Edition 47
Global Reverse Logistics Transformation
by Ger Hanley, EMEA Service Programs Manager, Dell

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For more than 28 years, Dell has empowered countries, communities, companies and people everywhere to use technology to help our customers realize their dreams.

Our customers trust us to deliver technology solutions that help them do and achieve more, whether they’re at home, work, school or anywhere else in their world. The customer is at the core of everything we do.


Doug Schmitt, VP, Global Suppoer and Deployment

Global Support and Deployment (GSD) is part of Dell Services and is led by Doug Schmitt, Vice President GSD. GSD operates support and deployment services for Dell Services in over 100 countries, served by over 40,000 direct and indirect team members. This industry recognized team provides best in class services and solutions that enable our customers to achieve their goals and objectives.


Tom Maher, VP, Global Service Parts

Global Service Parts (GSP) is Dell’s worldwide service parts organisation. Tom Maher, Vice President Global Service Parts, is a key member of this support and deployment team. Under Tom’s stewardship, Dell distributes over 11 million parts shipments per annum to customers in more than 100 countries worldwide. These parts are moved through more than 600 parts distribution centres in support of more than 100 million customer systems worldwide.

GSP is segmented regionally, with each region driven in accordance with a shared global strategic vision and operating plan. This structure ensures that global strategy and alignment is a core tenet while regional execution on behalf of our customers remains the number one priority. Service partners across the globe enable this execution at a local level.

A REGIONAL PERSPECTIVE

GSP is a multi-skilled, multi-faceted team that work 24 hours a day, 365 days a year to support Dell’s customers from the North of Scandinavia to the South coast of Chile.

GSP is composed of three primary Regional Organizations
• Europe, Middle East, Africa and Russia, Led by Executive Director Timmy O’Dwyer
• Americas, Led by Director Dennis Dienno
• Asia Pacific, Led by Director Maxwell Chen

Each regional organization is globally aligned and works very closely with local Dell business units to support our customers and enable services revenue growth.


Timmy O'Dwyer, Executive Director, EMEA Service Parts

EMEA

Recent changes in importation laws covering South Africa resulted in a new requirement to segregate service parts into new and refurbished. Strikes resulting from unease with Government austerity measures in France, Spain and Italy have the potential to delay shipments of much needed service parts to customers. A contingency plan is reviewed with the service logistics provider in Israel. Growth plans are discussed for Russia and the criticality of service parts local distribution, importation and exportation are acknowledged. Plans to deal with challenges and opportunities in Africa, including parts availability and local repair plans are being deployed. Western Europe service parts stock levels are revamped in line with the deployment of a new global planning IT application. Global service operations and partner strategy plans for the next three years are being developed and deployed.

All of these issues can be overhead in a typical conversation between Timmy O’Dwyer, Executive Director of EMEA Service Parts, and his various team members located throughout the EMEA region.

Timmy is a key note speaker and panel member at regional RLA events. He has worked in the technology industry for a number of years and has supply chain leadership experience at several companies including Wang, Teradata, NCR, and AST before joining Dell.

Dell’s legacy in Limerick is one of a regionally-focused manufacturing and support operation. The recent change in Dell’s overall corporate strategy to position it as a solutions company, required the campus leadership team, including Timmy, as an executive member, to focus on alternative operations; in particular Services Support & Deployment, Application Development, Enterprise Solution & Command centres, Infrastructure & Cloud Computing. At the same time, the team had to maintain a centre of global excellence in both service and manufacturing supply chain, finance, HR and supporting functions.

The EMEA service parts model is defined as supporting both client and enterprise offerings along with a significant focus on emerging country operations in Africa, Turkey, Eastern Europe, Russia, and the Middle East. With the supply of service parts coming from ODM partners in China and our repair partner based in central Europe, products are inbounded, kitted and made ready in our central distribution center in the Netherlands. From there, they are distributed to regional and country hub locations. Our Enterprise product is dispatched to more than 100 mission critical centers across the EMEA region.

ASIA PACIFIC & JAPAN

Since the credit crunch and the weakened global position of western economies, Asia has been transforming itself from a low cost manufacturing base to a major world consumer with double digit growth and improved GDP. One might comment on this as the awakening of the consumer giant. The growth in Asian economies has resulted in the gradual, investment in, and development of, logistics and distribution infrastructures as the backbone of the rising economies.


Team Members Rohit Joshi, Jalal Aweti, Ng Wee Kwong

Over the last few years, Asia has become the fastest growing region for Dell. To complement its growth in Asia, Dell’s APJ Service Parts team, led by Maxwell Chen, continues to look for creative ways to deliver its tactical strategies in positioning the right part at the right location at the right time and at the right cost while ensuring an improved customer experience.

