Case Study: Dell Sourcing practise

Integrity, responsible business practices and a high standard of ethical behaviour are paramount to Dells Supply chain. It expects the same of our supply chain partners, too. Respecting workers, their communities, government and the environment are a fundamental expectation and meeting these standards is a condition of doing business with Dell. And having an effective management system is the key to identifying risks, reinforcing values, and driving change.

Many of its suppliers build components for multiple companies in the electronics industry. It is therefore particularly important that companies work together and consistently in how they monitor supplier performance, address systemic challenges, and continuously raise the bar. In 2004, Dell and other leading electronics companies joined forces and founded the Responsible Business Alliance (RBA), a non-profit organization with a common goal to use shared standards and tools to advance social, ethical, and environmental responsibility in the global electronics supply chain.

As members of RBA, they commit to and are held accountable to responsible business standards set forth in the RBA Code of Conduct, which addresses performance in the areas of labor, health and safety, environment, ethics, and management systems. They follow this in its corporate activities, facilities, and our supply chain, and have adopted this as part of Dells Code of Conduct and Supplier Principles.

In addition to complying with all applicable laws and recognized international standards, they ask their suppliers to abide by the RBA Code of Conduct and their Supplier Principles as a condition of doing business with Dell. The RBA Code of Conduct screens for compliance to local laws, and enforces whichever standard is stricter. They monitor and seek to improve suppliers compliance with these expectations through our risk assessment, audit process, corrective action plan management, and capability building programs.

Required:

1. Using Mendelows Power interest matrix, discuss how Dell will manage its international stakeholders. (8 Marks)
2. Use supplier positioning model to mage Dells suppliers (8 Marks)
3. Discuss the demerits that Dell will likely to encounter by adopting RBA (4 Marks)