-loop supply chain that is replicable and taken two decades to get where
it is for the Dell Corporation. The analysis makes the drivers behind Dell's
operational and market success explicit and shows that adopting a combination
of prevalent inventory and logistics approaches for breakthrough improvements
in the supply chain requires sustained efforts and careful planning.
