Supply Chain Reaction

Struggling PC OEM Dell will soon be selling its XPSTM  and Inspiron  notebook and desktop computers on shelves at more than 900 Best Buy stores, adding to Dell’s growing list of retail carriers.

The move takes the Round Rock, Texas-based company another step away from its direct supply chain model, although Dell would like you to think differently.

“Offering XPS and Inspiron notebooks and desktops to Best Buy customers illustrates how Dell is applying advantages of its direct business model in retail. Buying systems direct from Dell or in retail stores mean that customers can purchase what they need when and where they want,” the company’s statement reads. No, sorry, Dell, this means you’re continuing to transition to a retail-based model.

With the Best Buy agreement, Dell PCs will be available in almost 10,000 stores around the globe, including Carrefour in Europe, Staples in the U.S., Courts in Singapore, Gome in China, Bic Camera Inc. in Japan, Carphone Warehouse in the U.K. and Wal-Mart in the U.S., Canada, Brazil and Mexico.

I’m not knocking Dell or questioning its thinking here (for that, see my previous posts "Bad supply chain management and bad luck at Dell" and "Acer’s next target: Dell?"). In fact, I’d say moves like this from Dell are much overdue. The company for years held on to the idea its direct model was the only way to go. While that and its PC-build-to-the-specific-customer approach proved beneficial for many years, consumers and businesses have changed their approaches and are now more interested in style and computers that match their personality, proving the popularity of Apple Macintoshes in recent quarters and allowing HP to snatch away some of Dell’s former market share. 

The only negative of this announcement is that the Dells were not on Best Buy shelves before Black Friday. With the PCs available at Staples and Wal-Marts for holiday shoppers, it’s a loss for Best Buy and such timing makes one wonder if the agreement’s negotiations were difficult.

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