The technology giant's global command centers coordinate parts logistics and field technicians to respond swiftly to customers' requests. They even monitor potential problems like natural disasters and work with customers to develop contingency plans.
When a manufacturer sells its products worldwide, its customers expect that it will also service those products on a global scale. It's not easy to meet those expectations in a consistent and timely way. But thanks to "global command centers" that oversee delivery of parts and field service, the technology giant Dell Inc. is able to ensure that its enterprise customers worldwide get the service they need when they need it.
A global command center provides companies with visibility that allows them to monitor supply chain activities and make adjustments in real time as events occur. Although command centers are a relatively new supply chain initiative for many companies, Dell opened its first one nearly 10 years ago for service parts. (Dell also operates several command centers on the fulfillment side.)
Dell, based in Round Rock, Texas, USA, makes and sells personal computers, servers, data-storage devices, network switches, and computer peripherals. The company outsources much of its on-site technical support for those products to outside field engineers; it also contracts with third-party logistics companies to handle the storage and delivery of service parts to customers.
Adopting the command-center concept for parts and service delivery has helped Dell to work more closely with its service providers and be more proactive when it comes to customer service, thereby strengthening customer loyalty. A peek inside one of the command centers shows how they work and why they've been successful.
What do Dell's Global Command Centers do?
Dell's command centers are located in Austin, Texas, USA; Limerick, Ireland; Kawasaki, Japan; Xiamen, China; and Penang, Malaysia. According to the technology giant, these customer-focused command centers provide:
Critical situation procedures for analyzing and recommending solutions during major crises
Critical management teams that include Dell experts and experts from partners such as Microsoft, Oracle, and VERITAS
Mapping programs that may be used even during a natural disaster, power outage, or virus attack to efficiently mobilize and route emergency resources
Real-time tracking for management of incidents, technicians, and service parts
Live news and weather feeds to proactively identify national problems that might cause customer service delays
Aligning with customers' priorities
Dell reported US $61.5 billion in revenue from its operations in 2011, one of the most successful years in the company's history. The bulk of that revenue derives from product sales, but after-sale support plays an important role, as service quality has become crucial for maintaining customer loyalty.
"In the last decade the perception of [information technology] for many customers began to shift from being viewed as just a cost center to being viewed as a key strategic advantage," explains Steve Sturr, executive director of global services at Dell. "Customers expected faster response and resolution times from their vendors in order to assure the continuity of critical business processes and to manage costs. It was imperative for Dell to acknowledge the changing customer needs and align our support model appropriately. The global command centers were born from this evolution in customer priorities."
Dell's service parts command centers are located in Austin, Texas, USA; Limerick, Ireland; Kawasaki, Japan; Xiamen, China; and Penang, Malaysia. At each center, experts in various subject areas closely monitor service developments and direct Dell's service providers. The command center in Austin, Texas, for example, resembles a "war room" staffed with experts who sit at computer consoles arranged auditorium-style, so they can see an array of huge, wall-mounted screens displaying service requests, maps, news, weather, and other live information feeds. "It looks like a NASA command center," says Sturr, comparing it to the U.S. National Aeronautics and Space Administration's rocket-launch control room.
The five command centers' staffers monitor service requests from customers. In addition to offering assistance over the telephone, they route spare parts from more than 600 parts depots across the globe and dispatch technicians to a customer's site if needed. The centers, in turn, are supported by 30,000 technical experts worldwide who provide tech support to customers and the field engineers who perform on-site repair.
Given businesses' dependence on information technology, Dell's customers often need help right away. If the Austin troubleshooters, for instance, can't resolve the customer's problem over the phone, they can arrange the delivery of parts and dispatch of a technician, often within two hours.
A clear view in real time
Real-time supply chain visibility plays a key role in ensuring Dell's ability to respond quickly to customers' requests. The real-time information depicted on the computer monitors and displays are enabled by Dell's custom-designed technology platform, called Clear View monitoring. That platform allows Dell to monitor service dispatch activity as it occurs.
Clear View monitoring is actually a combination of business-process management software and business-activity monitoring software. Together these applications take data feeds from Dell's partners and the company's own internal systems and then run that data through a rules engine, which has preset conditions to flag a command-center staffer about when to act on an issue. The rules engine software can detect simple exceptions in a single customer service request or recognize complex patterns emerging from multiple requests. "It establishes thresholds for when there's a problem," Sturr says.
The Clear View platform interfaces with a geographical data system. That makes it possible for the system to match a service dispatch with the optimal parts location in Dell's supply chain network. It can also take into account current weather information to determine whether an event like a storm might impact a parts shipment. The command centers also evaluate the potential impact on parts deliveries of flight delays, traffic congestion, local events, and news developments and help customers develop contingency plans.
Because the center is monitoring weather developments, Dell can, for example, forewarn a customer of an impending storm and advise precautions. Sturr cites the example of a tornado ripping through part of the U.S. Midwest. Dell could contact a hospital in that area about setting up a command center of its own to track health information for patients who are injured by the tornado. To assist the hospital during that emergency, Dell could pull computers off its factory floor and fly those machines and a team of engineers to the hospital to set them up.
To coordinate emergency response, Dell would have to work with its network of third-party service providers. The command center plays a key role in scenarios like this one and other, everyday events because it enables data integration between Dell's information systems and those of its service partners. That's critical, Sturr says. "When you operate a heavily outsourced facility, you want visibility into what happens inside your partners' [operations]."
There also have to be flawless exchanges of information when multiple parties are involved in providing service, often in extremely short order. "There has to be real-time data feeds to make command centers work," says Sturr.
