Case study: Dell—Distribution and supply chain innovation
There was a time, not too long ago, when Dell dominated the market for personal computers PCs. It was a time that saw the company spawn a whole new industry of direct buying. Dell focused on a strategy that bypassed distribution channels by avoiding retailers and wholesalers altogether. Instead of dealing with the added costs of distribution, Dell made the decision to sell directly to consumers. The idea was to provide direct customer support, limit inventory levels and provide a relatively inexpensive customised finished good.
This paper will analyze the unique value chain of the company. Furthermore, the paper will evaluate how Dell has used its direct sales and build-to-order model to develop an exceptional supply chain. Donnelly et al, emphasized that there are two important reasons on why we should study about management.