Dell has grown significantly through e-commerce by implementing a disintermediated and real-time production supply chain model. Dell cuts out retailers by selling directly to customers online. Dell also only manufactures PCs after receiving customer orders using just-in-time production, allowing Dell to ship PCs within 24 hours while reducing inventory costs. Dell's e-commerce website allows for product customization, online ordering and payment, order tracking, and customer support, fueling over $1 million in online sales by 1997.

1. Dell growing with e-Commerce
By:- Saurabh Kumar
Roll Number :- 15

2. Defining e-Commerce
E-commerce refers to business transactions
and communications that are carried out
through computers - over networks and the
internet. This includes buying and selling
goods and services, funds transfers and
other commercial communications.

3. Understanding Dell’s supply chain
 Dellis capable of shipping a PC within 24
hours of receiving and order.
Traditional supply chain concept

4. How it is different ?
At Dell, the traditional supply chain has two
fundamental differences.
• Disintermediation
• Real-Time production

5. Disintermediation & RTP/JIT

6. Disintermediation
 Disintermediation – the outside retailer is cut
out of the process. This reduces time and
costs in the process and also ensures Dell is
better positioned to understand its
customers’ needs directly.

7. Real Time Production/ Just In Time
• supply chain costs are reduced on the storage side.
• Each individual PC that is ordered is only manufactured AFTER the
order is received and only using the freshest raw materials, which are
delivered to the factory several times a day.
• Each computer has been paid for and has been built for a
specific customer before it is shipped.
•Real time production ensures no costs are incurred from rising inventory
stocks. Output is always driven by actual customer demand.

8. How e-Commerce is helping Dell
 Itstarted with e-mail order and ordering using
toll-free phone numbers.
 In 1996, www.dell.come came into existence.
 $1 million sales by 1997 through online
order.

9.  Dell’s site provides :-
 Product customization
 Cost difference
 Variety of options on making payment.
 Order tracking
 Automated placement of parts order to supplier
 Supports 28 languages

10.  Building confidence through excellent pre
and post sales support.
 Customer can create and view service record
online with service tag code.
 Website works as communication tool for
news, press release and general information
to build trust among customers.