Proactive support
The global command centers have enhanced Dell's customer service in a number of ways. For one thing, they enable a swifter response to customers' service needs. For another, they help to ensure that routine service calls and emergencies alike are addressed through the most effective processes. In fact, Sturr says, Dell sees the command centers as centralizing "a process-assurance capability that acts as a day-to-day process-orchestration engine." The centers' expertise also has allowed Dell to better prepare and mobilize information technology resources to support large-scale customer events such as political summits and sports competitions.
More importantly, perhaps, is that the command centers make it possible for Dell to reach out and help customers prepare for disruptions, delays, or other problems that are outside the computer maker's control. "When there's a disruption in the supply chain, we can notify customers proactively," says Sturr. "For example, if there's bad weather in the U.S. Midwest, parts won't get delivered because planes aren't flying. Customers want to hear from us first and not the next day. Customer communication is the single most important thing we do."
Along with enhanced customer service, the centers have increased supply chain efficiency through better coordination with outside vendors and reduced operational costs in Dell's parts supply operation, thus improving the company's overall competitiveness and profitability.
"We've realized significant improvements in our overall on-time-performance metric, and the process improvements driven from within the global command centers have saved Dell millions of dollars," Sturr says. "But the most unique advantage is the [centers'] ability to work across all the functional segments of our supply chain and act as a mortar that seamlessly unites each of those segments."
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.
Jason Kra kicked off his presentation at the Council of Supply Chain Management Professionals (CSCMP) EDGE Conference on Tuesday morning with a question: “How do we use data in assessing what countries we should be investing in for future supply chain decisions?” As president of Li & Fung where he oversees the supply chain solutions company’s wholesale and distribution business in the U.S., Kra understands that many companies are looking for ways to assess risk in their supply chains and diversify their operations beyond China. To properly assess risk, however, you need quality data and a decision model, he said.
In January 2024, in addition to his full-time job, Kra joined American University’s Kogod School of Business as an adjunct professor of the school’s master’s program where he decided to find some answers to his above question about data.
For his research, he created the following situation: “How can data be used to assess the attractiveness of scalable apparel-producing countries for planning based on stability and predictability, and what factors should be considered in the decision-making process to de-risk country diversification decisions?”
Since diversification and resilience have been hot topics in the supply chain space since the U.S.’s 2017 trade war with China, Kra sought to find a way to apply a scientific method to assess supply chain risk. He specifically wanted to answer the following questions:
1.Which methodology is most appropriate to investigate when selecting a country to produce apparel in based on weighted criteria?
2.What criteria should be used to evaluate a production country’s suitability for scalable manufacturing as a future investment?
3.What are the weights (relative importance) of each criterion?
4.How can this methodology be utilized to assess the suitability of production countries for scalable apparel manufacturing and to create a country ranking?
5.Will the criteria and methodology apply to other industries?
After creating a list of criteria and weight rankings based on importance, Kra reached out to 70 senior managers with 20+ years of experience and C-suite executives to get their feedback. What he found was a big difference in criteria/weight rankings between the C-suite and senior managers.
“That huge gap is a good area for future research,” said Kra. “If you don’t have alignment between your C-suite and your senior managers who are doing a lot of the execution, you’re never going to achieve the goals you set as a company.”
With the research results, Kra created a decision model for country selection that can be applied to any industry and customized based on a company’s unique needs. That model includes discussing the data findings, creating a list of diversification countries, and finally, looking at future trends to factor in (like exponential technology, speed, types of supply chains and geopolitics, and sustainability).
After showcasing his research data to the EDGE audience, Kra ended his presentation by sharing some key takeaways from his research:
China diversification strategies alone are not enough. The world will continue to be volatile and disruptive. Country and region diversification is the only protection.
Managers need to balance trade-offs between what is optimal and what is acceptable regarding supply chain decisions. Decision-makers need to find the best country at the lowest price, with the most dependability.
There is a disconnect or misalignment between C-suite executives and senior managers who execute the strategy. So further education and alignment is critical.
Data-driven decision-making for your company/industry: This can be done for any industry—the data is customizable, and there are many “free” sources you can access to put together regional and country data. Utilizing data helps eliminate path dependency (for example, relying on a lean or just-in-time inventory) and keeps executives and managers aligned.
“Look at the business you envision in the future,” said Kra, “and make that your model for today.”
Turning around a failing warehouse operation demands a similar methodology to how emergency room doctors triage troubled patients at the hospital, a speaker said today in a session at the Council of Supply Chain Management Professionals (CSCMP)’s EDGE Conference in Nashville.
There are many reasons that a warehouse might start to miss its targets, such as a sudden volume increase or a new IT system implementation gone wrong, said Adri McCaskill, general manager for iPlan’s Warehouse Management business unit. But whatever the cause, the basic rescue strategy is the same: “Just like medicine, you do triage,” she said. “The most life-threatening problem we try to solve first. And only then, once we’ve stopped the bleeding, we can move on.”
In McCaskill’s comparison, just as a doctor might have to break some ribs through energetic CPR to get a patient’s heart beating again, a failing warehouse might need to recover by “breaking some ribs” in a business sense, such as making management changes or stock write-downs.
Once the business has made some stopgap solutions to “stop the bleeding,” it can proceed to a disciplined recovery, she said. And to reach their final goal, managers can use the classic tools of people, process, and technology to improve what she called the three most important key performance indicators (KPIs): on time in full (OTIF), inventory accuracy, and staff turnover.