In line with this strategy, Dell plans to develop specific models for education.
However, the company has all these options ready the moment the customer places the order because they have a demand history to call upon. Nowadays, it seems as if Dell has somewhat abandoned that strategy altogether with respect to offering customised PCs as those options are no longer as vital as they once were.
Dell focused on a strategy that bypassed distribution channels by avoiding retailers and wholesalers altogether. Close relationships with customers through direct sales, helps Dell precisely meet the demand and maintain low inventory as possible.
An Example of a Push-Pull Strategy Instead of manufacturing the same product from a fixed materials list, a push-pull strategy combines a fixed materials list with a flexible materials list, one where the flexibility is tied into the options customers choose.
Aside introducing a new model and customer-centric strategy, it is important for Dell to excel with their CTO model a model they cannot, to as it brings in billions of dollars in revenue and the new improvised supply chain strategy.
Here is an example of what the ordering process may look like for a company offering a customised finished good through a push-pull process. The idea was to provide direct customer support, limit inventory levels and provide a relatively inexpensive customised finished good.
For China, it is optimizing their offerings with different colors, richer configuration and thinner form factors. Through the direct sales approach, Dell builds systems to order, which helps the company to introduce new products and technologies faster than its competitors.
However, Dell also understands the benefit that those distribution sales channels provide in terms of technical support and warranties.