Cash Machine

How they do it: Computer manufacturer Dell was one of the pioneers in employing a build-to-order strategy in the 1980s. Computers were first customized and paid for by the customers, with invoices for the computer parts from the suppliers having lenghier payment deadlines. This allowed it to achieve a highly negative cash conversion cycle. In its early years the Cash Machine pattern presented an important means for Dell to finance its growth. At its founding in 1984, Michael Dell’s seed capital consisted of a mere US $1,000.

Direct Selling

How they do it: Dell offers its personal computers and accesoires directly on their website, ready to be configured individually and shipped to the customer’s location.

E-commerce

How they do it: Dell offers its personal computers and accesoires directly on their website, ready to be configured individually and shipped to the customer’s location.

From Push-to-pull

How they do it: In offering its personalized computers through their direct selling channels, Dell applied a push-to-pull strategy. Concretely, Dell predefines which part of the computer can be configurated individually and then ”pushes” predetermined options/configurations of their product to the customer. The customer then ”pulls” by choosing one of those options and the customized order is then ”pulled” through the supply chain.

Mass Customization

How they do it: In their personal computer direct sales, Dell predefined which parts of the computer can be individualized / configurated and then pushes those predetermined options/configurations of their product to the customer. The customer can then individualize their product by choosing one of those options. This allows the company to let every customer individualize their computer but limiting the impact on the supply chain by predefining the possible choices.