In recent times logistics and supply chain management have become the most vital issue for Organizations; Dell has realized this from initial and so by putting more emphasis on its logistics, supply chain management and direct sales strategies it has become one of the most successful PC companies in the world.
A little bit of history, Dell was founded on November 4, 1984 in Austin Texas, by Mr. Michael Dell when he was a student at university of Texas in Austin. In the beginning only Dell adopted its key supply chain strategy of direct sales, initially they use to take orders on phone according to customers condition. Then later they do tried to use retail channel from 1990 to 1994, but after that it returned to its direct model and grew quickly and in 1999 it became the number one PC company in United States and two among all pc companies in the world. Michael Dell the unique supply chain strategies and his successful way of putting them in to practice played considerable role in Dell success.
Computer maker Dell Inc. became the poster child for supply chain efficiency largely thanks to its "direct model," which shifted a make-to-stock philosophy to make-to-order. That transition helped Dell reduce its cycle times to levels that had been unthinkable for the high-tech industry, allowing the company to carry inventory for just a few days rather than for three to four weeks. And other industries, particularly the consumer-packaged-goods field, were quick to notice Dell's success and began shifting their own supply chains toward the direct model.
Problem is, supply chain best practices aren't etched in stone, and as Dell learned, that innovative spirit that led to the creation of the direct model needed to be tapped into again and again to ensure the company stayed relevant to the current needs of its customers.
While the direct model worked phenomenally well when