Resource Management and the Supply Chain in Computer (Dell)
As technology arises, the computer market still surges as the most cost-effective industry globally. Computers are produced in a way that it needs resources to operate. They need supplies for them to end up making one computer. Using different brands of supplies inside a computer, it is a wonder how these computers survive successfully in the market especially these days.
Dell Computer was hailed as the only desktop computer manufacturer that was making money in the early 2000, as stated by Hall (2000). The company said that it was because of being directly involved with their consumers’ needs and making their service available to all the costumers anytime, anywhere. Plus, they made their services and the selling available online. The said company didn’t let any other company in between too, where the idea of going direct came from. Meaning – only Dell and their costumers making business with each other. Dell used the strategy of becoming a low cost provider, making a best direct costumer experience, and having virtual integration. Thus, the computer manufacturer did not just made things and sold them, but they also made their service available to their customers, using that something that they had made.
Until 2006, Dell had been a loyalist to its sole supplier, which was Intel. For a long period of time, the partnership had never taken into account that it would someday be broken. But, due to technological advancement, Dell has to go forward and push Intel off the pedestal of becoming its sole supplier. Dell announced on 2006 that it will begin using the Opteron processor from Advanced Micro Devices (AMD) in its high-end server line. It was a negative progress for Intel however, but it left Dell no choice because the decision was made due to technological demands. For the company, business has always to be business, it seeks for more and it welcomes changes to become bigger and even better.
In 2007, Dell started to source components from China to increase growth in emerging markets. It had already been a trend that the companies that wish to grow globally use resource management and supply chain. Resource management and supply chain gets in in this phase of growing of the Dell Company. It sourced components from China in order to have a partnership between their company and the country, while continuing on gaining raw materials from the said country. This is a leap forward for the company, making itself emerge into a bigger market and making the supply chain cost-effective, knowing that China offers low-cost materials.
Dell may have used a lot of brands in the market making different resources in order to go forward and only forward. It has been known to use E-procurement in gaining customers and providing service to the buyers of their products. Yes, it always makes something out of an effort. It might be a great loyalist, but that happens in all kinds of business these days, especially when it is about for a change. Dell is high-earning; it never backs off and makes itself behind its other competitors. It has used all other sources that are available in the market and it also moves in a fast clock speed.
Although other companies get affected by the fast-paced marketing, that is never a question to Dell. It uses what the trend demands for. Technology spins in a wheel that does not come to a halt, thus Dell spins that way too. It uses the resource management in order to organize its raw materials, because in the computer industry, it’s always about the raw materials. One single defective part of a computer makes a computer malfunction too. It’s always that way in the computer business, so it’s a must that whatever in that kind of business must seek for a way in which the components are always in good condition. Supply chain is relatively for the benefit of the company too. It follows a process wherein a company takes to renovate raw components into the final product, in Dell, it’s a computer.
Some other companies may have adapted to the way that Dell manufacturer had run its business with its alliance and its customers. Other companies are never behind, they always have the same or other strategies for them to develop their products and compete in the market. But, for as long as there is a competition, there will always be better products and better distribution. What Dell has to offer is the low-price and service availability to the customers. That is the main reason why Dell never happens to be at the back of all other computer manufacturers. It does not just seek for change, but it asks their purchasers if there has something to be changed.
References:
Hall, R.W., 2000. Distributed Excellence and the Dell Model. Target, vol. 16, second quarter, pp. 6-10.
Xing, W., 2008 . Dell to boost local sourcing to reduce costs, Bizchina, [online]. Available at:<http://www.chinadaily.com.cn/bizchina/2008-03/21/content_6556634.htm> [Accessed 23 May 2011].
Briefing.com, 2006. Dell Bell Tolls for Intel. [press release], 19 May 2006, Available at: <http://www.phildata.com/products.asp>[Accessed 23 May 2011].
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