Examining Management Information Systems In Dell Logistics Information Technology Essay
The basic objective of conducting this study was to understand the impact of management information system in positioning of DELL as a customer centric company. It studies how Dell empowers customers with the feature of the customization and meeting their requirements with their Value Web Model.
The project deals with the Value Web Model of Dell which explains their logistic function right from taking orders from the customers and delivering them the product on time according to their specifications.
Dell is American Multinational Information Technology Corporation that develops personal computers, laptops, notebooks, computer peripherals, computer solution and various other services. Dell is the third largest PC maker in the world. Advent of internet has changed the entire dimension of the way business is done. Dell sells its products directly to the customer through the internet as well as the mail order catalogues. This has helped Dell to capture a major market share and has helped Dell to be one of the major players in its field. With the help of internet Dell is propelling to new heights. Implementation of e-commerce has made the middle part of the sales process redundant. Customer forms a major part of the manufacturing and product planning process at Dell. Dell ensures that ideas are shared across boundaries by making an appropriate use of the development of information technology. With the help of internet one can configure his laptop or desktop the way he desires and get it delivered within no time. Companies are using e-commerce extensively to increase their sales. Dell is now selling around $5 million of products online every day and Internet sales are approaching an annual run rate of $2 billion. We would see how information enabled services has helped Dell to increase its sales. Dell has extensively used Management Information Systems, Enterprise Resource Planning, Inventory Control Systems and various information processing tools to make its operations more efficient. Management information system is the key behind entire process. Other systems like ERP system and radio frequency identification system play a supporting role. Dell considers itself considers itself a virtually integrated company and this has played a major role in bringing Dell to competitive position in the market.
Description of the system
1. Order processing: In this step, Dell products can be ordered by calling on the toll free number or through the online store. Credit card is the fastest mode of payment online. Once the full payment is made, automatically order parts and transferred to the production database, the orders production department will immediately get to work. Users ordering can know delivery date or shipping company to track the shipping status, the number of orders issued by the user. To retrieve this information, the user needs to punch in a Dell order number and calibration data. Dell will send query results via the Internet to the user.
2. Pre-production. From receiving orders to start production, spare parts need to arrive at the factory. This time is called the arrival time. Pre-production time varies as the requirements are different. Order confirmation is usually two way i.e. telephone or e-mail.
3. Accessories ready. The required parts list also automatically generated, relevant personnel will have parts delivered to the assembly line.
4. Configuration. On assembly lines, assembly personnel will assemble the parts into the computer, and then into the testing process.
5. Test. Testing departments test the assembled computer with special test software.
6. Boxing. After testing, the computer is put into the box. At the same time, mouse, keyboard, power cord, instruction manuals and other documents are loaded.
7. Distribution preparations. The product is ready to be delivered after the production and testing phase. But the orders that require special shipping operations may take longer time.
8. Ship. Goods are shipped to the designated locations. Dell has designed several different delivery methods. Under normal circumstances, orders will be sent in 2 to 5 working days to the designated locations. The products are delivered at your doorstep along with free installation and testing services.
After confirming the receipt by the customer, confirm receipt of payment order is marked, before receiving the user’s payment.
The above diagram shows the information flow between Dell and all its stakeholders. It is also observed that there is information movement between the stakeholders as well.
Management Information System (MIS) is an amalgamation of organization with the information system. MIS is just not a system but a value addition for the organization. It can provide one with competitive advantage the way it provides to DELL. It helped in finding solutions to the problem as well as give an extra edge.
Dell’s direct sales Web site, offers a consumer order status tracking and query interfaces for consumer inquiry. Dell has an important aspect which is single production and no inventory risk. Dell’s competitors generally keep several months of inventory, while Dell’s stock is only a few days, these factors make Dell more than 50% average annual profit margin.
Dell’s has a direct way of e-commerce-based value to users which include:
Customization – irrespective of the size of order
Streamlining the production, sales, logistics, etc. which helps to save costs
The after-sales service provided covers all areas such as logistics, distribution
The logistics and warehousing and transportation relatively large differences exist, precisely because the traditional storage and transportation services for e-commerce services cannot be comprehensive, which makes e-commerce logistics operators are not in place, too backward. In addition to the traditional logistics services, e-commerce also need to value-added logistics services.
Also, the systematic 8-step process followed by Dell ensures customized goods to be delivered in lesser time.
Implementing MIS gives a strategic advantage and is important for survival in the dynamic market but it is essential to keep it updated and competent. It should be of high standards and help in achieve company goals and support the company to achieve its potential.Order Now