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twelve months； but new features are constantly added during the year…through the
supply chain…as the hardware and software components advance。
It happened that when my notebook order hit the Dell factory in Penang； one part was
not available…the wireless card…due to a quality control issue； so the assembly of
the notebook was delayed for a few days。 Then the truck full of good wireless cards
arrived。 On April 13； at 10：15 a。m。； a Dell Malaysia worker pulled the order slip
that automatically popped up once all my parts had arrived from the SLCs to the Penang
factory。 Another Dell Malaysia employee then took out a 〃traveler〃…a special carrying
tote designed to hold and protect parts…and started plucking all the parts that went
into my notebook。
Where did those parts come from？ Dell uses multiple suppliers for most of the thirty
key components that go into its notebooks。 That way if one supplier breaks down or
cannot meet a surge in demand； Dell is not left in the lurch。 So here are the key
suppliers for my Inspiron 600m notebook： The Intel microprocessor came from an Intel
factory either in the Philippines； Costa Rica； Malaysia； or China。 The memory came
from a Korean…owned factory in Korea （Samsung）； a Taiwanese…owned factory in Taiwan
（Nanya）； a German…owned factory in Germany （Infineon）； or a Japanese…owned factory
in Japan （Elpida）。 My graphics card was shipped from either a Taiwanese…owned factory
in China （MSI） or a Chinese…run factory in China （Foxconn）。 The cooling fan came from
a Taiwanese…owned factory in Taiwan （CCI or Auras）。 The motherboard came from either
a Korean…owned factory in Shanghai （Samsung）； a Taiwanese…owned factory in Shanghai
（Quanta）； or a Taiwanese…owned factory in Taiwan （Compal or Wistron）。 The keyboard
came from either a Japanese…owned company in Tianjin； China （Alps）； a Taiwanese…owned
factory in Shenzen； China （Sunrex）； or a Taiwanese417
owned factory in Suzhou； China （Darfon）。 The LCD display was made in either South
Korea （Samsung or LG。Philips LCD）； Japan （Toshiba or Sharp）； or Taiwan （Chi Mei
Optoelectronics； Hannstar Display； or AU Optronics）。 The wireless card came from
either an American…owned factory in China （Agere） or Malaysia （Arrow）； or a
Taiwanese…owned factory in Taiwan （Askey or Gemtek） or China （USI）。 The modem was
made by either a Taiwanese…owned company in China （Asustek or Liteon） or a Chinese…run
company in China （Foxconn）。 The battery came from an American…owned factory in
Malaysia （Motorola）； a Japanese…owned factory in Mexico or Malaysia or China （Sanyo）；
or a South Korean or Taiwanese factory in either of those two countries （SDI or Simplo）。
The hard disk drive was made by an American…owned factory in Singapore （Seagate）；
a Japanese…owned company in Thailand （Hitachi or Fujitsu）； or a Japanese…owned
factory in the Philippines （Toshiba）。 The CD/DVD drive came from a South Korean…owned
company with factories in Indonesia and the Philippines （Samsung）； a Japanese…owned
factory in China or Malaysia （NEC）； a Japanese…owned factory in Indonesia； China；
or Malaysia（Teac）； or a Japanese…owned factoryin China （Sony）。 The notebook carrying
bag was made by either an Irish…owned company in China （Tenba） or an American…owned
company in China （Targus； Samsonite； or Pacific Design）。 The power adapter was made
by either a Thai…owned factory in Thailand （Delta） or a Taiwanese； Korean； or
American…owned factory in China （Liteon； Samsung； or Mobility）。 The power cord was
made by a British…owned company with factories in China； Malaysia； and India （Volex）。
The removable memory stick was made by either an Israeli…owned company in Israel
（M…System） or an American…owned company with a factory in Malaysia （Smart Modular）。
This supply chain symphony…from my order over the phone to production to delivery
to my house…is one of the wonders of the flat world。
〃We have to do a lot of collaborating；〃 said Hunter。 〃Michael ＇Dell＇ personally knows
the CEOs of these companies； and we are constantly working with them on process
improvements and real…time demand/supply balancing。〃 Demand shaping goes on
constantly； said Hunter。 What is 〃demand shaping〃？ It works like this： At 10 a。m。
Austin time； Dell discovers that so many customers have ordered notebooks with
40…gigabyte
418
hard drives since the morning that its supply chain will run short in two hours。 That
signal is automatically relayed to Dell's marketing department and to Dell。com and
to all the Dell phone operators taking orders。 If you happen to call to place your
