Dell is the largest computer systems company with a product line including desktop computers, notebook computers, network servers, workstations, and storage products. We will be demonstrating how Dell has integrated their core competencies into the supply chain as it is one of the key factors contributing to dell’s major success. As Dell offers personalised products and therefore handles and manufactures each order individually, we will not be presenting their supply chain structure in the original chronology.
We will be starting by illustrating the placement of the order and further continuing with the procurement of material as well as the manufacture and the handling of the end product. Customers have the option of ordering their desired Dell product either online or over the phone. Before confirming any order, Dell checks the customer’s payment details as well as feasibility of the order regarding their own resources. As soon as this stage has gone through successfully, every order will be sent to the manufacturing plant in Texas.
This close relationship has been formed to be able to satisfied personalised customers needs and provide them with a convenient service and in return to get immediate responses on product queries or quality issues to continuously upgrade their handling process. The 2nd tier suppliers of the single components produce their goods in Southeast Asia, from where the component are sent to Texas (1st tier) as the completion of the products are all manufactured there.
Every individual product will than be shipped from Texas to all over the world within an aimed time period of five days. A main benefit won out of this structure, is the high level of control of time, quality and variety of products, out of which Dell has formed their core competencies such as a their flexibility, reliability and fast processing. “… by sharing dynamic inventory information with suppliers, Dell can work both on the input and output ends of the supply chain to match demand with supply” (S. Chopra and J. A. Van Mieghem, 2000)
Dell has efficiently implemented their core competencies into the supply chain which has provided them with a strong competitive advantaged, as customer’s requirements of a convenient experience added with a personalised, fast and reliable approach, have been fully satisfied. British Airways is the largest airline as well as flag carrier of the United Kingdom. As the organisation has implemented the core competencies of every element within the supply chain very efficiently, we will be presenting British Airways as one of the examples.
In the model of British Airways the 1st tier manufacturers are mainly Boing and Airbus, who are responsible of producing nearly all their aircrafts using Rolls Royce engines, which therefore is the 2nd tier. As British Airways specially emphasises on high standard of quality when it comes to their aircraft production, they cautiously choose their suppliers within the supply chain, to be able to offer their customer the best possible safety measure and comfort.
Therefore the high level of quality forms their core competence in this part and affects supply chain design in regards of the careful selection of their suppliers in order to deliver their core competence. As British Airways has recognised the current importance of technology in our society, they have adopted their supply chain accordingly to be able to provide their customer with an adequate service. Flight tickets can be booked conveniently and fast online at any time of the day, as well as over the phone or through travel agencies.
Their competent and reliable service on ground also includes the confirmation of tickets, seat reservation and early check- in, which is followed by the on- board offering of high quality food, beverage, assistance and the choice of different classes. Furthermore for any kind of issue British Airways has a hotline and email addresses through which they are able to contact the organisation. “The shift in the efficient frontier on adding the Internet to available channels will vary by industry… For example, going online would benefit an airline more than a travel agent” (S.
Chopra and J. A. Van Mieghem, 2000) To be able to achieve a competitive advantage the Airlines has to stay consistent through out the whole management of the supply chain to deliver the core competencies. In total British Airways offers their customer a high quality, comfortable and convenient service by concentrating on integrating their core competencies of each component into the supply chain as they do very successfully. Toyota Motor Corporation is one the biggest car production company in the world which was found in 1937.
The brand Toyota has been able to established and maintain their success over several decades by innovatively incorporating their core competencies in the supply chain. As the Toyota Corporation focuses strongly on the quality of their cars, they undertake the processes of design and manufacturing themselves to stay in control of their product and service. Many Japanese companies (such as Toyota)… write their own software to aid the design and manufacture of their products… we believe that it is part of an important pattern in how advanced companies design and produce their products.
Design software is one of many elements of what we call the “manufacturing infrastructure” to distinguish it from the technologies that comprise the products themselves. (C. H. Fine and D. E. Whitney) Therefore they possess strong internal resources who engineer unique systems and designs which only Toyota cars are equipped with. For instance at the moment Toyota is focusing on future Hybrid cars and they are not only the first company launching this product, in fact they are also the only manufacturer producing this car.
Toyota has recognised the continuously growing need and interest on becoming environmentally friendlier and has cleverly token over the niche market. Their core competence clearly lies in the originality and quality of their production which deservedly enabled Toyota to obtain such high revenues. As Toyota has factories all over Europe, America and Asia, they are able to provide their customers with their products in a very short period of time, which forms another core competence that makes Toyota cars highly competitive.
Wisely chosen retailers are located near by the customers, to provide them with the needed assistance and the convenience of finding them close by. As a whole the organisation Toyota definitely knows how to satisfy their customer needs and make full use of their ability and knowledge, by integrating them correctly into their supply chain. They have been able to deliver their capabilities as their original and high quality products as well as a convenient service consistently throughout the entire process of their supply chain and have adapted the structure according to their core competencies.