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Dell, however, created a cost-efficient way to sell their computers by “cutting out the middle man” and selling their computers directly to their customers. This direct sell method saves Dell three to five percent in inventory costs which would have otherwise been paid to retailers.
In the past, computer manufacturers assembled computers based upon what they had in their inventory. This necessitated maintaining a stock room with three to four months of computer inventory in the distribution channel. On the contrary, Dell produces a computer only when the customer requests and pays for the item...
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