The Effect Of E-commerce On Dell
In order to understand the effect of e-commerce on Dell, we must see the interaction with each area of the supply chain. Take a look at indirect and direct procurement. E-commerce has influenced compliance and change management within the company. It was connected to existing ERP (enterprise resource planning) and MRP (material requirements planning) systems to calculate the exact amount of resources the company needs to purchase. Without having to spend much in input resources, the company can spend on developing new products and finalizing each step of the distribution system.
Believe it or not, e-commerce helped the company improve its product and service design. By gathering the information from its Web’s visitors, the company could have a general and details look at their target market, predict the new trends of using computers as well as meet the exact demand of its consumers. The design process would then be reduced, and both designers and engineers could interact thoroughly with manufacturers.
E-commerce surely impacted the manufacturing process. The information and solutions provided had helped the company to become more flexible and responsive to every change in the market. Mass customization was no longer a challenge when all statistics and researches were available. Therefore, it was effortless to calculate the demand and supply planning to improve overall efficiency. At that time, while other competitors struggled to lower the price and remain a profit margin, Dell had combined e-commerce and traditional software applications into improving operational proficiency. E-commerce was also expected to grant greater communication and collaboration in areas including e-marketplaces, collaborative forecasting, and replenishment.
By knowing the volume of demand and possible orders before coming into the production process, e-commerce had brought solutions to the company’s fulfillment and e-fulfillment factor. E-commerce had the capability to digitalize information, follow up orders in real-time so as to accelerate the distributing process. It also virtualizes inventory, allowing multiple parties (customers, retailers, wholesalers, and even manufacturers) to keep track of the products. While suppliers could process the customer’s demand information, customers can receive faster feedback on the orders’ status. This later was proved to contribute greatly to the satisfaction of the customer’s buying process. With the improvement in real-time tracking, it was no doubt that Dell had gained many competitive advantages in the service and support section. Together with both returns and repairs process was also digitalized, customers support we’re able to assist and deliver accurate responses to people with concerns.
E-commerce also created an e-working environment for the staff. This was an area with an immediate impact on the supply chain of the corporation. Dell was not the first, but they had successfully taken advantage of e-working by giving their workers access to a world of information, giving them re-working tools including employee portals, knowledge management systems as well as computer-based training courses. With the evolution and widespread of email and its usage in the working environment, the staff could work across boundaries of time and space. It was no longer a burden managing complex events and issues occurring in the supply chain.
Overall, e-commerce technology had proven to provide accurate information visibility throughout the supply chain. With the combination of production planning, scheduling, inventory control, and procurement process, the logistics loop was completed. Over time, e-commerce could have a more significant effect on SCM when companies and corporations adopt this solution more broadly.