SUPPLY CHAIN MANAGEMENT
PRODUCT : LAPTOPS
Ali Amjad Rizvi
Case Study – Supply Chain at Dell
• Dell has integrated various operational
components like logistics, manufacturing,
distribution, inventory management to develop
an effective supply chain strategy.
• Dell has asked its distributors to keep inventories
within 15 minutes of manufacturing locations.
• Loss due to obsolescence is minimum
• Customers always get latest products
• Keeps them ahead of competition
Innovations at Dell
Product life cycle management
Data collected by questioning the
retailers in Pune
• What are the different steps in the supply chain
of a laptop?
• What is the mode of transport at each stage?
• Who insures the product at each stage?
• What is the mode of Payment?
• How much inventory is kept at each stage?
• When is the product dispatched from the
• How does the money travel from customer to
• United States
• Sent to assembly unit by Cargo
• Chennai Assembly unit
• Sent to Distributor by Blue dart courier
• Inventory is decided on the past fortnight sales
• Payment is done on either cash or credit basis.
» Parts are produced in US and being shipped to
Chennai assembly unit by AC cargo containers.
» This is done through MAERSK COMPANY
which is a general shipping company.
» Here the insurance is done by the exporter in
our case DELL, in case of damage occurring
» Here the parts are assembled according to the
configuration provided by the distributor.
» Configuration is finalized depending on the
demand in the market, which is a special
feature provided by DELL.
» The finished product is packed, sealed and
sent through courier, in our case BLUE DART,
to the Distributor.
» These are sent in individual boxes and not
clubbed together in a large container.
» The inventory is decided by the distributor on
the basis of past fortnight sales.
» That is how the number of products are
demanded, in our case 50 laptops are kept in
a warehouse behind his shop.
» Here the insurance is done by the distributor.
» The payment is either cash or credit.
» In case of credit, a credit cycle is determined,
which can further be increased on the basis of
the level of trust between them.
» Payment possible through EMIs
» Retailer further orders from the distributor,
according to the demand generated through
» After purchasing from the distributor the
retailer has to get the product insured against
any kind of damages.
» The retailer has a lower inventory than the
distributor since the product is sold directly to
Sample Product Specifications
Model : Dell Studio 14
Dimensions : 19.10 X 36.10 X 41.90 cms
Volume Weight : 4.82 Kgs
Density weight : 4.60 kgs
Data Collected from Pune Retailers
Employed in : Cybernet IT, Pune
Brief Profile: An exclusive HP-Compaq retailer
• Cybernet has two retail outlets in Pune—the 1,100 sq ft flagship
store and 400 sq ft satellite store—and a shop-in-shop at a
prominent mall in Pune.
• Cybernet’s revenues jumped from Rs 13.4 crore to Rs 22 crore in
05-06 with retail contributing nearly 50 percent, sub-distribution
providing 30 percent, and remaining coming from corporate selling.
• The robust growth was due to doubling of its sales of portables.
Cybernet recorded on an average monthly sales of 75 notebooks
and 30 desktops, tilting the scales in favour of notebooks.
Innovation by CyberNet IT
• Introduced mobile vans to reduce service
turnaround time to 4 hrs
• Payment of EMIs by collaboration with
• Uni-brand strategy selling HP-Compaq
• Doubled notebook sales and recorded a jump
of 85 percent in turnover
• Set up laptop service and repair centre for all
• Launched mobile service centre for faster
• Mr. Angad Prem
VP, House of Laptops
• Redington Warehouse
Shivaji Nagar, Wakde Wadi, Pune
• Mr. Ashok Taneja
Nehru Place, Delhi