Dell's Value Chain

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Dell’s Value Chain

1. How has Dell used its direct sales and build-to-order model to develop an exceptional supply chain?
Dell has used its direct sales and build-to-order model to develop an exceptional supply chain by taking customer feedback very seriously. Dell uses the feedback to further evaluate and when necessary, implement change to improve their supply chain. The company maintains close-knit relationships with customers, and maintains very close, professional relations with their suppliers. Dell collects a larger amount of customer information than is the industry norm. This also works to the company's advantage.

The close-knit relationships with customers that Dell maintains allow the company to determine what products must be supplied, and how quickly they must be supplied. By doing so, Dell is able to maintain a continuously low level of inventory, while ensuring that customer demand is adequately satisfied.

Dell also has used a different approach than the norm in their supply chain management. Dell's strategy is to integrate every single process, from the very beginning, to the very end, without any other interference. Through strategic planning, Dell discovers exactly what it is that customers want. With the information, further research and development is implemented by the company. The company then begins strategically marketing the highest target groups for their products, before product release. Information is then automatically released to suppliers, who can in-turn develop demand projections for the marketed Dell products. This entire system is accomplished in a relatively short span of time, which adds to the exceptional supply chain in force at Dell. 2. How has Dell exploited the direct sales model to improve operations performance?

The main way that Dell has exploited the direct sales model to improve operations performance is by establishing an e-commerce model accomplished directly through the Internet. By utilizing the...
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