Value Chain Model – Dell Essay Example

Dell's value chain model allowed for improved capabilities across its functions. The inbound logistics capability included electronic movement of order configuration to the manufacturing center, and high-volume cell production lines at the operations end. This improved plant capacity and integration of DellPlus program components, resulting in reduced quality checks. For outbound logistics, shipping was contracted out to multiple shippers, and PC monitors were shipped directly by the shipper, saving $30 in freight costs per display. Dell reduced the number of human touch points during assembly to less than 15 from 30 per drive, which decreased the failure rate for Dell PCs by 20%. Suppliers were located less than 15 minutes away from the plant, and the plant held a bare minimum of 13 days of inventories, far less th