Dell.com's Managing the Electronic Supply Chain Effectively
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Case Details:
Case Code : ITSY012
Case Length : 09 Pages
Period : 1996-2001
Pub Date : 2002
Teaching Note : Available
Organization : Dell
Industry : Computers and Information Technology
Countries : USA
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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"We're essentially moving every process in our
business online, whether it's things we do with our suppliers, our internal
operations or our customers. Everything is moving online, and www.dell.com is at
the core of that."
- Michael Dell, CEO, DELL Computer Corporation.
Background Note
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DELL Computer Corporation's (DELL) founder, Michael Dell
(Dell) is often credited with bringing about a revolution in the personal
computer industry.
After a late entry into the PC business in 1984, Dell put in place a new
business paradigm.
In DELL's direct model (See Exhibit I), there were no
retailers or resellers.
By eliminating intermediaries and managing its inventory and distribution
process efficiently, DELL offered its customers more powerful and customized
computers at prices much lower than its competitors. |
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The company could incorporate the latest technology in its product lines much
before its competitors did, as it kept only a maximum of six days of
inventory while most of its competitors stocked inventory for about 40 days.
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DELL had started its Internet initiative in the late
1980s to provide customer support.
Whenever DELL received a call from its customers for support, DELL
customer-care executives advised them to obtain a new disk driver or
some other software update available at DELL.
The customer had the choice of receiving the software on a diskette,
which was expensive, or to download the software.
Initially, these
software downloads were made available from a DELL Bulletin Board site
on CompuServe1. |
Excerpts >>
1]
CompuServe, a wholly owned subsidiary of America Online, provides Internet
services. The company started its operations by offering electronic mail
services and technical support to personal computer users, and expanded its
services by providing wide-area networking capabilities to corporate clients,
programming, portal content and an Internet service provider.
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