Module 3 Essay

            We know now that outsourcing is when a company employs individuals in a foreign land to complete certain elements of the business.  Offshoring is when a business relocates an entire factory and completes the entire process on foreign soil.  It may be an American company but it is operating solely out of somewhere like China.  Why might companies choose offshoring as opposed to keeping their entire business in the United States?  It’s all because of the bottom line, and the fact of the matter is that if China can produce the same product the same way for less cost and lower taxes, then to China we will go!  Cheaper labor is not the only incentive for businesses however.  Another motivating factor, according to our text, is “to serve that foreign market without having to worry about trade barriers and to gain a dominant foothold there”.  With a market as large as China, why wouldn’t American companies want to be on the front lines for millions of consumers?

            Consumers are the driving force behind all these different companies.  We as consumers are the ones spending our money buying the products that are being manufactured, and it is our opinion that counts.  Companies need to know what it is that we want to buy so they can provide it before we have lost interest or found it elsewhere.  This is where supply-chaining becomes important.  We want the newest and latest and we want it NOW!  If you can’t provide it to us now then there are plenty of your competitors just waiting for our business.  As one of the best supply chain operators of all time, Wal-Mart has pioneered innovations and techniques that keep its inventory stocked and affordable.  Wal-Mart became the biggest retailer in the world because it focused on new technology.  They keep their prices down by purchasing directly from the manufacturers, building their own distribution centers in order to accommodate those manufacturers, and then providing their own delivery vehicles.  Wal-Mart was one of the first companies to introduce computers for tracking inventory and providing that information to suppliers.  Wal-Mart knew that the more efficient it could be in tracking what the customers were buying, the more it could tailor the supply to the consumer’s needs.  With the use of RFID (radio frequency microchips) Wal-Mart is able to monitor every aspect of market activity which gets them that much closer to a complete balance in supply and demand.  As a consumer I am glad to know that if I am ever caught in a hurricane in Florida I know that Wal-Mart will already be one step ahead of me and stocking its stores with beer for the masses.  Who would ever want to be stuck in a hurricane without beer?  Thank you Wal-Mart, we appreciate you keeping an eye on the weather!

            Flattener #9 is In-forming…in other words: GOOGLE.  How did we ever live without Google is what I want to know?  But Google is a double edged sword, because although it is nice to be so informed about anything and everything, this also means that any blemish on our record is not so easily hidden.  As a former wild child I cringe at the thought of my name being googled.  In the digital age NOTHING is forgotten!  It is great for businesses however; they can know almost anything about their employees before they hire them!  Google offers other benefits to companies in the name of advertising and search results.  According to google.com/economicimpact, 97 percent of internet users look online for local products and services.  I know I do!  If Siri does not suggest your business then you and I will never meet!