Topic > Dell Case Study - 826

The first is to reduce high inventories and increase return on invested capital. Dell has cut inventory in the supply chain to reduce costs and be more efficient, so it has to reduce high inventories. As for the inventory in suppliers' warehouses, Dell can only keep inventory for about 8-10 days, while other companies still keep it for about 20-30 days (Christopher, 2005). It's a challenging job for Dell because it has to trust all the suppliers and make the process really efficient. Another challenge is establishing a common goal for all departments. To achieve the goal of the strategy, Dell must collaborate with all apartments and suppliers who have the same goal. It's really difficult because every company has its own business goal and value, so Dell won the challenge of supply chain integration. Finally, cutting retailers and distributors also poses a serious challenge to supply chain integration. Dell's suppliers also decreased from 204 companies in 1992 to 30 companies in 2003 (Christopher, 2005). Because Dell wants to reduce costs on the sales channel, it has to give up some relationships with resellers, even if they have a good cooperation experience, so it has to lose some trust and relationship with its distribution partners, however it is also hard work for