Paper Example. Supply Chain and Logistics Management

Logistics involves the strategies and other processes that a product passes through from its point of production to its final destination which is from the supplier or producers to the final users who are the consumers. The process through which a product undergoes is called the supply chain. Dell is a world's renowned manufacturer of electronics such as computers and laptops, which are of high quality. The company, however, has several competitors who deal with almost similar products such as Apple Company, and Samsung, among other competitors. To survive the competition in the industry, Dell Corporation must, therefore, come up with creative strategies that would help to keep it relevant in a market that is full of stiff competition. At this point, this paper will compare the supply chain and logistics innovations that dell uses with those from its competitors, such as Apple.

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Invention and creativity are essential determinants of the success of any company as they lead to the distinction, which leads to revenue increment. Dell's innovative idea that is integral and has aided the company to remain at the top of the industry is the application of direct sales to its consumers (Furey & Friedman, 2012). As compared to other companies in the industry, Dell manufactures only the computers and laptops that have been ordered, which is converse to other companies that make huge volumes of gadgets even without order. Dell allows the customers to place orders on the computer they want, and the company produces them as per the requests from the clients incorporating the features that the order captures. Upon completion of these orders, the computers are then transported and delivered to the clients. Dell competitors such as the Compaq Company apply the old method where they make their products and send them to the market places. However, the company is contemplating to use the direct approach that the Dell Company applies (Furey, & Friedman, 2012).

Among the emerging supply chain and logistic factors is what the manufacturers have been using, the forecasting model. This is a model that allows manufacturers to predict the market and produce their products according to what they forecast. The method was not all bad in other instances because it would make the manufacturers create several gadgets that they would sell according to the prediction. However, projecting is not always the right way of planning for the supply and logistics of a company. For instance, the manufacturer may anticipate a rise in market demand of the product, therefore, producing more of the products only to take them to the market and fails to attract customers. It would be a risky method as the gadgets that are not sold would be rendered waste, and massive losses may be incurred. Through the application of this model, a forecast may indicate a reduced market demand making the company produce fewer devices only to find out that the order was high. With the few devices, the sales will reduce, and the profit of the company may reduce.

The other method that negatively affects manufacturers is the one that most companies apply where they produce vast numbers of devices and sends them to the market to look for customers. The method may adversely affect such companies by making them have an overload of the inventory due to the failure of their product to sell as the customers had not placed orders. Additionally, the company may produce computers that do not have specifications that the consumers may want. As a result, the company may have a reduced sale, and the other machines may not get buyers, and the firm is left with large stock that will not help them in any way but instead make them incur heavy losses. It is for these reasons that the Compaq Company finds it useful to shift into the direct sale as used by the Dell Company. (Furey, & Friedman, 2012).Question 4

Market research is an essential tool that every corporation should apply to identify market factors that may affect individual businesses. These researches help in identifying threats and opportunities available, which the companies may use to ensure that they remain relevant and not to fail. There are other significant benefits that large computer companies enjoy as a result of market research on various aspects. Some of them include reducing the risks for those businesses, such as ensuring that the company does not produce what the market does not need. Market research allows companies to identify the products that are necessary for the market to avoid making those that are not required in the market. When a company produces certain brands of computers that have a specific feature that is not needed in the market, the company may suffer losses as the customers may not have an interest in such gadgets. Through market research, it is possible to identify what the customers want and make products fitting their preference hence preventing loses. Market research also provides opportunities for businesses to thrive. They also identify threats in the market, client preference among several other aspects that are integral in the survival of a business.

In conclusion, logistics and supply chain are critical aspects of any business as they determine the success of the market, and they can also determine the failure of the venture. Appropriate strategies in logistics and supply chain management assist companies to succeed; for instance, the approach that the Dell Company uses in the production of its computers plays a central role in the success of the company. The strategy is appropriate in such a way that even the rival companies are willing to dump their traditional approach to embrace the direct sale strategy to ensure they succeed.

References

Furey, T., & Friedman, L. (2012). Channel Advantage, The. Routledge.MacNeil/Lehrer Productions (Producer). (1999). Your computer, your way: Dell and the direct sales model. Retrieved from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://fod.infobase.com/PortalPlaylists.aspx?wID=273866&xtid=10070