JK BUSINESS SCHOOL
JK Chawk, 1200 mtrs on Damdama Lake Road, Off Sohna
Expressway, Gurugram, Haryana 122102
Individual Assignment
Purchase Order for Dell (B2B Marketing)
Submitted to: Submitted by:
Prof. Hitesh Manocha Shubham Tyagi
JKBS/AICTE/2020/093
About Dell
Dell is an American company that develops, sells, repairs, and supports computers and related products and
services, and is the parent company of Dell Technologies. The company was founded in 1984 by Michael Dell,
one of the largest technology companies in the world, employing more than 165,000 people in the United States
(US) and worldwide.
Dell sells personal computers (PCs), servers, data storage tools, network switches, software, hardware, HDTVs,
cameras, printers, and electronics manufactured by other manufacturers. The company is best known for its
innovations in supply chain management and e-commerce, especially its direct sales model and its "build-to-
order" or "pre-order" method in production - delivering individual PCs tailored to customer specifications.
Dell was a pure computer hardware dealer for most of his existence, but with the 2009 acquisition of Perot
Systems, Dell entered the IT services market.
The company has since made some purchases on storage and communication systems, with the aim of expanding
their portfolio from providing computers only to delivering complete solutions to business customers.
Why Dell
Dell was ranked No. 51 on the Fortune 500 list until 2014. His level is 34 in the Fortune 500 right now.
Dell is the third largest seller of personal computer in the world in unit sales since January 2021, following
Lenovo and HP Inc.
Dell is a major exporter of PC monitors worldwide. Dell is the sixth largest company in Texas with total revenue,
according to Fortune magazine. It is the second largest company in Texas (after AT&T) and is the largest
company in the Greater Austin area. After being privately disclosed in 2013, a new confidential version of its
financial information prevents the company from being listed by Fortune.
It was a publicly traded company (Nasdaq: DELL), along with part of the NASDAQ-100 and S&P 500, until it
was privately held in approved purchases closed on October 30, 2013.
Purchase order
Purchase order of a commercial source document issued by the purchasing department of a business when placing
an order with its vendors or suppliers.
This document sets out the details of the items to be purchased, such as the types of goods, the price, and the
price. In simple terms, it is a contract written by the buyer when he buys goods from the seller.
Order steps
1. The buyer creates a purchase request
Before sending a purchase order to a supplier, the first step is to make a purchase request. This is a document
issued within the company to the purchasing department to keep track of ordered goods.
The purchase request also helps the company keep an account of its expenses. The PO was created only after the
purchase request was approved by the authorized manager.
2. Buyer creates a purchase order
When the goods that need to be purchased are agreed upon, a purchase order is created. PO calculates order date,
FOB shipping details, discount terms, buyer and seller names, product description, item number, amount, amount,
and PO number.
The PO number is a unique number associated with a particular order. It serves two purposes. Another is to make
sure that the goods ordered are in line with those received. Second, the PO number is matched by an invoice to
ensure that the buyer is charged the fair amount of goods.
3. The seller accepts (or rejects) the purchase order
At the bottom of the purchase order there is a dotted line for the authorized merchant manager to sign the order.
The PO includes all the details about the job and what the customer expects to receive. If the seller receives a PO,
you have the right to accept or reject the document. However, once the PO is accepted, it becomes a legally
binding contract for both parties involved.
4. Consumer order purchase records
Once the order is placed, the purchase order remains "open." The open purchase order is the PO in which the
order is placed but the goods have not yet been received, or it may mean that only part of the order has been
accepted. Either way, it means that the delivery of goods is incomplete.
BUY PURCHASE TERMS AND CONDITIONS
(INTERNAL PURCHASING AND INTERNAL SOFTWARE USE)
GUIDELINES FOR USE
When to Use Hardware:
• The Provider may easily participate under the Purchase Order with the Terms and Conditions produced by the
Ariba attached if: o The MRA or the Short Form Agreement is NOT REQUIRED under the Indirect Contract
Purchase Requirements Policy; o in the implementation of a single type of solution, Dell purchases Hardware,
Software, SaaS or Hosting Services - NOT Services (Purchase Software, SaaS and Hosting Services is subject to
the Software Contract Requirement Policy here); AND o Dell's annual revenue with supplier is less than $
500,000.
When to Use Software, SaaS or Hosting Services:
• The supplier may participate under the Dell Purchase Terms and Conditions Order generated by Ariba attached,
if:
1. An MRA or Short Form Agreement is NOT REQUIRED under the Dell Software Software Contract
Requirements Policy;
2. For the implementation of a single type of Solution, Dell purchases a Software License, SaaS or Hosting
Services - NOT Services;
3. Dell and Provider access to Software, SaaS and Hosting System to Purchase Order AND
4. Dell's annual revenue with supplier is less than $ 500,000 USD.
• New Edition.
• Testing
• Non-Compliant Product
• Prices
• Fulfillment and delivery
1. Packing
2. Shipping
• Time and completion
1. The elimination of luxury
2. Elimination of violations
• Restoration and Changes
1. Return
2. Changes in order
• Consequences of epidemics and accidents
• License and pass warrants.
Collaborative style is considered three dimensional. Specific dimensions are described below:
• Work-Based Style. This style of collaboration is very goal-oriented and purposeful. One has a great
interest in the efficiency of the existing work that can be done to reduce the cost and time effort. Any work
during the interaction process that may be job-oriented or inefficient is less tolerated by the person who
chooses a work-focused style. The buyer or seller who chooses this style of interaction is usually the one
who is mechanical in his or her way of communicating with other people.
• Interactive Style. The buyer or seller who prefers this style of collaboration believes in personalization
and sharing as an integral part of the collaboration process. In fact, the choice of this style of collaboration
is often indicated by the loss or neglect of the work being done. A buyer or seller who is motivated by a
collaborative style is often forced to first establish a personal relationship with another person and then
only get involved in certain interactive content.
• Fun Style. This style reflects a person’s preoccupation with himself in the interaction. He is deeply
concerned about his own welfare and is often insensitive to the feelings of others. He is often unable to
take another person's opinion and look at all aspects of the relationship from his own selfish point of view.
Concepts of self-preservation, self-reliance and imitation tend to dominate this style of collaboration.
It is also not uncommon to find situations where the buyer and the seller do not agree on a working style.
Factor sellers need to be careful when communicating with buyers
• The seller must understand the foreign power and how he can protect himself against worthless
agreements.
• The seller must also comply with the relevant conditions unless 1% penalty and force major issues that
affect timely delivery of the order are not under the seller's control.
• Issuance of transfer of ownership documents in accordance with the laws and regulations of the relevant
country.
• Merchant credit limit.
Impacts/ Implications
• Order delays affect company finances.
• Loss of financial and related marketing activities involving a certain amount.
• This may affect marketing promises made to the customer
Key Lessons and Conclusions
• The importance of terms of purchase order in order to successfully execute all business orders / contracts
• Which companies place purchase orders in the automotive industry
• What are the key features of a purchase order and what do they mean for performance?
• What is the purchase order format?
• It is important to understand the laws and territories of the countries in which we are committed.
• The parties must keep the purchase order for the benefit of both parties.
• A group of suppliers should establish a limited liability so that they can be charged with a fixed amount
rather than full.