Dell, Inc.'s closed loop supply chain for computer assembly plants

Many authors and researchers cite Dell’s supply chain as a model of excellence, yet few look at the entire closed-loop supply chain and the prevalent inventory and logistics techniques that enable this complex process to work. The techniques reviewed include – postponement, modularity, vendor managed inventory, supply chain partnerships, and demand management. The analysis involves examining how Dell’s use of an assortment of techniques that support build to order operation affect each other and how these approaches play a role in enabling the Dell Supply Chain as an industry hallmark of excellence. The forward and reverse supply chains are mapped out as a series of process maps and explained within the framework of Dell’s world-wide operations. Dell’s supply chain excellence suggests the need to focus on supply chain efficiencies as a means of building customer value and a firm’s need to judiciously examine its situation and capabilities before implementing any particular set of inventory and logistics approaches similar to the ones used to support Dell’s supply chain operation. Some of the missing elements in Dell’s reverse supply chain present some limitation to the study. As a result, what is proposed is a close to definitive model based on available data on Dell’s closed-loop supply chain. Dell’s future threats and opportunities are identified particularly in relation to growing competition and expansion of services. These have implications for managers of other supply chains as it is clear from Dell’s success that supply chain excellence does correlate to financial success. The study provides an in depth analysis of a proven closed-loop supply chain that is replicable and taken two decades to get where it is for the Dell Corporation. The analysis makes the drivers behind Dell’s operational and market success explicit and shows that adopting a combination of prevalent inventory and logistics approaches for breakthrough improvements in the supply chain requires sustained efforts and careful planning.