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The Dell direct model worked to establish direct customer relationships and was about low-cost and virtual integration.
The Dell direct model involved an extremely efficient distribution system which was characterized by customized manufacturing. The build-to-order manufacturing system would take orders by phone or from a Dell inside sales representative who would be working with Dell's larger accounts. This allowed Dell to achieve higher average revenue per unit, regardless of their industry-low pricing structure. In most cases, Dell was able to complete an order from receipt to shipment within 36 hours, and in some cases in as little as eight hours...
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