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Computer Application to business
Group members:Sadia Ataullah
E-Commerce Within Delland How This New Way of
Doing Business is Managed
What Is E-Commerce?
How Does Dell’s Supply Chain Work?
How Does Dell Use E-Commerce To
Improve Supply Chain?
How Dell’s E-Commerce Focus Improves
Q1. Discuss the benefits of e-commerce for businesses and
Benefits to Business:
1. Can expand their market to national and international market
2. E-Commerce helps organization to reduce the cost to create process, distribute, retrieve and manage the paper.
3. E-Commerce reduces paper work a lot.4. E-Commerce increased the productivity of the organization
by supporting "pull" type supply management.5. Customization of products
Advantages to the Customer1. 24x7 support. Customer can do transactions for the
product or enquiry about any product/services provided by a company anytime, anywhere from any location
2. provides user more options and quicker delivery of products
3. provides user more options to compare and select the cheaper and better option.
4. Readily available information5. E-Commerce increases competition among the
organizations and as result organizations provides considerable discounts to customers
Q2. Explain the term disintermediation. Why is disintermediation so important to Dell’s success?
Disintermediation is defined as the removal of intermediaries in a supply chain, or "cutting out the middlemen". Rather than going through traditional distribution channels, which had some type of intermediate such as a distributor, wholesaler, broker, or agent companies may now deal with every customer directly.
Disintermediation may decrease the cost of servicing customers and may allow the manufacturer to increase profit margins if total costs are actually decreased by eliminating distributors.
Dell uses this strategy to reduce time and costs in the process and also ensures Dell is better positioned to understand its customers’ needs directly. Crucially, Dell’s supply chain costs are reduced on the storage side too by its efficient relationship between orders and production.
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. This is known as just-in-time production or real time production. There is no warehouse for either raw components or finished goods. Each computer has been paid for and has been built for a specific customer before it is shipped.
Q3. What is just-in-production? What benefits does this bring to an organization?
JUST-IN-TIME PRODUCTION: An inventory strategies that an
organization makes with collaboration of their employees to increase efficiency and decrease waste by receiving only as they are needed in the production process, thereby reducing production costs.
1) It says that business manufactures goods as it is ordered. If there are no customers to purchase goods, production will stop.
2) Company with less inventory has much higher inventory turnover ratio that a company with equivalent production.
3) High inventory turnover ratios are considered a good sign of efficient and effective purchasing management, productive use of advertisement and campaigns aimed at generating sales.
CONCLUSION: Strategy of just-in-time production is
also used by dell that is after receiving order they start off with fresh raw material and make their customer order complete. There is no warehouse for any raw or final material to keep their computers there. They take order first than they start manufacturing with all fresh material
Q4. How can the internet and e-commerce contribute to customer service levels?