Dell order at 10：30 a。m。； the Dell representative will say to you； 〃Tom； it's your
lucky day！ For the next hour we are offering 60…gigabyte hard drives with the notebook
you want…for only 10 more than the 40…gig drive。 And if you act now； Dell will throw
in a carrying case along with your purchase； because we so value you as a customer。〃
In an hour or two； using such promotions； Dell can reshape the demand for any part
of any notebook or desktop to correspond with the projected supply in its global supply
chain。 Today memory might be on sale； tomorrow it might be CD…ROMs。
Picking up the story of my notebook； on April 13； at 11：29 a。m。； all the parts had
been plucked from the just…in…time inventory bins in Penang； and the computer was
assembled there by A。 Sathini； a team member 〃who manually screwed together all of
the parts from kitting as well as the labels needed for Tom's system；〃 said Dell in
their production report to me。 〃The system was then sent down the conveyor to go to
burn； where Tom's specified software was downloaded。〃 Dell has huge server banks
stocked with the latest in Microsoft； Norton Utilities； and other popular software
applications； which are downloaded into each new computer according to the specific
tastes of the customer。
〃By 2：45 p。m。； Tom's software had been successfully downloaded； and ＇was＇ manually
moved to the boxing line。 By 4：05 p。m。； Tom's system ＇was＇ placed in protective foam
and a shuttle box； with alabel； which contains his order number； tracking code； system
type； and shipping code。 By 6：04 p。m。； Tom's system had been loaded on a pallet with
a specified manifest； which gives the Merge facility visibility to when the system
will arrive； whatpallet it will be on （out of 75＋pallets with152 systems per pallet）；
and to what address Tom's system will ship。 By 6：26 p。m。； Tom's system left ＇the Dell
factory＇ to head to the Penang； Malaysia； airport。〃
Six days a week Dell charters a China Airlines 747 out of Taiwan and flies it from
Penang to Nashville via Taipei。 Each 747 leaves with twenty…five thousand Dell
notebooks that weigh altogether 110；000 kilograms；
or 50；000 pounds。 It is the only 747 that ever lands in Nashville； except Air Force
One； when the president visits。 〃By April 15； 2004； at 7：41 a。m。； Tom's system arrived
at ＇Nashville＇ with other Dell systems from Penang and Limerick。 By 11：58 a。m。； Tom's
system ＇was＇ inserted into a larger box； which went down the boxing line to the
specific external parts that Tom had ordered。〃
That was thirteen days after I'd ordered it。 Had there not been a parts delay in
Malaysia when my order first arrived； the time between when I phoned in my purchase；
when the notebook was assembled in Penang； and its arrival in Nashville would have
been only four days。 Hunter said the total supply chain for my computer； including
suppliers of suppliers； involved about four hundred companies in North America；
Europe； and primarily Asia； but with thirty key players。 Somehow； though； it all came
together。 As Dell reported： On April 15； 2004； at 12：59 p。m。； 〃Tom's system had been
shipped from ＇Nashville＇ and was tenured by UPS shipping LTL （3…5…day ground；
specified by Tom）； with UPS tracking number 1Z13WA374253514697。 By April 19； 2004；
at 6：41 p。m。； Tom's system arrived in Bethesda； MD； and was signed for。〃
I am telling you the story of my notebook to tell a larger story of geopolitics in
the flat world。 To all the forces mentioned in the previous chapter that are still
holding back the flattening of the world； or could actually reverse the process； one
has to add a more traditional threat； and that is an outbreak of a good； old…fashioned；
world…shaking； economy…destroying war。 It could be China deciding once and for all
to eliminate Taiwan as an independent state； or North Korea； out of fear or insanity；
using one of its nuclear weapons against South Korea or Japan； or Israel and a
soon…to…be…nuclear Iran going at each other； or India and Pakistan finally nuking
it out。 These and other classic geopolitical conflicts could erupt at any time and
either slow the flattening of the world or seriously unflatten it。
The real subject of this chapter is how these classic geopolitical threats might be
moderated or influenced by the new forms of collaboration fostered and demanded by
the flat world…particularly supply420
chaining。 The flattening of the world is too young for us to draw any definitive
conclusions。 What is certain； though； is that as the world flattens； one of the most
interesting dramas to