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Study Case : How Dell Computer "BTOs" its Value Chain

Dell and BTO.
by

Albert Winadi

on 27 July 2010

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Transcript of Study Case : How Dell Computer "BTOs" its Value Chain

How Dell Computer
"BTOs"
its Value Chain How would the BTO strategy work
in another industry? What are the implications of BTO for
the value chain of suppliers of Dell components? Highly customizable,

Low-volume products, or

Expensive holding inventory Provide customer with the exact requirements
Reduce cost and risk to holding inventory Susceptible to market demands
Can not fully utilize manufacturing capacity Proactive demand management
Find the 'perfect' Decoupling point
(Identifying which suppliers should be BTO,
and which should be BTS) a combined approach,
where some items are built to stock,
and others are built to order "A style of order fulfillment where
production is commenced
once a confirmed order is received" Built to Order Benefits Most suitable for: iPod with engravings Mercedes-Benz SLR McLaren Airbus A380 Suppliers Problems Solution Hybrid BTO Provide customer with the exact requirements
Reduce cost and risk to holding inventory Benefits Study Case Presentation
Albert Winadi, Fredy Jingga, Kartika Ruru
Full transcript