Monday, September 22, 2008
Wal-Mart's Global Supply Chain
Friedman, T. L. (2007). The World is Flat. In T. L. Friedman. New York: Picador.
Friedman talked about how Wal-Mart has made the world flatter. They have a high speed supply chain that can transmit products and information to another corner of the world in a short period of time. Wal-Mart has new technology that has contributed to it's new ways of doing business. It has introduced the RFID-radio frequency identification microchip. It allows Wal-Mart to track the product and get all the necessary information about the product stored in the chip.
Basically supply chaining would not happen if the world was not flat. It actually helps the world to be even more flattened. The new technology like RDIF microchips allows companies like Wal-Mart to become more efficient in productivity making the world even flatter. It allows for the suppliers and the retailers to do business on common standards eliminating any possible confusion.
Friedman talked about how Wal-Mart has made the world flatter. They have a high speed supply chain that can transmit products and information to another corner of the world in a short period of time. Wal-Mart has new technology that has contributed to it's new ways of doing business. It has introduced the RFID-radio frequency identification microchip. It allows Wal-Mart to track the product and get all the necessary information about the product stored in the chip.
"Supply-chaining is both enabled by the flattening of the world and a highly important flattener itself, because the more these supply chains grow and proliferate, the more they force the adoption of commons standards between companies, the more they eliminate points of friction at borders, the more the efficiencies of one company get adopted by the others, and the more they encourage global collaboration."
Basically supply chaining would not happen if the world was not flat. It actually helps the world to be even more flattened. The new technology like RDIF microchips allows companies like Wal-Mart to become more efficient in productivity making the world even flatter. It allows for the suppliers and the retailers to do business on common standards eliminating any possible confusion.
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This quote is a very important one that explains it all. I agree that the supply chain wouldnt be accomplished if the world was not 'flat', it actually makes the world even more flat.
How has the digital revolution (a flattener) made the global supply chain possible? How has WalMart been able to use this flattening world to transform the nature of retail and global production itself?
The passage you have quoted speaks about the adoption of standards and the elimination of friction at the borders. WalMart is setting those standards for global collaboration.
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The passage you have quoted speaks about the adoption of standards and the elimination of friction at the borders. WalMart is setting those standards for global collaboration.
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