Presented by Bhumi Shah 07 Geeta Honrao 10 Jessica Poddar 13 Swapnil Khandare - 29

DISTRIBUTION NETWORK OF DELL

DELL AT A GLANCE
American multinational computer technology corporation Based in 1 Dell Way, Round Rock, Texas, United States Develops, sells and supports computers and related products and services. Started in Michael Dells dorm room at the University of Texas in 1984 The company is one of the largest technological corporations in the world Employs more than 1,10,000 people worldwide. Listed at number 44 in the Fortune 500 list.

DELL CURRENT STATISTICS

Operating income Revenue US$ 04.43 US$ 63.07 billion billion

Net income US$ 03.49 billion

Total assets US$ 44.53 billion

Total equity US$ 08.91 billion

MICHAEL DELL
College dropout
Changed how computers were sold Started his business with $1000 in capital Now worth $17.3 billion

Dells distribution strategy

Distribution refers to steps taken to move and store a product from supplier stage to customer stage in the supply chain Dell has adopted direct distribution channel It sells its product to end user customer /corporate customers. Uses direct sales model via Internet and Telephone network. Dells distribution network: Manufacturer storage with direct shipping Manufacturer storage with direct shipping and intransit merge

Dell online
Started in 1996 website www.dell.com Dell online is a high success story industry analyst Millions of people visit the website each week and company generates millions of dollars revenue. Dells business model is to let the customer configure the product on the web and fulfill within 36 hours. Customers can check the order status and also get the technical help online.

Dells distribution network

Dells distribution network: Manufacturer storage with direct shipping Manufacturer storage with direct shipping and intransit merge

Manufacturer storage with direct shipping

in-transit merge network

Dells direct distribution vs. industry indirect distribution

Why is dells direct model successful?

Direct Sales

Supplier Integration

Build-to-order

Together these allow for maximum effectiveness with minimum cost

Direct sales

BUILD TO - ORDER

Supplier Integration

DELLs VALUE WEB MODEL

DELLs VALUE WEB MODEL

Component Suppliers

Component supplier
The suppliers of high-tech components, such as microprocessors and software provided by firms such as Intel and Microsoft The low-tech, low-differentiation components manufacturers who compete on prices and availability.
High tech components Rely only on big players

Low tech components

Small multiple players

DELLs VALUE WEB MODEL

CMs/OEMS

Original equipment Manufacturer (OEM)

The OEMs traditionally would receive all the parts from their suppliers, assemble the computers in their production lines and ship them over to their distributors, or Corporate resellers. e.g. Company XYZ receive parts from Intel (processor), Microsoft (software) then this company assemble the computer to Santech computer.
Microsoft, Intel
Supplier

XYZ
OEM

DELL

DELLs VALUE WEB MODEL

Distributors

Distributors
They generally supply to corporate resellers and other distributors. They carry large quantities of different products, to increase their leverage when dealing with their customers. They also provide specific software, peripherals, furniture, etc, as well as service. e.g. Ingram Micro, Tech Data, Computer 2000, and Santech .
DELL Distributor

Other distributor & customer

DELLs VALUE WEB MODEL

System integrators

Corporate resellers/System Integrators

The corporate resellers or systems integrators generally buy systems directly from manufacturers and install these systems at their corporate clients. These are firms whose main purpose is to provide customization to their clients.
integrate software, hardware, and network capabilities

Manufacturer

System Integrators

Customer

COLLABORATORS OF DELL
Particular Component parts Third party hardware and software supplier Distributors Retailers Name of companies Intel(microprocessors), Sony(picture tube), Microsoft Ingram Micro, Tech Data, Computer 2000, and Santech . Wal-Mart, Office Max, Computer City, CompUSA and Micro-Center Wang, Unisys, and IBM Wang, Unisys, IBM and BancTec

System integration
Repair and Support companies

Benefits OF DIRECT DISTRIBUTION to company

CASH

COST

CRM

DEMAND FORECAST
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Benefits OF DIRECT DISTRIBUTION to CUSTOMER

Tailored offerings from Dell in terms of add-on products and services. Very customizable systems at an affordable rate, since Dell manufacturing builds specifically for each customer.

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RFID @ DELL
RFID stands for Radio Frequency Identification Devices. RFID is a 3 part technology consisting of: A reader A receiver with decoder A Transponder

RFID APPLICATIONS
RFID stands for Radio Frequency Identification Devices. RFID is a 3 part technology consisting of: A reader A receiver with decoder A Transponder

RFID @ Dell - Manufacturing

Tracking code and Computer assembly instructions are added to the tray.

This determines the specific line to which the tray should go to.
At every stage of the assembly, the tags are read by the antenna for specific instructions.

RFID @ Dell - SHIPPING

Once assembled and tested, production information is inserted into the tags and sent to a shipping station.

At the shipping station, the RFID tag transfers data to the control PC.
This control PC uses this information to print the appropriate label.

Benefits of RFID Production stops have reduced dramatically. Labor can be allocated by minimizing repetitive activities. Returns due to wrong shipping of products have been minimized.

Thank You
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