jhg, typically, sell through means that the consumer ends up with the goods, not a middleman. Since Dell buys only what the consumer has ordered, there is complete "sell-through". Companies that rely on channels and resellers do not have complete sell through since some inventory, raw materials and finished goods, remains unsold.
Leveraging is really one of those annoying words that is now almost devoid of meaning. Originally, it meant getting a large effect for a small effort -- an analogy to the physics model of a lever. This analogy still works with financial leverage, wherein a portion of the capital structure is debt. This allows an increase in ROI and eps compared to an all equity company.
Unfortunately, in the argot of business you must search the context for the meaning.
In the context that Dell used it, I believe that he meant that the "virtual relationship" (near instantaneous electronic communication) allow for smaller inventories and hence more efficient use of assets than older models. When he talks about "leveraging investments others have made" he means don't reinvent the wheel -- use the R&D of your suppliers rather than duplicate what they have done. Again, this is more efficient use of capital.
I agree, the word "leverage" is horrible -- it means nothing and is context driven. But it does sound erudite! It reminds me of what is meant by the word "neat".
Dell could have said "the direct model has allowed us to improve communications with both suppliers and customers to such an extent that I believe its fair to think of our companies as being virtually integrated....". I wish he had.
TTFN,
CTC
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