Dell: Supply Chain Management and Electronic Commerce Essay

Dell: Supply Chain Management and Electronic Commerce Essay

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Introduction:

Dell, one of the largest technological corporations in the world, sells personal computers, software, computer peripherals and other digital products among the world. According to the Fortune 500 list, Dell is currently listed as number 51. Dell is well known for its customer-oriented services such as supply chain management and electronic commerce. More specifically, the supply chain management (SCM) used by Dell allows customers to build their own PC online and successfully satisfies each customer’s specification. The selling and buying of products in Dell is conducted over electronic systems, for instance, online transaction process enables consumers attain various services through the Internet. Such considerate services advanced Dell among other computer retailers.
The key problem area:

Customer Service is the linchpin of success for many organizations as a way to gain more customers, especially for a large company like Dell. Unfortunately, Dell’s reputation for customer service, which used to be very strong, has been rather poor since it moved its call center offshore. As the quality of its customer service goes down, consumers like Jeff Jarvis posted a blog, “ Dell lies, Dell sucks”, which successfully stroke a chord with a lot of consumers who had similar experiences. Such “Dell Hell” blogs have had a great negative impact on Dell’s reputation, resulting in a slowed growth in its revenue. In order to solve this problem, the former CEO Kevin Rollins announced plans to invest $150 million in customer service improvement and shift Dick Hunter from head of manufacturing to head of customer service. Dick Hunter responded to the challenge by expanding the customer service center and starting monitoring phone r...


... middle of paper ...


... sides adjust based on shared information. A more democratic leadership style has encouraged stronger employee commitment and more organizational citizenship behaviors in Dell. With these improvements in Dell’s customer service, customers show more satisfaction and are more willing to buy Dell’s products. In conclusion, by detecting and solving problems in Dell’s customer service, its organizational wellbeing has been greatly enhanced and it becomes more competitive in the market.










Reference:

Jeff Jarvis (2005). Dell lies Dell sucks. [ONLINE] Available at: http://buzzmachine.com/2005/06/21/dell-lies-dell-sucks/. [Last Accessed 2013 Nov 29].

American Customer Satisfaction Index (2013). Customer Satisfaction. [ONLINE] Available at: http://www.theacsi.org/index.php?option=com_content&view=article&id=149&catid=&Itemid=214&c=Dell. [Last Accessed 2013 Nov 29].

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