Case Study: Supply Chain Management at Dell, Dell's Direct ModelDell Inc. pioneered the Direct Model of selling PCs directly to the consumers. How it enabled Dell to manage its supply chain efficiently is discussed in this case study.
Dell Computer Corporation a leading direct computer systems company was founded in 1984. Dell sells its computer systems directly to end customers, bypassing distributors and retailers (resellers). Dell's supply chain consists of only three stages— the suppliers, the manufacturer (Dell), and end users.
Dell’s direct contact with customers allows it to:
- properly identify market segments,
- analyze the requirements and profitability of each segment, and
- develop more accurate demand forecasts.
Another advantage Dell gets by directly dealing with the customer is that it is able to get the customers requirements regarding software to be loaded. Dell loads the ordered software in its plant itself before dispatching it. By eliminating the need of a PC support engineer to load software, the customers gain both in time and cost. They can use the PC’s the moment they arrive. More soon....
Case Study Keywords: Supply Chain Management, SCM, Supply Chain Case Study, Direct Model, PC Retailing, Dell Computer Corporation, Michael Dell, Founder and CEO
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