Operations Management at Dell Corporation

Paper Summary:

In this article, the writer outlines the major operations management challenges and solutions implemented by Dell Corporation towards accomplishing its strategic objectives. The writer discusses that information gathering and sharing is the key to Dell's virtual integration and direct business model strategies. Further, the writer points out that Dell's operations management techniques provide advantages of low cost, high quality and superior customer service, due to short lead times, a broad range of products, customized on demand. The writer discusses that the company's dedication to inventory management, build-to-order products, and aggressive cost-cutting has allowed it to become the worldwide leader in PC shipments. The writer maintains that despite its success in other areas of operations management, Dell must work to bolster its basic vanilla image with its direct consumer segments, and to improve its ability to keep pace with product innovations and technological changes. The writer concludes that having ventured, once again, into retail store outlets, it will be worthwhile to monitor how well Dell's manages its inventory and distribution operations within that channel and the resultant effect on its direct-to-consumer (Internet) sales.

Outline:
Introduction
Strategy
Tactics
Summary
References

From the Paper:

"A primary key to Dell's success is its strategy of "Virtual Integration", which uses technology to share information freely and in real time with all internal departments, as well as with vendors, customers and field service providers. Such collaboration equates to superior levels of efficiency and productivity in the realms of customer service, supplier partnerships, mass customization, and just-in-time manufacturing. Dell contends that rapid information interchange also enhances the company's knowledge about emerging technologies, helping speed time to market, allowing customer demands to be met faster and with more efficiency, and providing substantial cost advantages."

Sample of Sources Used:

• Chase, R., Jacobs, F., and Aqualino, N. (2006). Operations Management for Competitive Advantage.11th ed., Pg 136. NY, New York; McGraw-Hill Irwin
• Jacobs, D.G. (2003). Anatomy of a Supply Chain. Supply Chain Technology News, March 2003. Retrieved 28 Aug 2007 from http://jobfunctions.bnet.com/thankyou.aspx?authId=G4rNqrqTAA3GPnHR0Q8mJLqL/IH3v2Wa+qj8YIT66AMx29ot7Pknm+E3n//yEFc8&&docid=74180&view=74180&load=
• Krazit, Tom (2005). What's Wrong with Dell? InfoWorld, IDG News Service. November 1, 2005, Retrieved 4 September 2007 from http://www.infoworld.com/article/05/11/01/HNdellproblem_1.html
• Magretta, J. (1998). The Power of Virtual Integration; Harvard Business Review, March-April, 1998, Cambridge, Mass
• Wharton (2002). The Failure of Customization: Or Why People Don't Buy Jeans Online Published: March 27, 2002 in Knowledge@Wharton. Retrieved 3 September 2007 from http://knowledge.wharton.upenn.edu/article.cfm?articleid=535

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