Dell
Logistics relates to the concept of customer relationship management (CRM) to gain
or maintain consumer support. Discuss the various ways in which a company like
Dell utilizes this logistics strategy. Respond to at least two of your fellow classmates’
postings.
Dell was a true innovator in their vision to deliver the right product at the right time at the
best possible value. Dell’s vision was to sell more computers than anyone else, service
growing markets by supplying computers, sell cheaper computers than anyone else could
hope and deliver more efficiently than competitors without any retail outlets.
The model was simply to eliminate the middle men in the supply chain which brings
computers to the customer, eliminate the wholesaler and the retailer. Dell’s also wanted to
eliminate inventory as inventory in the information technology industry is a known
liability
because
parts
become
obsolete.
In the early days Dell started in the US were computer sales began to increase at a rapid
rate. Dell always endeavoured to fulfil their strategy of not dealing with customers in
person by initially taking orders by mail and fax, making computers to order and supplying
via fed ex. As information technology systems developed so did Dell’s logistics systems. It
was the internet that contributed to Dell’s surge in sales, at a time when many other
businesses were experience some global slowing in the late 90’s early 2000’s. Advanced
logistics systems interfaced to a web environment provide Dell with the ability to process
orders real time, updating relevant accounting, warehouse, production, purchasing and
through life support systems working in parallel.
Reference
Harrison, A. & van Hoek, R. (2011). Logistics management and strategy: Competing through
the supply chain (4th ed). London, England: Prentice Hall Financial Times. ISBN: 978-0273-73022-4