How Dell Computer Fulfills Customer Repair Orders By: Aaron Johansen

Agenda Summary of Case Background Information Financial Situation Competition Answer Case Questions

Case Summary Trying to provide next-day shipments for its repairs, upgrades, and other service to keep its customer services at a high level Using an online intelligent inventory optimization system from LPA software Use repairable parts to limit time and reduce costs Team of ten employees can successfully process more than 6,000 service orders every day

Background Michael Dell in 1984 Headquarters in Round Rock, Texas Kevin Rollins is currently Dell’s chief executive officer Known as Dell Computer Corporation but changed its name in 2003 to Dell Inc.

Financial Situation 13.6% increase in revenues from 2002 to 2003 Americas consisted of 69% of Sales Europe/Africa consisted of 21% of sales Asia consisted of 10% of sales

Competition Gateway Inc. Apple Computer Inc. IBM Corporation Circuit City Group Inc. Sony Corporation And Many Others

What portions of order fulfillment are improved by this process? The portion of order fulfillment that are improved are the order fulfillment delays which this system enables Dell to communicate critical information to external and internal customers. This reduces the order fulfillment delays and a team of 10 employees can successfully process more than 6,000 service orders every day. The system allows Dell to factor the product of reusable parts into its supply projection.

Enter xelus.com and find information about its inventory optimization products. List the capabilities of the products. To optimize global service inventory and supply strategies To enable global planning while comprehending regional operating parameters To use inventory already owned before buying new To find solutions for industry-specific practices and customer-specific workflows To leverage knowledge of equipment service operations to customers in aviation, defense, high-tech, telecom, surface transportation and energy

Enter dell.com and find information about how Dell conducts repair (warranty) customer service. All warranty repair arrangements must be made through Dell Technical Support. The Dell Limited Warranty does not cover system repairs for damages due to external causes, including accident, abuse, misuse, problems with electrical power, servicing not authorized by Dell, usage not in accordance with product instructions, failure to perform required preventive maintenance, and problems caused by use of parts and components not supplied by Dell.

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.” During the one-year period beginning on the invoice date, Dell will repair or replace products that are returned to Dell's facility. To request return service, you must call Dell's Customer Technical Support within the warranty period. Dell sells over half of their products online

What competitive advantage is provided by this Dell system? Dell’s new online intelligent inventory optimization system from LPA software is a competitive advantage. This system allows Dell to fulfill customer service repair orders in a limited amount of time. It also reduces inventory cost and reduces order fulfillment delays.

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