DELL SUPPLY CHAIN

Green: Typical working of Dell's supply chain

The role of SCM is becoming more and more important in today's business wold. SCM is today considrered as a source of competence and innovation.
Supply chain management has the objective to have the right products in the right quantities at the right time at minimal cost

Dell SC have moved to a more integrated and strategic approach. The key element of his successful business model of the company is its supply chain management. The core elements of Dell’s business model are its direct sales model, usually referred as “direct model”, and the build-to-order strategy.
From its very first steps, the direct sales model was adopted: At the beginning computers were sold over the phone and they were built according to the customers specifications.
After a short break of using the retail channel from 1990 to 1994, Dell returned to its direct model and grew rapidly.

The direct model refers to the fact that Dell does not use the retails channel,wholesaler or distributor but sells its PCs directly to customers through its website.

Dell’s Direct Distribution Channel

This way it creates a direct relationship with each individual customer.This direct relationship “creates valuable information” about the customer, thus Dell knows who the end users are, what they have bought from Dell and what their preferences are. This “provides Dell with a wealth of marketing and product development information

Dell distinguishes three customer segments
1. Large organizations (large companies or government institutions)
2. Small and medium businesses, and
3. Personal consumers;

There are some facilities that bring Dell and its customers closer

1. Premier Pages: To bring online tools for orzanization needs IT purchasing and to have easy excess to Dell services, support & solution to