Dell: High Velocity, Focused Supply Chain Management
What are the Fundamental Reasons for Dell’s Success?
Dell was founded in the year 1983 by Michael Dell, who was at the time a medical student. Dell has since then become one of the biggest technological companies in America. The company has managed to accomplish this through the development of a strategy that is centered on high velocity, focused supply chain management, full visibility and partnerships with suppliers, focused manufacturing and building to order and lastly direct customer contact.
i. Direct Customer Contact
From the inception of Dell building its own machines in the year 1985, the company is perceived to have retailed its products directly to the consumer. This was attained through the removal of any middlemen in the process and ensuring that the consumers get the products considerably faster. In the same manner, it is deemed that Dell has made significant investments in customer relationship management systems so as to guarantee closeness and familiarity with its key consumers. Furthermore, it is perceived that the company has assessed the cost to serve dissimilar consumer segments by means of designing product offerings in view of that.
ii. Direct Communication with Consumers and Real-time Visibility
Dell’s strategy hinges on the internet, which permits the company to directly communicate with consumers and attain real-time visibility of...
References
Dell, M. & Fredman, C. (1999). Direct from Dell : strategies that revolutionized an industry. New York: HarperBusiness.
Mangan, J., Lalwani, C., & Lalwani, C. L. (2016). Global logistics and supply chain management. John Wiley & Sons.
Sehgal, V. (2011). Supply chain as strategic asset : the key to reaching business goals. Hoboken, N.J: Wiley.
Shimizu, T. (Ed.). (2005). Strategic Alignment Process and Decision Support Systems: Theory and Case Studies: Theory and Case Studies. IGI Global.
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