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Dell- Online all the time

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Introduction Dell ha s competitive

advantage due to extensiveuse of internet

Dell led commercial migrationto the internet ,launchingwww.dell.comin 1994

Dell added e commerce

capabilities in 199. !he following "ear Dell

became the #rst compan" torecord $1 million in onlinesales.

!oda" dell opeartes one of

the highest volume internetcommerce site in the world.

%t &aluechain.dell.com dellshares information with itssuppliers.

&'(O)I!*-+ove the product

to customer through fastestchannel

se the best mix ofcvhannels and transactionprocessing s"stem that full"

support the exible use ofmultiple channels.

ostponement-*es it is in agood sense as Dell canpostpone the manufacturing

and shipping decision to thelast possible moment,essentiall" element ing#nished goods inventor"

http://www.dell.com/http://www.dell.com/

7/21/2019 dell scm 2 page ppt

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Three Golden Rules Of Dell ,Dell direct model & Supply Chain Chart

7/21/2019 dell scm 2 page ppt

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INSTRUMNTS !OR IN"NTOR# MOD$

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('%/ I/&'/!O0* +OD'(

0evolvers or supplier logisticscenters 2()s3 are smallwarehouses located within a fewmiles of Dells assembl" plants.

'ach of the revolvers is sharedb" several suppliers who pa"

rents for using their revolver.

0eturns grew disproportionatel" as thecarr"ing costs and obsolete stoc5 isavoided.

2aves enormous amounts of mone" onpurchasing components because thecomponent prices drop b" 6 percent permonth.

0educes handling cost. )ommon factors

that drive up holding costs includeopportunit" costs, increased rentre7uired for the space of the inventor",higher premiums to insure theinventor", and cost of obsolete goods.