Module 9

The Dell computer company has become a model for providing products that are made per customer request, instead of mass producing one item. Any person can call the Dell phone number and place an order for a computer or laptop and have that order customized to their needs and requests. This system not only allows for a personal customer experience, it means that no product is left on the shelf waiting for sale.

This first step in building a Dell computer is knowing what the customer wants. A customer service representative can be reach by phone, and the customer places their order. This order information is then entered into the Dell order management system, along with the customer’s credit card and shipping information. Once the credit card has been verified and payment is received, the order is then send to Dell’s production system. This information is received in one of Dell’s six factories. The factory then orders the parts for the computer or laptop from their local suppliers. The parts arrive at the factory within ninety minutes. These parts are then placed into a bin where they are shipped to another area in the factory where the computer is screwed together by hand. The almost finished product then travels to another area where software is loading onto the computer. The product is then boxed, placed on a pallet, and sent to the airport. It will arrive in Nashville, TN about a day later. The computer will then be shipped to the customer’s home. This system proves to be fast and effective.

Dell is also very creative in the way they shape the demand of certain products. If Dell notices that their supplier is running low on a specific product, the customer service representative will try to pursue customers into ordering an upgrade at a discounted price. This way, the fabrication and shipping process is preformed without delay.

The internet has been used by many to operate companies more efficiently. Companies can use the internet for conducting global meetings and updating suppliers of products that need to be shipped. Freidman mentions that the Al-Qaeda also uses the internet to conduct its global supply chain, but then explains that they really use it mainly for recruitment. When I think of supply chain, I think of the examples presented earlier in Freidman’s book, like how WalMart provides information to all of the supplier of what needs to be replaced on the shelves, and then having that product shipped to one central distribution center. Recruiting new suicide bombers is only part of the supply chain. The Al-Qaeda also uses the internet to shape their image, instead of only relying on publicity from their acts of terror. This could be considered part of the supply chain, as they will only want to recruit a certain type of person. When looking at all the information that is presented, and when compared to a traditional supply chain, I think that the Al-Qaeda does not have an effective supply chain.

Counties in the Middle East that produce most of the world’s oil tend to keep the wealth within the monarchs and dictators. These select few are able to freely spend the millions they have earned just by drilling oil. Citizens of these countries do not pay taxes, and therefore this is no money going towards the betterment of the country as a whole. These counties tend to have no higher education, court systems, or general rights for the citizens. This is known as the “curse of oil”; since most of the counties wealth comes from oil and oil related sales, the rest of the population has not developed any other creative ways to make money. Once the oil runs out, there will be no more money coming into the country. There is no advanced education to provide the general public with tools to support themselves. The country will fail without the oil.