Dell’s Channel Transformation: Leveraging Operations Research to Unleash Potential Across the Value Chain
Dell pioneered the direct sales model by offering its customers technology solutions through full-system configurability. In 2007, Dell launched several strategic initiatives to drive channel transformation by offering fixed configurations through online channels, retailers, distributors, and other...
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| Veröffentlicht in: | Interfaces (Providence) 2014-01, Vol.44 (1), p.55-69 |
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| creator | Martin, Karl Chitalia, Parag Pugalenthi, Murugan Rau, K. Raghava Maity, Sudeep Kumar, Rahul Saksena, Rohit Hebbar, Randhir Krishnan, Mahesh Hegde, Ganesh Kesanapally, Chandrasekhar Bimbraw, Tejinder Kaur Subramanian, Sumathi |
| description | Dell pioneered the direct sales model by offering its customers technology solutions through full-system configurability. In 2007, Dell launched several strategic initiatives to drive channel transformation by offering fixed configurations through online channels, retailers, distributors, and other channel partners. Dell's center of excellence (CoE) in analytics developed solutions that apply operations research (OR) to address key challenges across the value chain and enable profitable growth in the new channels. These solutions include (1) a configuration optimizer to reduce product complexity by identifying fixed hardware configurations (FHCs), which Dell builds and stocks, (2) an online conversion rate accelerator to improve the online customer purchase experience, leading to increased revenues and customer satisfaction, and (3) a retail margin maximizer to improve forecasts, mitigate inventory risk, and recommend promotions to increase margins. Since 2007, OR has helped Dell solve complex business problems and has facilitated its growth in the FHC business to $15 billion. Since 2010, these OR solutions have delivered a margin impact of more than $140 million by reducing markdown expenditures, improving online conversion rates, increasing ocean shipments, and enhancing customer satisfaction. |
| doi_str_mv | 10.1287/inte.2013.0729 |
| format | Article |
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Raghava ; Maity, Sudeep ; Kumar, Rahul ; Saksena, Rohit ; Hebbar, Randhir ; Krishnan, Mahesh ; Hegde, Ganesh ; Kesanapally, Chandrasekhar ; Bimbraw, Tejinder Kaur ; Subramanian, Sumathi</creator><creatorcontrib>Martin, Karl ; Chitalia, Parag ; Pugalenthi, Murugan ; Rau, K. Raghava ; Maity, Sudeep ; Kumar, Rahul ; Saksena, Rohit ; Hebbar, Randhir ; Krishnan, Mahesh ; Hegde, Ganesh ; Kesanapally, Chandrasekhar ; Bimbraw, Tejinder Kaur ; Subramanian, Sumathi</creatorcontrib><description>Dell pioneered the direct sales model by offering its customers technology solutions through full-system configurability. In 2007, Dell launched several strategic initiatives to drive channel transformation by offering fixed configurations through online channels, retailers, distributors, and other channel partners. 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Since 2010, these OR solutions have delivered a margin impact of more than $140 million by reducing markdown expenditures, improving online conversion rates, increasing ocean shipments, and enhancing customer satisfaction.</description><subject>A/B testing</subject><subject>ARIMAX</subject><subject>channel</subject><subject>Computer industry</subject><subject>Computer services industry</subject><subject>Cost control</subject><subject>CPFR</subject><subject>Customer satisfaction</subject><subject>Customers</subject><subject>demand clustering</subject><subject>Distribution</subject><subject>Distribution channels</subject><subject>factor analysis</subject><subject>forecasting</subject><subject>Forecasting models</subject><subject>Forecasts and trends</subject><subject>Internet</subject><subject>Inventories</subject><subject>Inventory</subject><subject>inventory modeling</subject><subject>Management science</subject><subject>Manufacturing</subject><subject>multivariate testing</subject><subject>Operations research</subject><subject>Profitability</subject><subject>Retail stores</subject><subject>Sales forecasting</subject><subject>Stock