The World is FlatFlatteners #7 & #8Thomas Friedman

Group 4: Tom, Josh, Brian, Jing, Ingrid

Flattener #7 – Supply Chaining

Wal-Mart Prophet?

Flattener Key Points

• Resourcefulness versus opportunityBusinesses in Difficult situations or insecure in the marketplace will innovate and educate the industry

• Small efficiencies via technologyEnhanced communication, leads to identification of more instances to cut costs

• Smart products and meta data MicrochipSmart products

• RFID tags Streamline their supply chain

What are the implications for the US economy and position in the world?

• Adoption is a necessityResistance is futile. A place in the business world is solidified by adoption and innovation.

• Catch-22, Hegemony, Tiny gains  Demand models, anticipation techniques and trend analysis makes meta data key in highly competitive markets

Points of contention

• Tools empower manufacturersTools may empower the manufacturers (as they adopt

them) to leverage back against Wal-Mart. • Backlash blindspot

Just like Wal-Mart couldn't foresee the backlash from globalization, impersonalization and efficiency cost cuts, Friedman didn't foresee that we would backlash his "flat" metaphor quite so viscously

Wal-Mart Profit.

Flattener #8: UPS: In-Sourcing

Example #1: UPS fixes laptops for companies to speed up service. 3 day turn-around, instead

of week (s) for product repairs

Point 1 - UPS is not only shipping parcels, but also providing smart business solutions

Example #2: Take orders from Nike.com, fill the order from a warehouse staffed and

operated by UPS and ship with UPS.

Point 2

• UPS makes big companies act small + small companies act big

• If you are a seller on Ebay, the buyer pays through PayPal, you print UPS label through PayPal and tracking number is emailed to the customer so they can track online and know when it’s being delivered

Point 3• UPS is creating enabling platforms

for anyone to take their business global.

• Provides funds for small businesses for computers, scales, printers to help grow your business

• Provides banking/COD solutions for businesses

Point 4• UPS makes delivery super efficient &

super fast, and does this in high volumes.

• Figured out a way to track packages more efficiently. Allow customers to track their own packages online.

• Coding system to track packages - saves money and speeds up delivery delivery.

• Lowered price from $2+ to 5 cents

Point 5

• UPS is now basically an extension of departments within other companies

• UPS tracks weather and geopolitical disturbances to make sure they’re prepared for that days business.

• 2% of global GDP is being transferred through UPS at any given moment.

• Largest user of wireless technology in the world. Cell Phones/DIADs (Driver Delivery Information Acquisition Devices)

• UPS Companies   UPS Air Cargo  UPS Capital Corporation  UPS Consulting  UPS Mail Innovations  Mail Boxes Etc., Inc.  Motor Cargo, A UPS Company  Overnite, A UPS Company  UPS Professional Services  UPS Supply Chain Solutions

And Flattening Capabilities…..