Dell Supply Change And The Impact Of E-Commerce

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Member Team IV : Rico Bonar Andrietti Reiza Deasy Dewayani Riandi Ichram Widnayanto Agus Subekti Ratriani Kartika M Founded by Michael Dell in 1983 at Austin University Start by simply upgrading compatible IBM PC The single concept: Selling computer systems directly to customers Designed and built the first computer system of its own brand in 1985 DELL apply Supply-chain Integration : extends the internal supply chain by linking to the external supply chain under indirect control of the firm. Integrated relation with supplier and customer Focuses on customer orientation High Velocity Low-Cost distribution channel by direct customer relationship Build-to-order manufacturing Segmentation : - Relationship Customer - Transaction Customer •Although it might seem that Dell, with its build-to-order model, is best equipped to benefit from e-commerce, a traditional PC manufacturer, selling through distributors and retailers, may also have a lot to gain from e-commerce. Why? •How has Dell exploited the advantage of the internet to improve performance? How has Dell exploited the advantage of the internet to improve performance? Answered : ◦ Dell established a unique e-commerce model by embracing the Internet in its supply chain. Dell brings products to market faster than its competitors Customization and quick response Attract large business customers Reduce Bullwhip Effect Collecting the payments Dell brings products to market faster than its competitors ◦ Dell uses direct sales via Internet, whereas Traditional PC manufacturers previously assemble PCs ready for purchase at retail stores. PCs have life cycles of only a few months Thus, Dell enjoys early-to-market advantage. ◦ ◦ Customization and quick response ◦ Dell uses the Internet to sell its products offers a virtually unlimited variety

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