When Dell first set up its operation in Asia, it had to rely on the existing, basic available distribution network and channels to reach its clients and customers.

However, as logistics operations continued to grow and flourish organically throughout Asia, especially in India and China, Dell found itself evolving its service delivery by revisiting and readdressing its service network optimization program and stock deployment strategy.


The Growing and Expanding Shanghai Port

Led by Maxwell Chen, Dell’s Service Parts in Asia Pacific’s adaptable and flexible approach to service delivery remains the primary enabler for continued evolution and growth.

Dell has managed to improve its customer satisfaction and experience while materializing savings through the coupling of stock deployment and network optimization. This continues to be an ongoing area of opportunity for Dell.

A sustainability strategy and green initiatives are right at the heart of Dell’s philosophy. There are many initiatives that demonstrate Dell’s commitment to enforce global and regional compliance.

“Dell is proud to be listed as one of the top green IT companies in the world,” stated Mr. Chen. “Our efforts to redesign the size of the spare parts packaging and rethink the materials used enables us to use less material while continuing to effectively deliver service parts to customers.

This initiative appeals to customers who want to consider the impact on the environment, and to our environmentally conscious team members who participate in green initiatives across Dell.”

A CONVERSATION WITH THE AMERICAS

We decided to ask Dennis Dienno, Director of Americas Service Parts, to articulate just how his region meets the challenges presented by these questions on a daily basis.


Dennis Dienno, Director, Americas Service Parts

Question: Are we delivering on our promise to our customers?

Answer: The processes we have in place to plan for parts, fill orders, and process returns are heavily influenced by the data that we collect to determine how best to serve our customers. Every time our customers purchase a warranty, they, in effect, buy a promise from Dell. Our job is simply to make good on that promise without fail. To achieve this, we align with sales and marketing teams to ensure we understand the offers Dell is extending to our customers. We then work with a great team of people to put the right parts in the right locations to ensure that when our customers need us, we will be ready to respond. We carefully review customer feedback to find any gaps in our process. If we discover gaps, we work diligently with our partners and our internal teams to fix the problem ASAP.

Question: Are we creating a workplace where our people are empowered and able to do their best work?

Answer: Our people are the heart and soul of our organization and our company. We realize the best thing we can do to support our employees is to provide direction and guidance and then get out of the way and let them do what they do best; leverage their skills and creativity to take care of our customers.

Since its founding, Dell has always been a special place where people are rewarded for the work they do. This spirit continues today. As a leader and an employee, I, and everyone I talk to, continue to be energized by what we as a company are doing today and by what lies ahead.


Dell Austin's Round Rock Campus

Question: Are we managing our cost responsibly and providing value to our shareholders?

Answer: Dell has always looked for ways to reduce costs and pass those savings along to our customers and our shareholders. Dell’s innovative supply chain is a great testament to this commitment. We are constantly scrutinizing what we do and how we do it to make certain we are putting our money to good use. This can manifest in departmental projects to streamline processes or may involve a major IT project to transition multiple systems into one. You can be sure that at any time we have several initiatives in play to enhance our ability to support our customers and drive costs improvements.

SHOWCASE – WORLD WIDE SERVICE PROCUREMENT

GSP faces many challenges today.

• More than 20,000 part numbers under management spanning more than 60 commodities and more than 300 suppliers globally with more than 75% of part numbers no longer in mass production
• An increasingly shrinking product life-cycle, from 18 months to 9-12 months, resulting in increasing amounts of end-of-production and end-of-life ASU’s
• More than 600 global hubs, covering more than 100 countries
• Increasing lead-times for end-of-production parts
• Significant change in the PC industry with traditional notebook and desktop platforms in decline
• A major company transition from a product company to a software, services, and solutions company

As the spectrum of challenges continues to expand, Worldwide Services Procurement (WWSP) has seen a parallel intensification in scope and breadth of function, accountability, and significance.

Nested within GSP, WWSP is a global team of procurement professionals located in Shanghai, China and Austin, Texas. This team is chartered with managing the overall relationship between GSP and our supplier network of ODM’s, commodity suppliers, and a variety of sub-component manufacturers.

The team adds value by contributing its procurement and supply chain knowledge and expertise to ensure service and warranty part support for Dell’s customers. In layman terms, this team of Global Commodity and Supply managers ensures support of the Dell Service regions by making sure the right part gets to the right place at the right time, all at the right price.

As Dell continues its transformation to meet the needs of the future, WWSP has been undergoing its own transformation. The team is shifting away from being a reactive, escalation-driven firefighter, and is evolving into a global thought leader. As a leader, Dell is demonstrating proactive engagement, spearheading escalation-prevention actions and processes, and exploring global opportunities around operational execution and supply chain management.
RLM

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