Ask the Manufacturing Execution Systems (MES) Expert: Scheduling Assistance
 Asked on Feb 16 2007 10:38:20:000AM | Q | Which model of supply chain is better, HP's or Dell's? Kumar Gunjan, Jamshedpur, NA |
| A | There are different ways to view this question, but a supply chain model must ultimately be judged on the basis of how it serves the larger corporate strategy. Yet, some companies have excellent supply chains but still have performance issues. Dell has often been cited as one of the premier innovators in supply chain design and execution. Its demand-driven, outsourced operational model enabled it to achieve market domination, which then allowed it to dictate costs and standards to suppliers. Yet, HP has retaken the lead in worldwide PC sales and is growing faster than Dell, and that wasn't by accident. It is true that HP has invested mightily to catch up with and overtake Dell. However, HP must be credited for leveraging its strengths (design, engineering, and its massive retail presence) while shoring up its weakness (moving from a fragmented product approach to a coordinated one). The result is a high-quality, reasonably priced product getting to market more quickly. As for leadership, it will be a very telling sign if Dell adopts HP's retail approach, which would result in a dramatic re-alignment of Dell's supply chain. In actuality, companies in the same industry often adopt aspects of their competitor's supply chain to achieve their business goals. It's not the other way around. In other words, HP must have the best supply chain model for HP, and Dell must do what's best for Dell. |
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