How Dell computer fulfills customer repair orders

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How Dell computer fulfills customer repair orders

• Danny Shorb
• February 24, 2005

2
Agenda

• Summary
• Facts about Dell
• Financials
• Competitors
• Case Questions

3
Summary

• Dell is trying to integrate its company in order
  to provide next day shipments on customer orders
  and repairs to provide the best customer service.
• Dell is using an LPA software system to integrate
  its company with its suppliers and distributors.
• Dell is also using parts that are repairable to
  cut down on time in order to provide next day
  shipping.

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Facts about Dell

• Started by Michael Dell in 1984
• Employs approximately 55,200 people worldwide
• Corporate Headquarters based in Round Rock, Texas
• Launched www.Dell.com in 1994

5
Financials

• 49.2 billion dollars over the past year (up 19)
• First company to record daily online sales over
  1 million dollars
• Net Income of 3.04 billion dollars (up 15)
• Michael Dell- 3.01 million dollars per year
  (chairman)
• Kevin Rollins- 2.53 millions dollars per year
  (CEO)

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Competitors

• www.gateway.com
• www.ibm.com
• www.apple.com
• www.hp.com

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What portions of order fulfillment are improved
by this process?

• The portions of order fulfillment that are
  improved by the LPA software are delivery time
  and customization of a computer for each customer
  
• Orders go directly to the production area of the
  plant
• A team of ten employees can process more than
  6,000 service orders per day

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Enter xelus.com and find information about its
inventory optimization products. List the
capabilities of the products.

• Optimize global service inventory and supply
  strategies.
• Use inventory already owned before buying new
  exploit returns, repair, redeployment and other
  tactics before purchasing incremental assets.
• Manage by exception through automated decision
  support within tolerances.
• Enable industry-specific best practices and
  customer-specific workflows

9
Enter dell.com and find information about how
Dell conducts repair (warranty) customer service.

• All repair claims must be done through the
  technical support services at Dell.
• The warranty covers defects in materials and
  workmanship in your, our end-user customer's or
  Dell-branded hardware products, including
  Dell-branded peripheral products.
• Dell products come with either a 90-day, 1- year,
  2-year, 3-year or 4-year limited warranty,
  depending on the product purchased.

10
Relate this case to the discussion of returns
in this chapter.

• The chapter states that the number two reason
  shoppers refuse to buy online is because of the
  absence of a good return mechanism.
• Dell has a one year policy on most returns
• Inquiries must be made through Dell technical
  support
• This is a reason why most of Dells sales are
  online

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What competitive advantage is provided by this
Dell system?

• The competitive advantage that Dell has is the
  LPA software. This software allows Dell satisfy
  customer orders in a short amount of time.
• The LPA software also allows Dell to keep
  inventory costs low and reduce delays on customer
  orders.

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Any Questions