International Operational And Logistics (REPORT) Assignment

International Operational And Logistics (REPORT) - Assignment ExampleIn dingle, Suppliers are viewed as the integral part of operating business and a backbone variable for success. The last part of repot analyzes an improvement proposal that could possibly improve the logistics and provide chain of the company thereby enhancing its competitive advantage. The proposal focused on use of information technology in supply chain forethought of dell through Oracle 10G and use of e-commerce in its supply chain management. Introduction Dell was incorporated in 1994 by Michael Dell while he was a student at University of Texas, Austin. From its very first initiatives, set selling modal valuel was adopted. In the beginning PCs were sold over the ph adept and they were customized fit to customers specifications. Dell returned to its direct selling model after using the retail channel from 1990 to 1994. In mid 1990s, the company grew rapidly, thus becoming number one PC seller in the US and number two worldwide in 1999. Dells success continued over the following years, only if it was not able to avoid the crisis in PC industry in the new millennium. Dells growth rate fell, resulting in the fall of its convey price. However, over the time, Dell managed to remain a highly successful company, and its growth rate continued to outperform the industry as a whole. Dells strategic choices and ways of realizing those choices have played an effective role in story Dells success. The supply chain management of the company is the key element in its successful business model. The core element of the companys business model is its direct gross revenue model, referred as direct mode, with the build to order strategy. Current Operations and Supply Chain Business Model This differentiated model of dell help it creates a niche in the distribution channel and eliminates the entire mid channel members to arrive at cost leadership position in the industry. The basic principle of Resourc e base view is that the competitive advantage for any particular organization completely depends upon the resources which are available at any companys disposal. It is a management tool to determine the important resources available for any organization. It is very important for success of the organization that these resources are valuable and are not imitable. The direct sales model refers to the fact that the company does not use any retail channels for selling its products, but sells its products directly to its customers through its corporate website, Dell.com. The above pulp shows hot the direct model of Dell was different from the indirect distribution channel of the rest of industry. In its direct sale model, the intermediary steps that supply cost and time are eliminated, and the company is directly able to link with its customers. Dell directly sells to all its customers, regardless of a home-PC to worlds largest corporations. The direct relationship with individual cust omer creates a great source of competitive advantage for Dell. This creates a valuable information about the end customers, and thus Dell knows who are the end users of their product, what they have purchased from the company, what are their future preferences, a fact that allows the company to stay closer to their customers by offering add-on products and services. Company distinguishes cardinal customer segments, namely large organizations,