1. MI021/CS021 Computers in Management Sept. 25, 2006 Dell www.gallaugher.com

2. Topics Covered Dell –Direct vs. Indirect channels –Float & inventory turns –Channel Pressure

4. Source: Benjamin & Wigand (SMR) Disintermediation

5. Channel Conflict customersuppliercustomer Traditional Retailers (small) Distributors customer Internet Retailers customer Traditional Retailers (big box)

6. “We recognize that a vendor has the right to sell through whatever distribution channels it desires. However, we too have the right to be selective in regard to the vendors we select and we trust that you can understand that a company may be hesitant to do business with its competitors.” HomeDepot memo to suppliers