Supply Chain in a Box

While I was reading up on the latest news I clicked on a banner ad for probably the first time since I started using the internet in 1993. It grabbed my attention because it offers consumers the ability to build their own laptop. And I don't mean, simply going to a website and choosing the RAM and hard drive and having it shipped all assembled. I mean, you get a bunch of parts and you need to physically assemble it.

The company is called
ZipZoomFly.com and it basically offers you a supply chain in a box. By going to the website you play the role of the procurement buyer. While no negotiation skills are needed you choose laptop chassis and then you choose your components. From there you put on your logistics hat and have the parts shipped. I'd argue that you are also wearing a customer fulfillment hat as well, since you are also inputing the payment terms. Finally and untypical of most supply chains you, as both the manufacturer and the client, receive your parts and play assembly line building your new laptop.

With the lowest price option starting at $799 I really don't see the amazing savings. Before looking at the price I would have guessed $399 since they are eliminating the costly expense of human assembly, but with this price point I'd say they a pocketing a nice profit.

Outsourced - The Movie

Another example of Hollywood using the supply chain for cinematic inspiration. While it contains a love story as well, "Outsourced", is about a Seattle-based US company that sends its customer fulfillment center to India leaving the manager of the center to go to India to train his replacements. While there are some funny bits and pieces to the story, it is a story that we hear about often. And its not a bad thing. Part of globalization is focused on this and it creates opportunity for all of us. For example, the main character Todd Anderson, could become a high paid consultant helping other companies shift their call centers to India.

And what better experience then doing it himself. Also, by employing, once unemployed people, in this case in India, the world economy grows, adding to the growing middle class.

BMW Excels at Customer Fulfillment

It's not often that I get to talk about customer fulfillment on my blog. It's obviously a critical part of the supply chain because any screw up in the fulfillment process could leave a lasting impression on the customer. Or as in the case with me, it could turn the customer into a loyal client. Which brings me to BMW. As many of you know I picked up my new BMW last Saturday in Munich at BMW Welt, essentially the customer fulfillment operations of the automaker.

After receiving a warm welcome at the door my girlfriend and I were treated to breakfast.

This was followed by a meeting with my service rep. Before actually taking ownership of my car, BMW lets me take it for a virtual test drive where I get to test how my actual car, with its real world configuration, will drive in snow and rain conditions. In the simulation I can test the brakes and cornering. Cool stuff.




From there I am taken to a landing area that has my car spinning on a platform. And from that point on I am given a tour of the facility and a tour of all of the features of my car. Unfortunately, the manufacturing side of the facility is closed on the weekends, so no shots of manufacturing. But on the logistics front I have a scoop. Prior to prepping my car its sits in a loading dock within BMW Welt that holds roughly 250 cars. The dock is 100% automated, in fact humans can't even go inside because BMW has removed a considerable portion of the air from the room. The reason is simple, to prevent fires. Similar to a large parking garage an automated arm moves the platform, which the cars sit on from station to station where the car gets final tests and cleaned up.

To summarize, the BMW Welt experience, is exactly what customer fulfillment should do, which is fulfill my every wish and desire. And they sure did.

AMR Research Supply Chain Top 25

Last week AMR Research published its heavily touted and highly competitive Top 25 Supply Chain listing. Being personally involved in IBM's effort to be #1 on the list I know the time and effort that goes into both the development of this report and the final count. Based on the peer scores of all of the players the report certainly has gained in popularity since 2004.

In the past year, AMR has taken the report a step further to look at the overall financial strength of the top 25 making a strong case that if your supply chain excels, so do your financially. It's certainly the case for IBM, the #5 supply chain this year and Apple the #1. Speaking of Apple, as both a huge customer, fanboy and shareholder, I was a little surprised to see them as #1. I mean, the iPhone has been sold out in stores for months and while that make create strong demand and create buzz, it certainly doesn't bode well for the planning inventory and demand system.

Frankly, next year, I'd like to see the bottom 25 supply chains in the world. It would be humorous to see what the worse supply chain in the world looks like. Hey, Kevin O'Marah, what do you think about a Bottom 25 Supply Chain for next year?