Dell's Supply Chain Management

Direct Sales and Build-to-Order Model: Dell’s computers, workstations, and servers are built-to-order and none are produced for inventory purposes which clearly cuts Dell’s cost on inventory. Dell customers could order through their website or even via phone, custom-made servers and workstations based on the needs of their applications. For desktop and laptop, customers are able to order whatever configuration of microprocessor speed, random access memory (RAM), hard-disk capacity, CD-ROM drive, fax/modem, monitor size, speakers, and other accessories they favored. The orders will then be directed to the nearest factory. Dell has proven to be successful in minimizing inventory and bringing new products in the market quickly enabling them to increase market share and achieve high returns on investment in a highly competitive industry by implementing the direct sales as well as build-to-order model.

Dell’s Supply Chain Management: Dell 's supply chain generally consists of only three stages which are the suppliers, the manufacturer which is DELL themselves, and most importantly the end users which could be either for personal use or even business use. Dell is able to match supply and demand because their customers order computer configurations over the phone or through the internet via Dell’s website. These computer configurations are built up from components that are available. Dell’s strategy is to provide their customer’s customized, low cost, and quality computers that are delivered on time. Dell successfully implemented this strategy through their efficient manufacturing operations, better supply chain management and direct sales model. Since Dell takes orders directly from their customers, either through the phone or online through their website, Dell manage to reduce the cost of intermediaries that would otherwise add up to the total cost of PC for the customer. Time is also being saved on processing orders that other companies normally incur in their