How Dell computer fulfills customer repair orders Danny Shorb February 24, 2005

Agenda Summary Facts about Dell Financials Competitors Case Questions

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.

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

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)

Competitors www.gateway.com www.ibm.com www.apple.com www.hp.com

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

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

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.

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 Dell’s sales are online

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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