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The World is Flat Flatteners 7-10. Flattener #7 Supply Chaining Eating Sushi in Arkansas. Flattener #7 Supply Chaining. “Global Optimization” Dell A customer for every computer 2 basic challenges in developing a global supply chain in a flat world 1. global optimization
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Flattener #7Supply Chaining • “Global Optimization” • Dell • A customer for • every computer • 2 basic challenges in developing a global supply chain in a flat world • 1. global optimization • 2. coordinating disruption-prone supply with hard-to-predict demand
Flattener #7Supply Chaining • The “Wal-Mart Symphony” • Wal-Mart • Save money by buying directly from manufacturers, by constantly innovating to cut the cost of running its supply chain, and by keeping its inventories low by learning more about its customers, it could beat its competitors on price every time • RFID • Downfalls • Japan’s attempt to copy “Seiyu”
Discussion Question:Is the type of global supply chain used by Wal-Mart really good for the United States?
Flattener #8InsourcingWhat the Guys in Funny Brown Shorts Are Really Doing
Flattener #8Insourcing • UPS: Your World, Synchronized • Toshiba Laptops – UPS people repair laptops? • Papa John’s, Nike, Jockey, HP, Segrest Farms • Global Supply Chain Manager • “UPS engineers come right inside your company; analyze its manufacturing, packaging, and delivery processes; and then design, redesign, and manage your whole global supply chain.”
Flattener #8Insourcing • Trust • Some companies never touch their own products • Help the small act big and the big act small • Financing • Tracking Systems – Ford Motor Co. • Operations Research Division • Meteorologists • End of Runway Services
Discussion Question:Do you think other companies will follow in UPS’s footsteps?
Flattener #9In-forming • ability to build and deploy your own personal supply chain – a supply of information, knowledge, and entertainment • Carry all the world’s knowledge in your pocket? • 1 billion searches per day, up from 150 million just 3 years ago
Flattener #9In-forming • Text is not the only source of information • Everything we see, hear, touch, read, and write is information, and will eventually be able to be searched • Google’s power • Better search • Strategic advertising • Yahoo Groups • “Google is like God. God is wireless, God is everywhere, and God sees everything. Any questions in the world, you ask Google.”
Discussion Question:Is there a point where there is too much information available?
Flattener #10The SteroidsDigital, Mobile, Personal, and Virtual
Flattener #10The Steroids • Wireless connectivity in Japan • “Taking all the forms of collaboration and making it possible to do each and every one of them in a way that is digital, mobile, virtual and personal.”
Flattener #10The Steroids • Computing: computational, storage, and input/output capabilities • Instant Messaging and File Sharing • Phone Calls over the Internet (VoIP) • Videoconferencing • Computer Graphics • Wireless Technologies and Devices • Cell Phones, DoCoMo, Rolls –Royce, Madonna
Discussion Question:Do you think cell phones will become as prominent in the US as predicted in the book (for example scanning Madonna posters?)