Apple And Dell 's Direct Sales Strategy

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Demand management Apple and Dell both use a direct sales strategy. The Direct sales strategy detects the trends of sales and by sharing this information with its suppliers they plan their operations more efficiently. Direct sales have benefits in fulfilling the needs of their customers’. Comparable with Dell, Apple stores track demand at each store and each hour and therefore adjust production forecasts daily according to the demand of each product. Dell focuses on using large databases and data analysis for forecasting demand on their products. Furthermore, Dell utilities a demand forecast to identify the quantity of the components that build up a extensive range of configurations to their laptops and therefore allow them to accept…show more content…
This allows Dell to have more control over its product offering, by eliminating retailers and therefore have more control over the type of customer service its customer base receives. Procurement and sourcing Apple outsources its manufacturing, assembly and logistics as their contract manufacturers as these outsourcing companies are able to perform value creation functions at a lower cost due to low cost location Apple has also open its supply chain to the Fair Labour Association (FLA). They ensure compliance with their Supplier Code of Conduct by conducting hundreds of audits per year worldwide and work with their suppliers to make sure any problems are corrected. Most sourcing of Dell is done globally, Dell outsources most components from all locations from their headquarters, which is an advantage to Dell, which allows Dell to strengthen their buying power and negotiate better terms from their suppliers. However, it is indicated that companies who outsource bear risks in regards to holdups due to the high dependence on its outsourcing partners in addition to loss of control and information to their suppliers. Production and operations management Dell products are build-to-order as customers are able to configure and place orders directly with the company via the phone or its website. The advantages to Dell providing custom-made products is that it eliminates selling to wholesalers and retailers, therefore reducing their mark-up

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