Industrialised, Integrated, Intelligent sustainable Construction - I3con

SUSTAINABLE CONSTRUCTION HANDBOOK 2
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customer relationships provide a constant flow of information about customers' plans and
requirements and enable Dell to continually refine its product offerings. More importantly, Dell
is the low price leader in the PC market, Dell can consistently under price rivals by reducing its
value chain and also support programs tailored to customer needs such as customization, service
and support, and latest technology. Further, Dell's flexible, build-to-order manufacturing
process enables them to achieve faster inventory turnover and reduced inventory levels.
Dell Computer Corp. was able to use the
Internet to trim costs and boost sales, both of
which were becoming increasingly difficult
to do in the nearly saturated personal
computer (PC) market of the late 1990s. The
firm started to sell PCs via the Internet in
1996. It became possible for customers who
previously had placed custom orders via the
telephone to place them on Dell's Web site.
Customers could select configuration
options, get price quotes, and order both
single and multiple systems, (see Figure 8).
The site also allowed purchasers to view
their order status, and it offered support
services to Dell owners, (see Figure 9).
Within a year, Dell was selling roughly $1
million
worth of computers a day via the Internet.
Even more importantly, nearly 80 percent of
the online clients were new to Dell. With the
more automated Web-based PC purchasing
process, Dell found itself able to handle the
growing sales volume without having to
drastically increase staff. Cost savings also
were achieved as the firm's phone bill began
shrinking. Dell's business model, which
allowed for easy tracking of customer
purchases, also allowed the firm to keep
inventory at a minimum. In 2001, Dell usurped Compaq Computer Corp. as the world's largest
PC maker.
Utilising technology helped Dell to develop a sustainable solution that increased its competitive
advantage such as:
• No inventory of completed computers and with just-in-time supply lines, it has little
inventory of components (e.g. hard drives).
• Quickly capitalise on components from lower cost suppliers.
• Quickly capitalise on new PC developments such as DVD drives.
Figure 8. Placing & Configuring orders via Dell
Website (Managing Change, 2009)
Figure 9. Following up Orders Status via Dell
Website (Planet Free Software, 2009)
• Negative cash conversion cycle such as keeping inventory for 5 days, manage receivables
to 30 days and push payables to 59 days (Free Encyclopaedia of Ecommerce, 2009;
Mega, 2009).
(4) Nike
Founder and CEO of Nike said “Business is war without bullets”. Nike Inc.
was incorporated in 1968 under the laws of the state of Oregon, USA. The
general business activities can be described as design, development, and
global marketing of high quality footwear, equipment and accessory
products. Nike is the largest seller of athletic footwear and athletic apparel
in the world. The Nike swoosh is one of the most recognizable business logos on earth. It is