SELLING PROCESS OF DELL

Dell at a Glance

Globally 2nd in computer hardware design, manufacturing and distribution with a market share of around 16%.(HP is 1st with 19%) Founded by Michael Dell in 1984. 1987 --first computer systems company to offer next-day, on-site product service . Greater than $50 Million sales per day through the internet with yearly revenue of $55.908 Billion with employee base of 78,000. Ventured in areas of storage products, workstation systems, online technical support, appliance servers, network switches, standards-based point-of-sale offering for retail customers, recycling .

How do they do it?

Dells success is a combination of:
Direct Sales Build-to-order Supplier Integration

Together these allow for maximum effectiveness with minimum cost

Dells Direct Model

Direct relationship, most efficient path Low cost and best value Built to order Customized systems Superior, tailored service and support Highest quality and most relevant technology

Direct Sales
A direct sales system allows Dell to:
Cut costs Build relationships with

its customers
Deliver exactly what the

customer wants

Build-to-order
A build to order system allows Dell to: Increase inventory velocity
Minimize inventory costs Build exactly the computer

that its customers want

Minimize the need for

forecasting

Supplier Integration
Supplier integration allows Dell to maximize the benefit of its other core competencies Here is how they do it: Location of supplier warehouses Extranet Meetings with suppliers

B2B Model
INTRODUCTION Business model for dealing with large business entities. Server- to- server communication over internet integrating both supplier & buyer system. Shopping online with customers ERP Procurement Application with simultaneous up gradation. No duplicate information entry. Easy process, less cycle time, less errors.

B2B e-Commerce Solutions

1.

Connection to more than 20 different industry E-procurement (ERP) tools & usage of standard formatting protocols.
Example- Ariba, Peoplesoft, SAP, EER, Peregrine,etc. Basic division into 2 parts: Supplier hosted solutions Dell will host the catalog . Customers will access their own custom catalog to retrieve their personalized configurations. Catalog maintenance by sales representatives.

Buyer Hosted Solution

Most complex and require resources, time and effort to

implement.
Catalog information exported to a spreadsheet or file

and either sent to the customer directly for inclusion in their own system or moved to the E-Procurement vendor's network to be utilized and accessed there.

Information can become outdated so regular updates required.

Customer bears a large burden of catalog

maintenance.

Conclusion
The secret to Dells success is the synergy between all of its competencies The direct sales system both enables and relies on the build-to-order system The build to order system both enables and relies on the supplier integration system And Dells focus on collaboration at every level enables it all