Nortel Networks Essay Example | Topics and Well Written Essays - 1000 words

Nortel Net imprints - Essay ExampleWhen a customer initiates an order, it goes to one of twenty Logistics Operating Centers (LOCs) worldwide, which wherefore determines the best combination of services that could be exchanged among the customer- amount of moneyed rings. It is the LOC that is in-charge of the order that looks for the Nortel Network partners, key parts sources, and assemblers that atomic number 18 part of that ring around the customer and that would best meet the customers order at the lowest toll and in the fastest possible time.This LLSS- ground system differs from Nortels old supply reach structure, which was built around an swell sequence of activities that happened one after another. This traditional supply kitchen stove needed long lead multiplication and higher costs. With the new global logistics system, nameed around a networked framework, activities happen continually at the alike(p) time.What does this mean Rather than wait for the completion of a pr ior activity, say the assembly of sub-components before deliveries ar made, Nortels worldwide network of partners and suppliers are constantly on the move taking care of order fulfilment from several customers. An OEM for example can be doing production and assembly work for several clients at a time, each one with different or similar requirements, and managing various parts of the supply chain accord to standards established by Nortel.In other words, by outsourcing the lower value-added activities like assembly to third party providers, Nortel can focus instead on the high value-added activities like the jazzment of the global supply chain or research and development to improve existing products or come up with new ones based on more advanced technologies. This is only one among the many advantages that Nortel derives from its global logistics system.What are the othersWe have already discussed the customer-centered focus of the whole organization. By placing the customer at t he center of the logistics network, Nortel can work at the most-valuable but very tough and challenging task of ensuring that everyone maintains that customer focus. Customers then feel special, being the center of attention of the whole global organization, knowing that its orders could be met no matter how tough its specifications and deadlines would be. Of course, it is hard work for Nortel to do the work of integrating all of its alliance partners all over the globe, but that is part of the design of the system.We can also see how the system ensures speed of delivery to meet tight customer deadlines, because the administration gives Nortel and its partners the flexibility it needs to get the work done on time. Instead of managing the whole supply chain, which requires coordinate several factors at the same time, Nortels system delegates the management of portions of that supply chain by outsourcing. Rather than travail on the large stuff, it seems that Nortel and its partner s would rather sweat on the parts of that large stuff that they can manage well, and to concentrate on the large stuff of coordinating 20 manageable LOCs.This allows Nortel to keep its costs down, which it does in a very specific way. By keeping the suppliers of key parts in the supply chain conveniently located close to