How Dell Computer Fulfills
Customer Repair Orders
By: Aaron Johansen
Agenda
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Summary of Case
Background Information
Financial Situation
Competition
Answer Case Questions
Case Summary
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Trying to provide next-day shipments for its
repairs, upgrades, and other service to keep
its customer services at a high level
Using an online intelligent inventory
optimization system from LPA software
Use repairable parts to limit time and reduce
costs
Team of ten employees can successfully
process more than 6,000 service orders
every day
Background
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Michael Dell in 1984
Headquarters in Round
Rock, Texas
Kevin Rollins is
currently Dell’s chief
executive officer
Known as Dell
Computer Corporation
but changed its name in
2003 to Dell Inc.
Financial Situation
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13.6% increase in
revenues from 2002 to
2003
Americas consisted of
69% of Sales
Europe/Africa
consisted of 21% of
sales
Asia consisted of 10%
of sales
Competition
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Gateway Inc.
Apple Computer Inc.
IBM Corporation
Circuit City Group Inc.
Sony Corporation
And Many Others
What portions of order fulfillment
are improved by this process?
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The portion of order fulfillment that are improved
are the order fulfillment delays which this system
enables Dell to communicate critical information
to external and internal customers.
This reduces the order fulfillment delays and a
team of 10 employees can successfully process
more than 6,000 service orders every day.
The system allows Dell to factor the product of
reusable parts into its supply projection.
Enter xelus.com and find information about
its inventory optimization products. List the
capabilities of the products.
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To optimize global service inventory and supply
strategies
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To enable global planning while comprehending
regional operating parameters
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To use inventory already owned before buying new
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To find solutions for industry-specific practices and
customer-specific workflows
To leverage knowledge of equipment service operations
to customers in aviation, defense, high-tech, telecom,
surface transportation and energy
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Enter dell.com and find information about
how Dell conducts repair (warranty)
customer service.
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All warranty repair arrangements must be made
through Dell Technical Support.
The Dell Limited Warranty does not cover system
repairs for damages due to external causes,
including accident, abuse, misuse, problems with
electrical power, servicing not authorized by Dell,
usage not in accordance with product instructions,
failure to perform required preventive maintenance,
and problems caused by use of parts and
components not supplied by Dell.
Relate this case to the discussion
of “returns” in this chapter.
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The chapter states that the number two reason
shoppers refuse to buy online is because of the
“absence of a good return mechanism.”
During the one-year period beginning on the
invoice date, Dell will repair or replace products
that are returned to Dell's facility. To request
return service, you must call Dell's Customer
Technical Support within the warranty period.
Dell sells over half of their products online
What competitive advantage is
provided by this Dell system?
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Dell’s new online intelligent inventory
optimization system from LPA software is a
competitive advantage. This system allows
Dell to fulfill customer service repair orders in
a limited amount of time. It also reduces
inventory cost and reduces order fulfillment
delays.
Any Questions