Lead time reduction and, consequently, cost efficiency are hard to achieve without smooth information flow. Recommended partial implementation of Dell direct model, i.
Based on that experience, I wanted to share my eight most important pieces of advice for those being asked to prepare a business case for their supply chain investments.
Ensure clarity on the strategic objectives of your organization. Any sizeable supply chain investment draws the attention of the senior leadership. Rightfully, your leadership will look to understand how the initiative supports the overall strategic objectives of the business.
Being well versed with these objectives and able to demonstrate how the proposed initiative will support them is paramount to getting buy-in from your executives. Show how the initiative supports strategic objectives. Are your executives measured on servicing strategic customers better than your competition and reducing regulatory risks?
If so, your business case will need to show how you can align with these objectives. By enabling end-to-end visibility across your entire network, you can put a flashlight on looming regulatory risks. Make strong links between the strategic objectives and the enablers as directly and explicitly as possible.
Use analysis and anecdotes to craft a compelling story. If your business case comes down to driving a reduction in Dell case on supply chain or an improvement in employee productivity, providing sufficient operational data analysis along with anecdotal evidence of how the initiative can make a difference will help provide a compelling backdrop.
Even a simple segmentation analysis on your customer or SKU portfolio, or bringing together your demand, supply and inventory in one place can be eye opening. For example, if 50 percent of your on-hand inventory is tied to supporting products that represent only six percent of your gross sales, you may have a prime opportunity.
Apart from data driven insights, sharing anecdotes about the risks of not doing anything can be a strong motivator. Factor in competing projects.
If you sum up all the business cases claiming inventory reduction, organizations with such business justification should be running on negative inventory!
Understand your stakeholders and ensure their buy-in. A young logistics executive who was pitching for a transformation project once lamented to me about how his business case presentation to his leadership team failed.
It turns out this young executive worked very hard and analyzed a lot of data to put together what he thought was a compelling, objective business case. As part of his business case, he proposed a 12 percent reduction in inventory while enabling a 1.
It turns out the executive in charge of sales who was responsible for delivering revenue growth was in the room with his peers and saw the business case for the first time. The project manager was asked to go back to the drawing board as the commercial executive challenged his assumptions.
The young executive in this case could have avoided the agony by testing and validating his assumptions with the commercial lead ahead of time. Identify your sponsor and let them bat for you.
The aforementioned situation could have been avoided if the young executive had engaged the help of another executive with significant interest in the success of the initiative; someone who had enough gravitas and a knack for navigating the organization.
Building consensus for change can be a delicate process. A sponsor can be of great help! It is your business case. While your company may have engaged external consultants to help you build a business case, you are the owner of the business case. So, you must understand, own, and stress-test every assumption driving the business case.
Use multiple triangulation points so you gain confidence in the business case. Measure the value to ensure success and sustain momentum. Your business case with all its stated objectives and enablers should serve as a guidepost for successful project execution that can be sustained over time.
However, when an organization struggles with change management, it can be of great help to refer back to the business case to remind stakeholders of the overall project objectives. When you measure, socialize and celebrate the value a project has delivered to date with both your team and broader audiences within your organization, it will prove to be very meaningful and fulfilling for your entire team.• Value Chain is intended to extend Dell’s successful direct-sales approach back intothe supply chain• The goal of it is increasing the speed and quality of the information flow betweenDell and its supply base• The portal, regardbouddhiste.com acts a secure extranet for Dell suppliers tocollaborate in managing the supply chain• Dell.
Case Study: Supply Chain Management at Dell, Dell's Direct Model Dell Inc. pioneered the Direct Model of selling PCs directly to the consumers. How it enabled Dell to manage its supply chain efficiently is discussed in this case study.
Dell Computer Corporation a leading direct computer systems company was founded in The Lessons from Dell's Supply Chain Transformation I had a good time in Round Rock, Texas.
A few weeks ago, I was there along with Dr. David Simchi-Levi of MIT to film our Videocast that was broadcast Wednesday on Dell's Supply Chain Transformation. Dell can introduce a new product to customers over the internet as soon as the first model is regardbouddhiste.com Chain Management: An Analysis of Dell¶s Value Chain Dell has used its direct sales and build-to-order model to create this exception supply chain by integrating everything from the beginning to the end process.5/5(1).
Cathy Roberson is a senior supply chain analyst at Transport Intelligence, who focuses on e-commerce, startup logistics companies and technology. She tweets at @ cmroberson06 and blogs at Global Supply Chain . Supply Chain Management: Strategy, Planning and Operations Sunil Chopra, Peter Meindl, Prentice Hall College Div, 3 rd ed.
() Introduction to Operations and Supply Chain Management.