Dell company success
Altera had the modification of its strategy in building an order. The adjustment ensured an increment in the led time. The company was guaranteed protection from conditions that have no expectations from the market; this is because the industry of technology is on the fast pace of evolution. This new strategy targets to help in avoiding the mistakes made in the past.
As far as the Dell company success is concerned, adopting a make ordering concept as the cornerstone of the management of the supply chain it has, the strategy is in line with progress. The merits tied to this strategy increment in the profits as well as the decrement of the risks due to more time in adopting the market. Also, there will be a reduction in the FG inventory, safety stocks, list holding shares, and minimizing the obsolescence risk. On the other hand, the demerits of this strategy are that there will be a longer lead time. Long led time is not impressive to retain clients. The company will also have unnecessary challenges in data processing as the software won’t eliminate garbage in, garbage out.
The measurement of the lead time will not be done in weeks anymore as earlier, but in months due to adjusting the lead time, this will result in the fleeing of the customers. Nevertheless, the new strategy in place can avail faithful potential customers. The new customer will commit working together in one way or the other. More satisfaction will result from the company and the customers; the clients will receive their desire. Also, Altera will control more supply chain alongside the demand. On the contrary, several customers might be unappreciative of the involvement in the activities. These are customers who do not have to care for the specialty alongside how the product is adopted.
Flextronics has many customers. This company does the manufacturing of equipment for these customers. It has the chance to see the aggregated demand as well as the supply that is in production. The information at hand concerning the supply and demand has significance for the suppliers for customers and the VMI inventory for hat it requires. The company got the customers’ data from the data in history that was available. It leveraged the data so that to have the analysis of the cycle of the product of the personal computer, and the customers were unable; information aggregation aids in the trends analysis risks mitigation, and via pooling the resources. Flextronics is considered one of the best companies in equipment manufacturing. The success they have is due to the information usage. The information has benefited the company, the customers, and the suppliers, alongside the partner.
The pull strategy of IBM is effective. The effectiveness is by managing the suppliers it possesses through the production of forecast that runs out ninety days out. The forecast updating is done weekly and availed to the suppliers; this allows the company to make the needed adjustment to meet the demand in place. IBM used money, time as well as time in predicting the accurate forecast because the forecast has a significant effect on the bottom line. Many consequences can emerge when inaccuracy in forecasting is in place. These consequences are a shortage of materials, sales loss, reduced profit, and more cost in the inventory. According to the nature of things, a percentage of one hundred in forecasting is a dream not to come true; nevertheless, using quantities techniques, IBM has the ability in the creation of the forecast that is not 100 % accuracy; however, it is near to some given assumptions.