GROUP MEMBERS

V Hng Phong
o Thu Vn
Nguyn Tho Vn
L Thu Khnh Linh
L Lan Khanh
Hong Minh Ngc
Nguyn Ngc Phng
Nguyn Hi Anh
Nguyn Hng Tho
Nguyn Hng Giang
Nguyn Th Tr My
PART A
Pull-based Business Model
What is Pull-based Business
Model?
- Build-to-order model
- Start to make a product (service) only after an order for
it is placed
- Dell Computer is best known for its application of the
build-to-order model
- In this model, one begins the assembly of the
customers order (from components) almost
immediately upon receipt of the order.
- One of the primary benefits of this type of supply chain
model is the perception that each customer is receiving
a personalized product. In addition, the customer
receives it rapidly.

The differences between Pull
and Push
Pull-based Model Method
Freshness dimension: The freshness dimension
indicates the tolerance of a client towards
obsolescent data.
Latency dimension: The latency dimension
indicates the tolerance of a client when it comes to
wait the data.
Resource dimension: The resource dimension
indicates the amount of resource a client may
devote to pull data.

SWOT of Pull-based Model

PART B
DELLs Famous Supply Chain
I. DELLs
Background
Background
- American multinational
information technology
corporation
- Established on
November 4, 1984
- Tasks: develops, sells
and supports
computers and related
products and services
Michael Dell Founder of Dell

Background
Main business: laptops, netbooks, desktops
Did not emphasize the consumer market
1990s, Dell expanded its business:
Online ordering system
Branches in Europe & Asia
Started selling on website : www.Dell.com

Expand market & increase market share

Background
- Main selling channel: Online shopping
+ Searching information, bargaining, etc
+ Order own models
Reduce transaction cost

- 1999, www.Gigabuys.com low-priced computer
hardware, software, peripherals
- Continue selling Dells products on Dell.com
- Face numerous competitions
- Top leading brands in industry
II. The Direct Sales
Model of DELL Inc.

The Indirect Sale Model
Pc Makers
Distributers
Retailers
Customer
s
Customize as required
Additional services
Technical support

The Indirect Sale Model



Extra cost
Loosen relationship between customer and PC
maker companies
Hard to approach customers needs
The direct sale model
The products directly sell to the customers
through the Internet without any intermediaries
The direct sale model
Fast and convenient
Easy to access
Lower costs
Easy to capture
customers needs and
want.
Be able to make
improvement through
customers feedbacks
Strong Customer
Relationships
III. DELL In Applying Pull
Based Model & Its Success
Three Essential Principles of
Dell to Ensure its Success

1. Minimal Inventory Counts
Taking in what its guaranteed to ship to
customers
Only make enough products to fulfill
customer's orders
The JIT system
Three Essential Principles of
Dell to Ensure its Success
2. Custom-Made Finished Goods:
Eliminates the need to sell through wholesalers and
retailers
Control the products and services delivering
quality
Provide a value-added product and service

Three Essential Principles of
Dell to Ensure its Success

3. Strong Direct End-User Customer
Service technicians and customer support center







Direct sales model
Dell in applying pull-based
model
Mass customization
approach:
- These demands
can vary
from colors, sizes, to
some other special
characteristics.

Supply chain management
Builds computers only after they are ordered:
- JIT manufacturing system






Sells its computer directly to end customers:
- Suppliers -> Manufacturer (Dell)-> End users


IT supports
Gets components quickly by using Web services
Shipments are all arranged electronically







Tests its new PC models at the same time as it tests the
networks