Dell Company offers computer inputs, services, and products to customers through properly designed information systems. The company maximizes profits by adopting flexible supply chain processes. The managers of this company have implemented strategies that are aimed at minimizing the cost of intermediaries such as brokers, retailers, and wholesalers. In addition, a close interrelationship exists within all the parties in the supply chain of Dell that targets to maximize customer value and loyalty. The nature of information systems directly from suppliers to customers has made Dell Company one of the unique and profitable corporations in the world today. The company sells its products directly to the customers without engaging the efforts of intermediaries. This has approach has reduced the operational costs of the company. Remarkably, the company has divided its consumer markets into different segments on basis of geographical region, gender, age, and consumption patterns. This has helped the company to reach customers easily at reduced costs.
According to Holzner (2006), the decisions about the various supply processes are made and implemented at all the levels of management in the company. The senior managers usually make supply decisions that are implemented and affected by the other inter-departmental managers. To add on, the Company has obliged the middle-level managers to make decisions concerning supply chain facilities and optimal capacity requirements (Koehn, 2001). Dell’s customers are conformed to make direct orders for computer products to the company. The managers of the company authorize the customers to procure its products (Holzner, 2006). This close bonding between the company and its customers has made the company very competitive. In conclusion, Dell’s supply chain and the associated information systems are desirable for all businesses today.
Dell Publishing Company (2012). The American Heritage dictionary. New York: Dell.
Holzner, S. (2006). How Dell does it. New York: McGraw-Hill.
Koehn, N. F. (2001). Brand new: How entrepreneurs earned consumers’ trust from Wedgwood to Dell. Boston: Harvard Business School Press.
Mangan, J., Lalwani, C., & Butcher, T. (2008). Global logistics and supply chain management. Chichester, England: John Wiley & Sons.