Dell And Dell 's Competitive Market Essay

1239 Words Oct 23rd, 2015 5 Pages
According to Daniels and Stott berry (2008), Dell uses Direct Model which is quite different from its rivalry companies. Without having any retail channel, Dell sells its product. This brings the result of direct communication with customers which they have segmented into clusters or groups which guide the company for contact. It’s another model is the Build-to-order strategy. According to this once the order is placed by the customer, all the configuration details are sent to the manufacturing floor and then the assembly of the PC begins. And computer built and all the software’s are downloaded it will be shipped to the customer by using 3PL. This brings the very positive results for Dell in competitive market. The amount of inventory is cost is low because of faster responses to demand changes. It is also noticeable that customer pays for an order before DELL pays its suppliers for the products components. Thus the most interesting part of DELL and its supply chain is relationship they maintain between the customers which of course lays foundation for the existence of the business
Another important factor for its success is, that managerial level involves in Supply chain activities. Managerial Level develops the strategic plan for supply and chain process for an organization (Foster et al. 2008). By considering supply chain, strategic level decisions are being made. Direct selling to customer idea is also decision from strategic level. In supply and chain, customer…

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