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Direct model, Build on Demand model, tight supply chain, no buffer inventory management and high quality with superior customer service.
Innovative Channel management
Dell was the pioneer in instituting the Direct model. Unlike customers who supplied machines based on orders from distributors, resellers and retailers, Dell took orders from the customer directly. These created operational and cost efficiencies by eliminating the middlemen. These operational efficiencies are clearly visible via the high gross margin of 19% achieved via the direct channel. Further more Dell received almost 86% of its revenues via its Direct model compared to 4% or less for the prominent competitors...
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