Supplychain management has been increasingly in its operations becauseglobalization has made it easier to distribute goods and servicesfrom one continent to another in a quick way. The processing of theraw materials to finished products has become easier and faster as aresult of the advanced technology currently available inorganizations. (Chopra& Meindl, 2007).The importance of supply chain management is felt in the improvementof the collaboration and trust among businessmen who carry the supplychain operations. This collaboration leads to the increase in theinventory visibility and the movement of the stock. Good supply chainmanagement has led to the organization having a competitive advantageover its competitors because they can cover a wider market for theirproducts and also to get suppliers who distribute raw materials at alower price. These activities save the organization on expenses theyshould have incurred if they did not have the strategy (Chopra& Meindl, 2007).
Managingsupply chains effectively is an extremely complex taskparticularly in the global context due to the factors like
Stiff competition- Stiff competition has considerable influence in the distribution of products, and this forces the organization to incur extra expenses to enable them to be in the same level of competition, and this reduces the profit of the organization.
Exportation costs- When supplying products from one continent to another, there are costs they are charged with the ports and transportation making the profits to be gained to reduce.
Dollar inflation- Inflation in dollars makes it hard for the organization to adapt due to frequent changes and this affects the distribution as investors will supply more when the dollar rate is high and supply less when the rate of the dollar is low.
Different laws in different countries- Different countries have various laws making it had to know what is right in this country and what is wrong in another country.
Technology and economic condition of a given country- The technology advancement at the global level is significant making it had to be sure that the organization technology is high building the team to be flexible in the technology changes. The economic condition of the country determines what to supply and what not to supply. For instance, it’s hard to provide iPhone cell phones to African countries due to the level of poverty in them.
Thefactors to be considered in supply chain planning arethe external risks, managing risks, and the internal danger. Theexternal factors are the political factors such as traderestrictions, corruptions and the environmental factors like theepidemics. The internal factors are the warehousing and thetransportation costs as they affect the organization internally. Themanaging factors are the company’s implementation plans which areto be involved in the running of the organization (Weele,2010).
Themost current situation of Dell is that it is among the mostsuccessful businesses in the world. It is because of the fact thatthey produce high-quality products, and they offer quality servicesto their customers. Dell has been successful in its marketingstrategies. The fundamental reasons for dell’s success are thatthey are passionate social listeners, they have social mediauniversities, they turn customers into brand advocates, theirexecutives are social, and finally their community are involved andactive. Being passionate to their listeners has enabled theorganization to attract many customers as they are sure theirproblems will be solved. The social media institutions have allowedDell Company to get students who have the knowledge and who lateradvertise their products to the world. The strategy of turning theircustomers into brand advocates makes them win more customers. DellInc., has also ensured that it provides its goods at a relativelycheaper price as compared to rival companies. On the other hand, Dellhas also been thriving under high inventory returns. Moreimportantly, Dell Inc. developed an integrative healthcare sectorthat combined the software, hardware and services to improve theefficiency of mid-size doctors’ offices in terms of operations andmaintenance of health records (Casestudy, 2011).
Theresearchfirm Gartner hasconsistently selected DellInc. as one of the top five leading firms with a successful networkof supply chain.However,Dell Inc., has been facing some challenges, in its supply chain. Theissues and problems facing Dell’s supply chain are competition,increased cost of intermediaries, government interference, andtechnological changes. The rise in competition from big competitorshas made it hard for Dell to be on top in the market. Agents,brokers, and dealers have made the cost of sales to increase therebymaking the profit to decrease as planned. Government interferencewith the high rate of taxation has made it had for Dell to supplytheir products to other countries. Technological changes have becomea big issue in the market as the products they produce does not staya long time in the market (Casestudy, 2011).
DellInc. should improve the quality of its products. This means that thecompany should be parallel to the ever developing advancements intechnology by developing current and advanced commodities, Dell Inc.will ensure that it remains competitive in the market alongside otherrival companies. The company should also invest in its social mediamarketing strategies. The social media is one of the current andsuccessful business channels that link clients and developers in aconvenient and real time manner. This business model is still viableas Dell can maintain its image and reputation for a long time in themarket (Casestudy, 2011).
Theopinion to Dell is to ensure that the customers complaints aresolved, and the feedbacks are provided immediately. The companyshould develop products that are pocket friendly so that differentpeople from different walks of life can afford them. They should alsoensure that the products supply is regular to make the customers relyreally on the company. These opinions help the company to attract asmany customers as possible making it to always remain on top. DellInc. should also ensure that spare parts are easily available.Maintaining a given product is possible if only the spare componentsare easily accessed. Therefore, the clients will be satisfied iftheir purchased goods are well maintained and serviced without toomuch hustle.
Unfortunately,The Dell formula cannot work everywhere because different businessmodels require different approaches. It means that every companyshould have their own formula depending on their scale of operation.Not all companies may have the same capacity as Dell Inc. and hencerunning a given approach can run the company into bankruptcy. Themost important thing for a company is to remain relevant to itscapacity as growth is anticipated in the future.
Supplychain management has made it easy for businesses to distribute thingsfrom one country, thereby making it of importance globally. Theimportance of supply chain management in the global context is thatit allows people to get what they don’t have and also to balancedevelopment in the whole world. The supply chain managers shouldfocus on the security measures given the global nature of thebusiness because they need to ensure that the organization they areworking on stays on the top of the market (Waters,2010).
Chopra,S., & Meindl, P. (2007). Supplychain management.Upper Saddle River, N.J.: Pearson Prentice Hall.
Waters,C. (2010). Globallogistics.London: Kogan Page.
Weele,A. (2010). Purchasing& supply chain management.Andover: Cengage Learning.
Casestudy: Dell—Distribution and supply chain innovation. (2011).Retrieved 2 Feb, 2016 fromhttps://www.marsdd.com/mars-library/case-study-dell-distribution-and-supply-chain-innovation/