Dell’s story began with a belief and a passion: that everybody should have easy access to the best technology anywhere in the world. That was in 1984 in Michael Dell’s University of Texas dorm room. Today, Dell Technologies is instrumental in changing the digital landscape the world over. Dell is among the world’s leading technology companies helping to transform people’s lives with extraordinary capabilities.

GENCO (now part of FedEx Supply Chain Services) was considered a pioneer and market leader in reverse logistics, providing triage, test and repair, remarketing and product liquidation solutions. GENCO offered a complete range of product lifecycle logistics^® services to customers in the technology, consumer, industrial, retail, and healthcare markets.

In 2007 Dell participated in UT’s research on Vested outsourcing. In 2010, Dell sent two senior managers to UT’s inaugural Vested Outsourcing Executive Education class. Dell was intrigued and decided to approach GENCO about the possibility to shift to a Vested sourcing business model. The companies met at a neutral offsite location in June 2011 in Fort Worth, Texas, to have candid discussions about each party’s commitment to convert its contract to a Vested approach.

Dell and GENCO ultimately agreed to move forward with the goal to create a new Vested agreement with a commitment to include a new attitude and approach toward risk and reward sharing. In 2011 they moved forward to convert their existing strategic supplier to a Vested business model – using UT’s Vested courseware combined with support from a Vested Center of Excellence.

A small joint Dell-GENCO team “Core Team” set out to create the Vested agreement, transforming the relationship from a transaction-based contract to a win-win Vested business model. The parties crafted their Vested agreement in four months and the results were spectacular.  Stephen McPherson, Dell Global Operations Leader, who works side by side with GENCO in its Nashville operations center explains. “The results have been beyond my wildest dreams. It has simply been amazing to see how we could literally turn around the culture and see such drastic results in such a short time frame.”

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