Gateway: A Direct Sales Manufacturer

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Presentation transcript:

Gateway: A Direct Sales Manufacturer Danah Al-Zaben 200900141 Norah Al-Rashdi 200800464 Rawan Saad 200800184

Outline: Introduction. (Danah) Decision Phases of Gateway’s Supply Chain. (Danah) Cycle View of Gateway. (Norah) Push/Pull View of Gateway. (Rawan) Conclusion.

Introduction: Gateway is a hardware CO. which was found by Ted Waitt in sep 1985 in USA, California. It develops, manufactures, supports, and markets a wide range of personal computers, computer monitors, servers and computer accessories.

Decision Phases of Gateway’s Supply Chain: Supply chain strategy or design: Gateway had multiple production facilities in US, it brought many advantages/ Dell CO. had one facility in US (Texas). Gateway uses the “retail channel ‘’ to sell the products directly to retailers in stores.

Decision Phases of Gateway’s Supply Chain: Supply chain planning: Gateway planned to start producing in California then grow their production. Planned to keep prices low. Planned to keep promotions and ads in- house and get a local help. Planned to have special features of the products to offer to customers.

Decision Phases of Gateway’s Supply Chain: Supply chain operation: Had their sold products in retail stores. Produced certain amount of products depending on the customers’ needs. Didn’t have finished goods inventory at the retail stores… big companies shouldn’t have FG inventory unless the time line is long.

Figure 2: Cycle View (Bouzid, n.d, p.14). Cycle View of Gateway: Figure 2: Cycle View (Bouzid, n.d, p.14).

Cycle View of Gateway: Gateway not carry any finished goods inventory at retail stores: Gateway has an intelligent decision in not keeping items in their inventory, because customers could wait when it’s about computers order, for that they had no inventory on risk. Retail stores carry any finished goods inventory: Some companies who have retail stores they should keep some inventory, but on the other hand an electronic items are always risky to keep inventory, because computers are easy to get out dated, and everyday there is a change.

Push/Pull View of Gateway: The difference between push and pull processes. Gateway utilizes the pull processes.

Push/Pull View of Gateway: Gateway serve three major segments: - The direct segment ( internet and call centers). - The professional segment ( telephone-based and field sales teams). - The retail segment (retail channel). Dell sells directly and able to cut cost (carrying finished product inventory).

Conclusion: Supply chain is significant for Gateway Inc. to maximize its profitability and satisfy its customers’ needs by focusing on the use of pull view which helped the company grow its sales and diverse its production locations.

Thank You For Your Listening…. Do You Have Any Question ?!!!!!

References: Bouzid, Y. (n.d.). Gateway: A Direct Sales Manufacturer. Gateway: A Direct Sales Manufacturer. Retrieved September 15, 2012, from www.aui.ma/personal/~A.Berrado/MGT5309/GatewayInc.pdf Khan, T. (n.d.). Mohsin Supply Chain.Scribd. Retrieved September 14, 2012, from http://www.scribd.com/doc/60381256/Mohsin-Supply-Chain Press. (2004). Gateway, Inc. History: company history,Retrieved September 15, 2012 from http://www.fundinguniverse.com/company- histories/gateway-inc-history/ Understanding the Supply Chain. (2012). Retrieved from www.umflint.edu/~weli/.../understand.pdf