How has dell used its direct sales and build to order model to develop an exceptional supply chain

However, their suppliers come from various countries from around the world, thus, making it difficult for Dell to control the consistency of quality. Dell is able to manage effectively in producing the best results at the end of its supply chain.

The other big way that Dell competes with a retailer that already has computers in stock is by allowing the consumer to customize their computer to exactly what they want.

How has dell used its direct sales and build to order model to develop an exceptional supply chain

Another main disadvantage is that because Dell handles the transaction from the very beginning to the very end with no other direct company involvement, Dell must also handle all aspects of the transaction, including providing all customer support from beginning to end.

Question 2: How has Dell exploited the direct sales model to improve operations performance? How has Dell exploited the direct sales model to improve operations performance?

how does dells supply chain deal with the bullwhip effect

Dell computers was a creation of Michael Dell in his dorm room. The other issue of the direct sales model is that you have to shoulder all the related support costs, from handling information requests before the sale to taking and tracking orders to handling service inquiries after the sale.

The process moves from consumer to distribution, and then moves to suppliers. Rather than having long waits, backlogs and excess stock which a retailer might be having kept in its stores waiting to be sold, Dell eliminates and practices just-in-time manufacturing. A lot of competitors of Dell is trying to adapt and build a direct sales model similar to Dell. This is an added advantage for customers as they can build their pc based on their current needs as well as their budget. The Website created by Dell instills satisfaction and trust in its customers because it enables interaction with customers and allowing the customer to customize his own product. As soon as an initial product is designed, Dell starts to market that product on the web-site. These materials are then modified through manufacturing processes to become the required part At the conclusion of this paper will be ways that, Dell can increase invocation at their company. By making this possible to the consumer, the consumer gets exactly the product that they want, designed and loaded with the exact requirements specific to each individual consumer. This sales model created an exceptional supply chain because this integration of activities from the procurement of materials to the final product and Dells direct shipment to the customer can be done in a matter of hours compared to months.

The suppliers then immediately know what the demand is for the components that they supply to Dell for their systems. In summary, if you can build in real time based on actual demand you will not have to worry about inventory buildup of unnecessary components and products.

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Supply Chain Management at Dell Essay example