Thomas Friedman - The World is Flat

Eskew explained, “When our grandfathers owned shops, inventory was what was in the back room. Now it is a box two hours away on a package car, or it might be hundreds more crossing the country by rail or jet, and you have thousands more crossing the ocean. And because we all have visibility into that supply chain, we can coordinate all those modes of transportation.”

Indeed, as consumers have become more empowered to pull their own products via the Internet and customize them for themselves, UPS has found itself in the interesting position of being not only the company actually taking the orders but also, as the delivery service, the one handing the goods to the buyer at the front door. As a result, companies said, “Let's try to push as many differentiating things to the end of the supply chain, rather than the beginning.” And because UPS was the last link in the supply chain before these goods were loaded onto planes, trains, and trucks, it took over many of these functions, creating a whole new business called End of Runway Services. The day I visited Louisville, two young UPS women were putting together Nikon cameras, with special memory cards and leather cases, which some store had offered as a weekend special. They were even putting them in special boxes just for that store. By taking over this function, UPS gives companies more options to customize products at the last minute.

UPS has also taken full advantage of the Netscape and work flow flat-teners. Before 1995, all tracking and tracing of UPS packages for customers was done through a call center. You called a UPS 800 number and asked an operator where your package was. During the week before Christmas, UPS operators were fielding six hundred thousand calls on the peak days. Each one of those calls cost UPS $2.10 to handle. Then, through the 1990s, as more and more UPS customers became empowered and comfortable with the Internet, and as its own tracking and tracing system improved with advances in wireless technology, UPS invited its customers to track packages themselves over the Internet, at a cost to UPS of between 5(2 and 100 a query.

“So we dramatically reduced our service costs and increased service,” said UPS vice president Ken Sternad, especially since UPS now pulls in 7 million tracking requests on an average day and a staggering 12 million on peak days. At the same time, its drivers also became more empowered with their DIADs -driver delivery information acquisition devices. These are the brown electronic clipboards that you always see the UPS drivers carrying around. The latest generation of them tells each driver where in his truck to load each package-exactly what position on the shelf. It also tells him where his next stop is, and if he goes to the wrong address, the GPS system built into the DIAD won't allow him to deliver the package. It also allows Mom to go online and find out when the driver will be in her neighborhood dropping off her package.

Insourcing is distinct from supply-chaining because it goes well beyond supply-chain management. Because it is third-party-managed logistics, it requires a much more intimate and extensive kind of collaboration among UPS and its clients and its clients' clients. In many cases today, UPS and its employees are so deep inside their clients' infrastructure that it is almost impossible to determine where one stops and the other starts. The UPS people are not just synchronizing your packages— they are synchronizing your whole company and its interaction with both customers and suppliers.

“This is no longer a vendor-customer relationship,” said Eskew. “We answer your phones, we talk to your customers, we house your inventory, and we tell you what sells and doesn't sell. We have access to your information and you have to trust us. We manage competitors, and the only way for this to work, as our founders told Gimbel's and Macy's, is 'trust us.' I won't violate that. Because we are asking people to let go of part of their business, and that really requires trust.”

UPS is creating enabling platforms for anyone to take his or her business global or to vastly improve the efficiency of his or her global supply chain. It is a totally new business, but UPS is convinced it has an almost limitless upside. Time will tell. Though margins are still thin in this kind of work, in 2003 alone insourcing pulled in $2.4 billion in revenues for UPS. My gut tells me the folks in the funny brown shorts and funny brown trucks are on to something big-something made possible only by the flattening of the world and something that is going to flatten it a lot more.

My friend and I met a guy at a restaurant. My friend was very taken with him, but I was suspiciously curious about this guy. After a few minutes of Googling, I found out that he was arrested for felony assault. Although I was once again disappointed with the quality of the dating pool, I was at least able to warn my friend about this guy's violent past.

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Google headquarters in Mountain View, California, has a certain Epcot Center feel to it-so many fun space age toys to play with, so little time. In one corner is a spinning globe that emits light beams based on the volume of people searching on Google. As you would expect, most of the shafts of light are shooting up from North America, Europe, Korea, Japan, and coastal China. The Middle East and Africa remain pretty dark. In another corner is a screen that shows a sample of what things people are searching for at that moment, all over the world. When I was there in 2001, I asked my hosts what had been the most frequent searches lately. One, of course, was “sex,” a perennial favorite of Googlers.

Another was “God.” Lots of people searching for Him or Her. A third was “jobs”-you can't find enough of those. And the fourth most searched item around the time of my visit? I didn't know whether to laugh or cry: “professional wrestling.” The weirdest one, though, is the Google recipe book, where people just open their refrigerators, see what ingredients are inside, type three of them into Google, and see what recipes come up!

Fortunately, no single word or subject accounts for more than 1 or 2 percent of all Google searches at any given time, so no one should get too worried about the fate of humanity on the basis of Google's top search items on any particular day. Indeed, it is the remarkable diversity of searches going on via Google, in so many different tongues, that makes the Google search engine (and search engines in general) such huge flatteners. Never before in the history of the planet have so many people-on their own-had the ability to find so much information about so many things and about so many other people.