Value Chain Analysis of Dell

Dell Technologies Inc. is an American technology and computer-related products and services providing multinational company. Michael Dell started the technology computer company in 1984. Today, we’ll discuss the value chain analysis of Dell supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Substitutes of Dell

• IBM
• Toshiba,
• Lenovo,
• Hewlett Packard Company (HP),
• Sony,
• Samsung
• Microsoft
• Apple
• ASUS

The Value chain analysis of Dell supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of Dell value chain analysis company example as follows;

Value Chain Analysis of Dell

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Dell supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Dell

Some of the five main primary activities in the value chain analysis of Dell supply chain analysis are as follows;

Inbound Logistics of Dell

I-Supplier Network

Dell deals with thousands of suppliers and supply chain partners in various categories for the production of final product. They’re material suppliers, finally assembly parts and components, and original design manufacturers. However, the computer manufacturing and tech company is highly transparent about its suppliers; the complete list of suppliers is given below in the references section.

II-Supplier Regulations

In order to ensure the quality of material supplies, components, and equipment; Dell has setup clear guidelines, quality standards, and regulations for suppliers. The tech company makes sure to collaborate and coordinate with suppliers and vendors that comply with the brand’s regulations and standards. The supplier regulations focus on the following areas;

• Appropriate working hours of approximately 60 hours per week with no mandatory over-time
• No child and forced labor in the suppliers’ network
• Protecting the interest of the most vulnerable working class in various countries worldwide
• Developing a better relationship with suppliers and supply chain partners; conducting training sessions for suppliers’ employees to improve their skill and expertise
• Improving the lives of ordinary workers by improving their tech skills
• Making sure safe working conditions for workers in the suppliers’ facilities with no or limited risk of health and following the complete safety protocols

III-Responsible Sourcing

The supplier regulations of Dell also put emphasis on responsible sourcing of raw materials, suppliers, equipment, and components. For mineral sourcing, the company makes sure responsible mining in those areas that are conflict-free and have limited risks attached to it. It focuses on the following areas;

• Have certification of OHSAS 18001 and ISO 45001
• Safe usage of chemicals and no hazardous chemicals in the company’s suppliers’ network
• Ensuring responsible products by building alliances with the chemical management task force
• Auditing occupational hazard tests across the supply chain network and raising awareness about health and safety issues

Outbound Logistics of Dell

I-Distribution Network

Dell has partnered up with authorized retailers along with its own network of distribution centers. The company also deals with 3rd party vendors and distribution partners, and it plays a key role in delivering and distributing the finished products to the end customers.

II-Multiple Transportation Channels

Dell employs multiple transportation channels and mediums for the distribution of its finished computer products and supplies. Multiple channels help the company to decrease the wastage and carbon emission rate. The green logistics and transportation strategies help the company to have a limited impact on the environment.

• Choosing the right and best route for delivery
• Employing the right transportation medium
• Ensuring not to waste resources and time

Operations of Dell

I-Multiple Operations

Dell engages in multiple operations and processes for the production and manufacturing of computers. Precisely speaking, the tech company only assembles the components and parts manufactured by other suppliers’ companies. In order to gain a business competitive edge, the company follows a higher level of product customization strategy. Some of the main stages involved in Dell operations and processes are as follows;

A-Order Processing

• Receiving orders from the salesmen
• Credit clearance

B-Inventory & Vendor Management

• Requests and ordering material, parts, and components from suppliers
• Suppliers ship the material parts and components
• Dell’s assembling plant receives the material

C-Production

• Picking orders
• Scanning the parts with barcode scanners
• Assembling standard parts
• Installing custom parts
• Testing for the right configuration of parts
• Loading software and testing applications

D-Order Fulfillment

• Adding mouse, keyboard, documentation, and other accessories
• Organizing products based on the destinations
• Loading finished goods onto trucks and ships to the logistics hub
• Integrating monitors of non-Dell
• Shipping customers

Marketing & Sales of Dell

I-Personalization & Customization

Offering personalized and fully customized finished computers is one of the main elements of Dell’s marketing and promotional strategy. It allows the company to satisfy the customers’ orders based on their precise needs and requirements. However, the company’s web platform helps the company to place fully customized orders online by providing multiple options to choose from.

II-Direct Sale Model

Dell follows the direct sale model where the company sells its tech and computer products directly to the end customers on its web platform. It allows the company to maintain a limited inventory cost, no overproduction, and only produce the products whatever the customer wants.

Services of Dell

Dell puts a great emphasis on customer support service. In order to provide a great customer experience, the tech and computer company offers a wide range of services;

• Customer support service
• Technical support
• Warranty claims
• Repair and maintenance service
• Online forums

Supporting Activities of Dell

Some of the main supporting activities in the value chain analysis of Dell supply chain analysis are as follows;

Infrastructure of Dell

Dell has established a strong infrastructure comprising of production and manufacturing plants, components manufacturing suppliers’ companies, distribution centers, and logistics. Well-developed tech and IT infrastructure helps the company to smoothly perform its operations and provide computers worldwide. The tech has assets net worth of roundabout 90 billion USD as of 2024.

HRM of Dell

Dell has a workforce of approximately 133,000 employees and workers. The human resource management department of the tech company plays a key role in managing such a large workforce. However, it also helps the company in recruiting and building a diverse workforce, creating a tech workplace environment, and promoting women’s empowerment by offering equal employment opportunities.

Technological Development of Dell

Technological development is highly significant to the tech company Dell. According to an estimate, Dell invested approximately 2.779 billion USD in research and development. The objective is to innovate new parts and components, bring efficiency to the existing processes, and gain a competitive edge over competitors in the tech industry.

Procurement of Dell

Dell is highly careful and cautious about responsible sourcing and procurement of raw supplies, minerals with no conflicted mining, and practices of component manufacturing suppliers. Complete transparency of the supply chain processes and procurement methods helps the company strengthen its brand image and attract the attention of new customers.

Conclusion: Dell Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of Dell; we have realized that Dell is the world’s leading tech giant computer manufacturing company. If you are learning about the Dell value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.