DELL CORPORATION IS THE ONE OF THE LARGEST BUSINESS FIRM IN THE WORLD. THEY ARE THE NUMBER ONE DIRECT DISTRIBUTORS IN THE WORLD. DELL IS A MAJOR BUSINESS FIRM IN THE CASE OF COMPUTERS. THEY HAVE A LONG DISTRIBUTION NETWORK MORE THAN IN 170 COUNTRIES. DIRECT DISTRIBUTION IS THE MAJOR COMPETITIVE EDGE OF DELL COMPUTERS.
Dell was founded in 1984 by Michael Dell, who, in 2002, was the computer industry’s longest-tenured chief executive officer. The company was based on a simple concept: that Dell could best understand consumer needs and efficiently provide the most effective computing solutions to meet those needs by selling computer systems directly to customers. This direct business model eliminated retailers, who added unnecessary time and cost, and also allowed the company to build every system to order, offering customers powerful, richly configured systems at competitive prices. Dell introduced the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels, turning over inventory an average of every four days. In less than two decades, Dell became the number-one retailer of personal computers, outselling IBM, Hewlett-Packard, and Compaq.
Two trends in the early 1980s allowed Michael Dell to radically re-engineer the PC industry value chain. First, corporate customers were becoming increasingly sophisticated and therefore did not require intense personal selling by salespeople. By the late 1980s, individuals—especially those buying their second or third PCs—had become savvy and experienced technology users. Second, the different components of a PC—the monitor, keyboard,
memory, disk drive, software, and so on—became standard modules, permitting mass customization in PC system configuration. Dell Computer’s direct model departed from the industry’s historical rules on several fronts: The company outsourced all components but performed assembly. It eliminated retailers and shipped directly from its factories to end customers. It took customized orders for hardware and software over the phone or via the Internet. And it designed an integrated supply chain linking Dell’s suppliers very closely to its assembly factories and order-intake system.
The logistics system of Dell corporation was very different from others , all of parts for a computer is coming from different sectors and assembling from one place. it help to make the system according to the needs and wants of customer. this is main competitive edge of Dell.
Dell recognized early the need for speed, or velocity, quickening the pace at every step of business. The company learned that the more workers handled, or touched, the product along the assembly process, the longer the process took and the greater the probability of quality concerns. Dell began to track and systematically reduce the number of “touches” along the line, driving it to zero. The company took orders from customers and fulfilled them by buying and assembling the needed components. Customers got exactly the configuration they desired, and Dell reduced its need for plants, equipment, and R&D. As a result, Dell turned a product business into a service industry.
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