conversion ratios</subject><subject>Supply chain management</subject><subject>text mining</subject><subject>U.S.A</subject><subject>Value chain</subject><subject>Websites</subject><issn>0092-2102</issn><issn>2644-0865</issn><issn>1526-551X</issn><issn>2644-0873</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2014</creationdate><recordtype>article</recordtype><sourceid>N95</sourceid><recordid>eNqFks2KFDEUhQtRsB3duhMCblxYbX46qSp3TfsLDSMyI-6KVOqmOm110pObEtz5Gr6eT2LKEUelQQJJuHzncG9yiuIho0vG6-qZ8wmWnDKxpBVvbhULJrkqpWQfbxcLShteckb53eIe4p5SylTNFsWnFzCO379-Q7LZae9hJBdRe7QhHnRywT8nW_gMUQ_OD-T8mG9zFcl7QNDR7EgK5NKPoHFH3oUEPjk9krWJAZGkHZAPepxgNnf-fnHH6hHhwa_zrLh89fJi86bcnr9-u1lvSyOVSiXXitVWVGA7ySrdaSM6a3rV84obBV1PbSYUtxqkqFasW5naANVSCtsLJsRZ8eTa9xjD1QSY2oNDk-fUHsKELZNMNjWtxIw-_gfdhyn63F2mqFBqxRi9oQY9Quu8DSlqM5u2a6E4bWQl6kyVJ6gBfH60MXiwLpf_4pcn-Lx6ODhzUvD0D0E3ofOAeUM37BIOekI86f_zMyLY9hjdQccvLaPtnJh2Tkw7J6adE5MFj64Fe0wh_qZXQjWNqOTNgHOv8YD_8_sBY_bMhA</recordid><startdate>20140101</startdate><enddate>20140101</enddate><creator>Martin, Karl</creator><creator>Chitalia, Parag</creator><creator>Pugalenthi, Murugan</creator><creator>Rau, K. 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Raghava</au><au>Maity, Sudeep</au><au>Kumar, Rahul</au><au>Saksena, Rohit</au><au>Hebbar, Randhir</au><au>Krishnan, Mahesh</au><au>Hegde, Ganesh</au><au>Kesanapally, Chandrasekhar</au><au>Bimbraw, Tejinder Kaur</au><au>Subramanian, Sumathi</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Dell’s Channel Transformation: Leveraging Operations Research to Unleash Potential Across the Value Chain</atitle><jtitle>Interfaces (Providence)</jtitle><date>2014-01-01</date><risdate>2014</risdate><volume>44</volume><issue>1</issue><spage>55</spage><epage>69</epage><pages>55-69</pages><issn>0092-2102</issn><issn>2644-0865</issn><eissn>1526-551X</eissn><eissn>2644-0873</eissn><coden>INFAC4</coden><abstract>Dell pioneered the direct sales model by offering its customers technology solutions through full-system configurability. In 2007, Dell launched several strategic initiatives to drive channel transformation by offering fixed configurations through online channels, retailers, distributors, and other channel partners. Dell's center of excellence (CoE) in analytics developed solutions that apply operations research (OR) to address key challenges across the value chain and enable profitable growth in the new channels. These solutions include (1) a configuration optimizer to reduce product complexity by identifying fixed hardware configurations (FHCs), which Dell builds and stocks, (2) an online conversion rate accelerator to improve the online customer purchase experience, leading to increased revenues and customer satisfaction, and (3) a retail margin maximizer to improve forecasts, mitigate inventory risk, and recommend promotions to increase margins. Since 2007, OR has helped Dell solve complex business problems and has facilitated its growth in the FHC business to $15 billion. Since 2010, these OR solutions have delivered a margin impact of more than $140 million by reducing markdown expenditures, improving online conversion rates, increasing ocean shipments, and enhancing customer satisfaction.</abstract><cop>Linthicum</cop><pub>INFORMS</pub><doi>10.1287/inte.2013.0729</doi><tpages>15</tpages></addata></record> |
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| identifier | ISSN: 0092-2102 |
| ispartof | Interfaces (Providence), 2014-01, Vol.44 (1), p.55-69 |
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| source | Informs; Business Source Complete; JSTOR |
| subjects | A/B testing ARIMAX channel Computer industry Computer services industry Cost control CPFR Customer satisfaction Customers demand clustering Distribution Distribution channels factor analysis forecasting Forecasting models Forecasts and trends Internet Inventories Inventory inventory modeling Management science Manufacturing multivariate testing Operations research Profitability Retail stores Sales forecasting Stock conversion ratios Supply chain management text mining U.S.A Value chain Websites |
| title | Dell’s Channel Transformation: Leveraging Operations Research to Unleash Potential Across the Value Chain |
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