In
June, Dell made big news by announcing it
was eschewing its almost exclusive “make-to-order”
supply chain model to begin selling and
stocking desktop and laptop computers in
Wal-Mart stores.
As we noted
at the time, this move obviously requires
a substantially different supply chain model,
along with new skills sets in both supply
chain planning an execution (See How
Many Supply Chains Does Dell Need Now?).
We were therefore
interested to read a piece on the investment
web site TheStreet.com in which one of its
writers made random visits to Wal-Mart stores
in the San Francisco area to see how well
Dell products were being merchandised there.
The results
were mixed, with inventory and merchandising
varying substantially from store to store.
A store associate at one Wal-Mart said they
had received only a single Dell laptop,
and having sold it a couple of weeks ago,
were unsure when replenishment units would
arrive.
The article
says that “At all five Wal-Mart stores
visited, Dell was a no-show among the out-of-box
laptops on display in the PC section, where
consumers could inspect machines from the
likes of Acer and Toshiba.
The writer,
Alexei Oreskovic, further added that “In
a couple of stores, Dell had a special glass
kiosk display promoting its laptops and
the back-to-school theme. But instead of
displaying one of Dell's laptops, the kiosk
simply featured an "actual size"
picture of Dell's laptop. The laptops were
all in boxes locked in a cage underneath
the display.”
He concluded:
“So much for the hands-on shopping
experience.” (See Dell
Stumbles at Wal-Mart for the full
Street.com article).
Other stores,
meanwhile, had what seemed like an ample
supply of Dell desktop PCs on the shelves.
Obviously,
getting up to speed on the vagaries of the
retail supply chain and in-store execution
will take Dell some time, and probably cause
quite a bit of frustration for a company
used to operating its own supply chain in
a very precise manner.
The Street.com
anecdote also adds another check on the
side of the ledger touting the benefits
– one might almost say necessity –
of improving in-store execution by making
merchandising data visible to suppliers
like Dell via RFID. As Procter & Gamble’s
Dick Cantwell observed in a lengthy interview
with Supply Chain Digest earlier this year,
“I’ve seen every plan in the
book to get better retail execution, and
I’ve not seen anything that had ever
lived up to its expectations. What RFID
does, is it gives you, for the first time,
real actionable visibility. It gives you
the systems to really know where your products
and displays are.” (See Procter
and Gamble "Unplugged" on RFID.)
In other
words, Dell marketers would have known about
the merchandising and inventory levels in
the Wal-Mart stores long before Oreskovic. |