Sophisticated logistics system and distribution channel
Description
To achieve the goal of offering children in poor area with $100 laptops and lower the cost as much as possible, besides the limitation of manufacturing cost and raw material cost, we have to take logistics cost into account. For instance, if we manufacture CPU and motherboard in Taiwan, assemble these components in China (There is an assembly line owned by Quanta in Shanghai for OLPC already). In this way, if we want to distribute the assembled computers to selected developing countries around the world, we have take advantage of the low cost of sophisticated logistics systems. In addition, even through the laptop OLPC offered should be quite stable and not easily break down, we still have to consider the repair of wicked laptops, both hardware and software. Therefore, to return laptops to manufactures or local repair agencies, still needs more sophisticated logistics systems.
Enabler
- Lower transport costs
- Operational research
- Globalization
- Accelerating of Vehicles/Airplanes speed.
- Warehouses and distribution center
Inhibitor
- Price of oil
- Other variable cost
- Local legislations
Paradigm
Expert