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7/28/2019 DELL - BASICS OF MARKETING.pptx
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DISTRIBUTION NETWORKOF DELL
Presented by
Bhumi Shah07
Geeta Honrao10
Jessica Poddar
13Swapnil Khandare - 29
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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 theFortune 500 list.
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DELLCURRENT STATISTICS
Revenue
US$ 63.07
billion
Operating
income
US$ 04.43
billion
Net income
US$ 03.49
billion
Total assets
US$ 44.53
billion
Total equity
US$ 08.91
billion
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MICHAEL DELL
College dropout
Changed how computers were sold
Started his business with $1000 in capital
Now worth $17.3 billion
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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
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Dell online
Started in 1996
website www.dell.com
Dell online is a high success storyindustry 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 producton the web and fulfill within 36 hours.
Customers can check the order status and also get the technical
help online.
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Dells distribution network
Dells distribution network:
Manufacturer storage with direct shipping
Manufacturer storage with direct shipping and intransit merge
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Manufacturer storage with direct
shipping
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in-transit merge network
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Dells direct distribution
vs.
industry indirect distribution
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Why is dells direct model successful?
Direct Sales
Build-to-orderSupplier
Integration
Together these allow for maximum effectiveness with minimum cost
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Direct sales
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BUILDTO - ORDER
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Supplier Integration
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DELLs VALUE WEB MODEL
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Component
Suppliers
DELLs VALUE WEB MODEL
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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
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CMs/OEMS
DELLs VALUE WEB MODEL
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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,
IntelXYZ DELL
Supplier OEM
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Distributors
DELLs VALUE WEB MODEL
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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 DistributorOther distributor
& customer
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System
integrators
DELLs VALUE WEB MODEL
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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.
ManufacturerSystem
IntegratorsCustomer
integrate software, hardware, and network
capabilities
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Particular Name of companies
Component parts Intel(microprocessors),
Sony(picture tube),
Third party hardware and software
supplier
Microsoft
Distributors Ingram Micro, Tech Data, Computer
2000, and Santech .
Retailers Wal-Mart, Office Max, Computer City,
CompUSA and Micro-Center
System integration Wang, Unisys, and IBM
Repair and Support companies Wang, Unisys, IBM and BancTec
COLLABORATORS OF DELL
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Benefits OF DIRECT DISTRIBUTION
to company
25
CASH COST
CRMDEMAND
FORECAST
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Tailored offerings from Dell in
terms of add-on products and
services.
Very customizable systems at an
affordable rate, since Dellmanufacturing builds specifically
for each customer.
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Benefits OF DIRECT DISTRIBUTION
to 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
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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
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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.
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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.
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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.
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Thank You
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