Why has Dell’s Direct Supply Chain been so Successful?
The direct supply chain model that Dell has been using for many years to sell customized PC’s to customers via the internet has been very successful. Dell designed and structured the supply chain to provide customized computers in a quick manner and with a reasonable price. Customers can visit the Dell website and configure the PC they desired and see the cost options they selected. Once the order was finalized, Dell would then start the building of that customized computer to meet the customer’s selection and ship the finished product directly from the manufacturing …show more content…
Financial markets can also fluctuate depending on the global country economic position and potential corruption issues. Dell needs to proactively prepare and manage solutions that provide backup and fully tested contingency options in case these situations occur. The more Dell can manage by internally owned facilities or functions in the supply chain, the easier the company can prepare and adapt to uncertain impacts. There needs to be good communication with all parties in the supply chain design to ensure a full end to end information sharing occurs constantly, as this is vital to Dell’s supply chain management and success.
Why did Dell decide to Sell Products via Retail Outlets?
The online direct method supply chain provides a good structure and revenue stream for Dell. This methodology needs to be monitored and maintained to fulfill the customer’s demands for configurable computers and solutions in a quick and effective response. When Dell adapted their supply chain to be a hybrid model and offer retail purchase of their standard computers, this opened up more revenue options. As the computer components and technology are becoming more powerful and common, Dell can prepare standard configurations that customers like and provide these at local retail stores. Dell changed their supply chain strategy to additionally fulfill the retail to customer model and “increase reliance on contract manufacturers based in