Gateway: A Direct Sales
Manufacturer
Danah Al-Zaben
Norah Al-Rashdi
Rawan Saad
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200900141
200800464
200800184
Outline:
 Introduction.
(Danah)
 Decision Phases of Gateway’s Supply Chain.
(Danah)
 Cycle View of Gateway. (Norah)
 Push/Pull View of Gateway. (Rawan)
 Conclusion.
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Introduction:
 Gateway
is a hardware CO. which was found by Ted
Waitt in sep 1985 in USA, California.
 It
develops, manufactures, supports, and markets a
wide range of personal computers, computer
monitors, servers and computer accessories.
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Decision Phases of Gateway’s Supply Chain:
1)
Supply chain strategy or design:

Gateway had multiple production facilities in
US, it brought many advantages/ Dell CO.
had one facility in US (Texas).
Gateway uses the “retail channel ‘’ to sell the
products directly to retailers in stores.

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Decision Phases of Gateway’s Supply Chain:
2)
Supply chain planning:

Gateway planned to start producing in
California then grow their production.
Planned to keep prices low.
Planned to keep promotions and ads inhouse and get a local help.
Planned to have special features of the
products to offer to customers.



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Decision Phases of Gateway’s Supply Chain:
3)
Supply chain operation:

Had their sold products in retail stores.
Produced certain amount of products
depending on the customers’ needs.
Didn’t have finished goods inventory at the
retail stores… big companies shouldn’t have
FG inventory unless the time line is long.


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Cycle View of Gateway:
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Figure 2: Cycle View (Bouzid, n.d, p.14).
Cycle View of Gateway:

Gateway not carry any finished goods inventory at retail stores:

Gateway has an intelligent decision in not keeping items in
their inventory, because customers could wait when it’s about
computers order, for that they had no inventory on risk.
Retail stores carry any finished goods inventory:
Some companies who have retail stores they should keep
some inventory, but on the other hand an electronic items are
always risky to keep inventory, because computers are easy to
get out dated, and everyday there is a change.
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Push/Pull View of Gateway:
•The difference between push and pull
processes.
• Gateway utilizes the pull processes.
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Push/Pull View of Gateway:

Gateway serve three major segments:
- The direct segment ( internet and call centers).
- The professional segment ( telephone-based and
field sales teams).
- The retail segment (retail channel).

Dell sells directly and able to cut cost (carrying
finished product inventory).
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Conclusion:
Supply chain is significant for Gateway Inc. to
maximize its profitability and satisfy its
customers’ needs by focusing on the use of pull
view which helped the company grow its sales
and diverse its production locations.
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Thank You For Your Listening….
Do You Have Any Question ?!!!!!
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References:




Bouzid,Y. (n.d.). Gateway: A Direct Sales Manufacturer. Gateway: A Direct
Sales Manufacturer. Retrieved September 15, 2012, from
www.aui.ma/personal/~A.Berrado/MGT5309/GatewayInc.pdf
Khan, T. (n.d.). Mohsin Supply Chain.Scribd. Retrieved September 14, 2012,
from http://www.scribd.com/doc/60381256/Mohsin-Supply-Chain
Press. (2004). Gateway, Inc. History: company history,Retrieved September
15, 2012 from http://www.fundinguniverse.com/companyhistories/gateway-inc-history/
Understanding the Supply Chain. (2012). Retrieved from
www.umflint.edu/~weli/.../understand.pdf
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