Thursday, June 26, 2008
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.