Case Dell

Case DELL

Q1:Dell has used its direct sales and build-to-order model to create this exceptional supply chain by integrating everything from the beginning to the end process. Dell does not produce any product before the customers make any order. As soon as Dell design a product, Dell market the product on Dell’s website. So after customer makes the order, the supplier will know how to make the plan based on the order quatity.

Q2:Direct sales are the best option to deliver the quality goods at the least possible prices and via

this model the company can sustain its position in the competitive market. This way the company

tries to exclude the margin of distributors and retailers, thereby increase of owns margin and

collect the payment exactly after sales and this direct sales model enhances the operational

performance of the organization. Dell is able to get the immediate customer feedback and

requirements which help in further innovating and improving their operational performance.

Thus, the company uses the effective supply chain strategy so as to maintain its position in the

market.

Q3:The main disadvantage of direct sales model is the after sales service which misses due to

missing of the shipment phase and the customer services post, pre and during the product is

completed. Moreover, the outbound cost of the product gets higher due to the elimination of

intermediaries in the supply chain. Thus, the supply chain of Dell is the biggest disadvantage as

shipment cost is high in sending the individual product to the customers.

Q4:The segment in which Dell is operating is highly competitive and it is only on supply chain

which can make the difference. The companies requires both the medium of sales, i.e., via

internet and brick and mortar business. Both these mediums have its own advantage and

disadvantage and the company who is able to control both of these is competitive and successful.

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