Tuesday, July 18, 2006

Thinking Systemic, Not Linear

The solution was, in my mind, to have an integrated air and ground system, which had never been done. And to operate not on a linear basis, where you try to take things from one point to another, but operate in a systemic manner. Sort of the way a bank clearing house does, you know? They have a bank clearing house in the middle of all the banks and everybody sends someone down there and they swap everything around. Well, that had been done in transportation before: the Indian post office, the French post office. American Airlines had tried a system like that shortly after World War II. But the demand side and supply side had really not met at an appropriate level of maturation.

From a 1998 interview with Frederick W. Smith, founder of FederalExpress.

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