Sample Thesis Paper
Dell follows the policies of build-to-order and just-in time for managing its supply and value chain. The inventory of Dell maintains in the suppliers books unless Dell puts up an order. Only one major player in the industry Intel threatens Dell to take its inventory before acquiring the final customers (Barney, Gaining Sustainable Competitive Advantage , 2001).
As soon as the order is matured the either over the phone or through electronic medium then the sales executive is empowered to manage the entire order and he/she is entirely responsible to sun the product chain and he/she ensures its delivery on time. The pricing of the company is also maintained and tailored through the demand forecasts of the company that is maintained on a weekly basis (Barney, Gaining Sustainable Competitive Advantage , 2001).
Dell has eliminated all the intermediaries from its value chain and this has helped the organization to save a hefty margin of 20-30% from the value chain. Taking orders from and from the internet and aligning the supply chain with order-taking system and assembly factories has helped the organization a lot (Achtmeyer, 2002). The direct selling model of model is integrated with the supply chain of the organization. The best part of their strategy is that they assemble 80,000 PC’s in a single day but they don’t have any warehouse. The entire operation of Dell is of 72 hours and the assembly factories hold inventories for a maximum of two days (Barney, Gaining Sustainable Competitive Advantage , 2001).