Most supply chain models start out with simplicity in mind. They are not generally designed to be complex. Dell started in a dorm room. Some companies start from a one car garage. Some company divisions start in an existing product lab. Some companies globalize. Some companies acquire other companies. When business is good and growth happens, supply chains become complex. Since complexity usually aligns with higher costs, most companies have an ongoing focus to simplify their supply chain. This can often be accomplished internally via six sigma or LEAN process improvements. However, many times these efforts lead companies to ask their partners or vendors for help.
Dell has a reputation in the industry for managing a LEAN supply chain. This ongoing process involves identifying what value added work should remain with Dell and what work is more efficiently provided by a vendor. Inventory management and facilities management are often reviewed for cost savings. The ideal supply chain is short with appropriate flexibility to meet customer requirements. Weighing the options between cost, quality, availability and sustainability drive decisions.
OEM customers are often reviewing their supply chains and asking us for help reducing complexity. Many don’t realize the extent of our supply chain capabilities to support them. The more work that we can do for them before they receive the product, the shorter and simpler their supply chain becomes. This may lead to less work being done in their integration process, fewer logistics steps to delivery or cost effective globalization. Our procurement and inventory management solutions even help our customers with their working capital position. In all, there’s plenty to consider when choosing a partner to support supply chain simplification.
What does supply chain simplification mean to you?
Let’s continue to explore this topic together on this blog as I bring forward industry articles and customer engagement examples in the weeks and months to come.
Learn more about Dell OEM Solutions at www.dell.com/oem.