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DIRECT TO CUSTOMER

DIRECT TO CUSTOMER. DIRECT TO CUSTOMER.

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DIRECT TO CUSTOMER

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  1. DIRECT TO CUSTOMER

  2. DIRECT TO CUSTOMER DIRECT TO CUSTOMER supports commerce transactions involving products, services, or information between businesses and consumers. Consumers typically purchase goods or services directly from a business in a consumer direct scenario and there is no involvement of any middleman thereby reducing costs and complexities and increasing efficiency and customer satisfaction. In a typical consumer direct business, customers buy directly from the business, usually a retailer, as shown in this diagram.

  3. SUPPLY CHAIN STRATEGY Internal processing Supplier Customer’s order Manufacturing Storing Merging Customer Here, the supplier and the manufacturer represent the same entity Orders are taken online or over the phone Takes place in the nearest possible facility to shipment location Stored in the manufacturing plant until all ordered products are ready to be delivered Merging centers are established to combine all finished products to order Shipped to customer in no time

  4. CONSUMER DIRECT BUSINESS MODEL • FEATURES • Customer is the beginning and end of the process. • Goods are manufactured and supplied only on demand. • All wings of supply chain are managed and coordinated by the business itself. • Goods are mostly built-to-order. Goods manufactured this way are customized according to consumer specifications. • This cycle continues with operation innovations based on customer feedback. This feedback is conveyed to the business directly and innovations are made accordingly. Weekly orders made to suppliers based on forecast Order processing Supply on demand Shipped on board

  5. THE PHENOMENON NAMED DELL INC. What started out in 1983 dealing in hard drive upgrades with annual sales of $6 million had become the topper of the PC market by 2000 with revenues worth $25 billion. This is the success story of Michael Dell, founder of Dell Inc. The innovations in supply chain and manufacturing have been the main reason behind the meteoric rise of Dell.

  6. We plan to serve you, our customers, with a single-minded purpose and drive the innovations that will help power your dreams. Michael Dell Founder, Dell Inc. DELL – What the customer and business have to say ? It has been seven years since I bought my first laptop from Dell back in 2006. I have had quite a compatible relationship with my computer ever since. The genius of Dell lies in the customer specifications it offers at relatively low costs. Dell has been instrumental in configuring my computers in accordance with my requirements and that is what sets it apart. It is a commendable job on the part of a computer giant like Dell to look into every requirement of its customer. I have received deliveries for all my computers in a week’s time which leaves me astonished. The amount of heed that Dell pays into customer feedback is exemplary. The efficiency, innovation and uniqueness of Dell is what sets it apart. Bijay Agarwal CFO, Cresmac Foundry Pvt. Ltd. (a customer of Dell for the past 7 years)

  7. BENEFITS OF CUSTOMER DIRECT MODEL • Enhancing customer value By dealing directly with its customers, the business group can find out exactly what they need and want. This ensures that expectations are met and that customers are not disappointed. In addition, feedback is received directly by the manufacturers who can make innovations accordingly and effectively to please customers in future. • Highly personalized service Goods and services are rendered when the demand for it arises. The customer can specify the features they want. These specifications in good and services lead in greater consumer satisfaction. • Incorporation of latest technologies Goods are manufactured and supplied on a just-in-time (JIT), build-to-order (BTO) basis. Therefore, if a new technology emerges it can be included immediately. A company with stocks of ready-made goods cannot do this. • Minimal inventory costs The JIT/BTO approach also means that these goods need not be stocked in godowns. Stock, which is also called inventory, costs money. By manufacturing only on demand, inventory costs are reduced significantly.

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