Successful organizations have strongly integrated setup of supply chain. In today’s world of neck to neck competition, no organization can survive without having strong and quick SCM. Internet has revolutionized the whole world and has facilitated the business world in a magnificent way; similarly it has enhanced the role of SCM.
Internet has modified the traditional SCM by ensuring flawless ways of communication at every step of production. Internet fosters the procurement process by assisting JIT inventory, quick process of placing orders, better tracking of inventory, accurate delivery of orders according to the specifications and superior support facility for customers. Internet pace up three major stages of SCM that are; Process of Order fulfillment, the life cycle of product, and finally the customer support stage. Furthermore, Internet helps to establish better reliability, security and scalability.
Traditional SCM of Dell Corp lacks advanced and modified tools to deal with increasingly uncertain and competitive marketplace. There were three major areas which used to pose inefficiency in the SCM process; Focus on operation, lack of flexibility and finally one dimensional scheduling. Dell is among the leaders in producing computers of all sizes and configurations. Dell is maintaining its unbeaten position through its e-business network and direct customer contact via internet (Sunil, 2010).
The SCM of Dell uses internet with integrated software to minimize inventory at hand and place orders to its suppliers through estimated figures provided by the software according to projected demand. Thereby it reduces the cost to keep inventory, ensures proficient management of material and fosters healthy relations with its clients by keeping a close contact with them through internet. Technology of internet has enabled Dell company to keep its globally located employees connected and in touch with customers to produce customized product according to the specifications given by every single client.
Almost 90% of the procurement process in done online in Dell and this increases the alliances with suppliers and clients. Internet has also brought changes in the workplace of Dell Company and every step and process is done on software with less of human touch. E-business models implemented by Dell prove to be helpful in carrying out whole supply chain backed by facts and figures instead of self made speculations ,reducing the possible waste of materials, enhances the flow of production and responding time to customers complains. Dell Corp uses e-Procurement which allows it to procure and material through internet. This enables the company to handle various value-added services including warehousing, payments, transportation, customs clearance, documentation and quality assurance. SCM based on internet offers more rationalized delivery and pricing of product. It shifts the power to customers from vendors and end product is more close to what is desired by the market.
Chopra Sunil, (2010),” Supply Chain Management, 4/E”, New Delhi, Pearson Education India.