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

Nortel Net exits - Essay ExampleWhen a customer initiates an raise, it goes to one and only(a) of twenty Logistics Operating Centers (LOCs) worldwide, which then determines the best conspiracy of services that could be exchanged among the customer-centered rings. It is the LOC that is in-charge of the order that looks for the Nortel Network partners, key move sources, and assemblers that are part of that ring around the customer and that would best meet the customers order at the lowest cost and in the fastest possible time.This LLSS-based system differs from Nortels old supply mountain chain structure, which was built around an orderly sequence of activities that proceeded one after another. This traditional supply chain needed long lead times and higher costs. With the new global logistics system, designed around a neted framework, activities happen continually at the same time.What does this mean Rather than wait for the completion of a prior activity, say the assembly of s ub-components before deliveries are made, Nortels worldwide network of partners and suppliers are constantly on the move taking care of order fulfillment from several customers. An OEM for example bunghole 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 according 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 focal point of the global supply chain or research and development to improve existing products or come up with new ones based on much 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 entirely organization. By placing the customer at the center of the lo gistics network, Nortel can work at the important 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 everyplace 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 arrangement gives Nortel and its partners the flexibility it necessitate to get the work done on time. Instead of managing the whole supply chain, which requires coordinating several factors at the same time, Nortels system delegates the management of portions of that supply chain by outsourcing. Rather than sweat on the large stuff, it seems that Nortel and its partners would rather s weat 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