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is the key to the math。〃 The sixty…person UPS team in Timonium is made up largely
of people with engineering and math degrees； including several Ph。D。's。
UPS also employs its own meteorologists and strategic threat analysts to track which
atmospheric or geopolitical thunderstorms it will have to work around on any given
day。 To further grease its supply chains； UPS is the largest private user of wireless
technology in the world； as its drivers alone make over 1 million phone calls a day
in the process ofpicking up and delivering packages through its eighty…eight thousand
package cars； vans； tractors； and motorcycles。 On any given day； according to UPS；
2 percent of the world's GDP can be found in UPS delivery trucks or package cars。
Oh； and did I mention that UPS also has a financing
arm…UPS Capital…that will put up the money for the transformation of your supply chain；
particularly if you are a small business and don't have the capital。
For example； notes Eskew； UPS was doing business with a small biotech company in Canada
that sold blood adhesives； a highly perishable alternative to stitches。 The company
had a growing market among the major hospital chains； but it had a problem keeping
up with demand and could not get financing。 It had distribution centers on the East
and West coasts。 UPS redesigned the company's system based around a refrigerator hub
in Dallas and extended it financing through UPS Capital。 The result； said Eskew； was
less inventory； better cash flow； better customer service…and an embedded customer
for UPS。 A maker of bridal headpieces and veils in Montreal wanted to improve its
flow of business with the U。S。 Eskew recalled； 〃We designed a system for consolidated
＇customs＇ clearances； so their veils and headpieces would not have to come over ＇the
border＇ one by one。 And then we put ＇the merchandise＇ in a warehouse in ＇upstate＇
New York。 We took the orders by Internet； we put the labels on； we delivered the
packages and collected the money； and we put that money through UPS Capital into their
banks electronically so they had the cash back。 That allows them to enter new markets
and minimize their inventory。〃
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 handingthe goodsto 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' infrastruc
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ture 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。
Flattener #9 In…forming
Google； Yahoo！； MSN Web Search
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。 …Testimonial from Google user
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I am completely delighted with the translation service。 My partner arranged for two
laborers to come and help with some demolition。 There was a miscommunication： she
asked for the workers to come at 11 am； and the labor service sent them at 8：30。 They
speak only Spanish； and I speak English and some French。 Our Hispanic neighbors were
out。 With the help of the translation service； I was able to communicate with the
workers； to apologize for the miscommunication； establish the expectation； and ask
them to come back at 11。 Thank you for providing this connection 。 。 。 Thank you Google。
…Testimonial from Google user
I just want to thank Google for teaching me how to find love。 While looking for my
estranged brother； I stumbled across a Mexican Web site for male strippers…and I was
shocked。 My brother was working as a male prostitute！ The first chance I got； I flew
to the city he was working in to liberate him from this degrading profession。 I went
to the club he was working at and found my brother。 But more than that； I met one
of his co…workers 。 。 。 We got married last weekend ＇in Mexico＇； and I am positive
without Google's services； I never would have found my brother； my husband； or the
surprisingly lucrative nature of the male stripping industry in Mexico！！ Thank you；
Google！
…Testimonial from Google user
Google headquarters in Mountain View； California； has a certain Epcot Cen
ter 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 thin