Study of supply chain capabilities of EMEA region

Abstract

Due to the high market growth potential in Eastern European countries, it is important that Dell improves its supply chain capabilities in these countries and provides good customer satisfaction by improving on-time delivery performance. But, compared to Western Europe, the service levels seen in Eastern Europe are poor. In order to rectify this situation, a benchmarking study of the supply chain capabilities and maturity of the Eastern European countries with respect to the Western Europe regions needed to be done. This project is an attempt in that direction. As part of the project, study of Dell’s existing supply chain structure in the EMEA region has been done with more focus on outbound logistics part. The various performance metrics were analyzed and Eastern European countries, whose performances are relatively poor compared to many of the Western European countries, have been identified. Subsequently, a secondary study was conducted to understand the logistics and infrastructure capabilities of various European countries specifically focusing on comparison of the top performing countries against the ones that are significantly lagging behind. Based on the analysis, it could be concluded that there is a strong correlation between logistics and infrastructure capabilities, and the supply chain performance of Dell observed in those regions. Also, the potential factors behind the issues such as inappropriate service level agreements, prioritization of competitor orders based on incentives, procurement uncertainty and expediting of higher priority orders at the expense of others were identified. In the end, recommendations which could be used to overcome the identified issues were provided.