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Apple Inc. managing a global supply chain case
Apple inc.: managing a global supply chain fraser p. johnson, ken mark
Apple Inc. managing a global supply chain case
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Apple Company has a broad supply chain which extended to several regions around the world. To well understand the diagram shown above, initially, it’s necessary to clarify and define supply chain concept. The supply chain is a network consists of a number of businesses, individuals, technology, materials and inputs which contributes in manufacturing and selling the firm’s products. (Supply Chain (SC), 2013) As it’s clear from the above diagram, Apple’s supply chain is breaking down to five main processes and they will be explaining and discussing here in this part of our project in details. First of all, Sourcing is the basic step in every supply chain because it’s similarly like the columns in the construction, without them, it will be weak, …show more content…
Apple products manufacturing is carrying out in china only where all needed bits of products collected from suppliers are assembling there to start production. One of the reasons that makes the majority of businesses around the world to carry out their manufacturing processes especially in china is that Chines people accept low wages which results from having a very high population. As a result, Apple and the majority of businesses nowadays tend to build their facilities and carry out their production in poor or countries with high population. That would give them the potential to reduce costs and then increase profits. Apples owns factories in China where all their production carrying out till they submit finished …show more content…
As we said in the preceding process, Apple Company rely on two warehouses with different sizes. This can be explained as a smart technique to meet different types of customer needs and orders efficiently. Those customers who purchase Apple’s products using its Online Store, their order will be shipped to them from Apple’s intermediate warehouse via United Parcel Service of America (UPS). Apple uses the large warehouse factory which is via Elk Grove in California, to provide distributors, wholesalers, network carriers, direct sales, and retail stores such as Carrefoure, Sahraf DG, JUMBO and many other retailers. This warehouse factory is considered as a central warehouse and also it includes a call center. (Is Apple Supply Chain Really the No. 1? A Case Study,
Complex linkage management entails planning and management of business activities involving procurement and sourcing, logistics and transportation activities. It also includes collaboration and coordination with business partner in all parts of the world. The business partners can be customers, intermediaries and suppliers of Apple product. Complex linkage integrates function with responsibility for linking Apple business functions across its companies. It includes manufacturing operations and coordination of Apple’s product design, marketing, sales and transfer of information concerning the products Complex linkage also entails the relationship between the cost of production and the price of the product at the international market. It is advisable for the company to focus on their market stock while determine linkage. There are several factors that favor complex linkage. At the international level, market diversification is a necessary condition for international complex linkage. Formulation of alliance policies and agreement with overseas suppliers is another factor for competitiveness.
Apple has garnered a competitive advantage through all aspects of the supply chain. On the production front, Apple has made many high-priced
Apple is a large multinational corporation with a well-known reputation as the world’s second-largest information technology company. They are one of the top 10 American companies and one of the most valuable brands in the world. Apple has several different suppliers throughout the world that they partner with for their supply chain. As a well-known company, you might think that they are cautious about who they choose to do business with.
Apple Inc. is one of the world’s most successful companies when it comes to supply chain management. In its early years the company struggled forecasting demand and managing inventory causing many issues in supply chain including stock-outs. As years went on Apple began investing heavily in their supply chain, controlling many aspects such as overseas production, assembly and logistics. While Apple still faces some challenges including things such as technology, competition, global market share, and leadership, it is still ranked as a master company in supply chain according to Gartner Inc, making a great company to invest in.
Apple pays about $6 billion annually in federal taxes on these sales. Congress has no authority over sales outside of the United States. This is where one has to question the United States antiquated corporate tax system, which was created long before it was common for United States corporations to have such global operations. It does not seem reasonable to expect a company to bring the money back to the United States just to be taxed at 39%, just because it is the right thing to do. If the tax code was written in a way that allowed foreign profits to be repatriated at a single digit percentage rate, I believe more companies would prefer to have their money in the United States. This is not going to happen at the current 39%
Coolcargo and Frito-Lay implemented technical solutions for agricultural-products transportation following customers’ requirements. Coolcargo developed a transport-system for maintain fresh asparagus at controlled temperature from production site in Thailand to final destination in UK (UOL, 2013). Frito-Lay developed a global agile supply-chain for manufacturing and distributing salty-snacks to end-customers that allows processing agricultural-products in less than 24 hours for flavor guarantee (PepsiCo, 2013).
By now we should be lost in thoughts as to why China is getting a big bite of apple every passing day. Well, this is because Apple has had a goal of operating 40 apple stores in China in the space of two years as quoted by the Apple retail chief
Apple’s supply chain is one of the top performing supply chains in the world. According to AMR’s recent findings, Apple was named the best supply chain in the world for a third consecutive year (Apple's Supply Chaing Tops AMR Ranking, 2010). This illustrates that Apple is doing something right with their supply chain. Even when Apple launches a product, they have enough products to meet the demand (Satariano & Burrows, 2011). Since Apple is in the number one spot, there is little room for improvement to their supply
the inherent supply chain in this industry, which is done through encouraging the collaboration of all these elements in a given project. Some of the unique barriers in the process have been discussed below-
“Apple's iPhone: Designed in California But Manufactured Fast All Around the World (Infographic).” Entrepreneur, 11 Sept. 2013, www.entrepreneur.com/article/228315.) That creates an issue for the economy since that makes America dependent on China do them manufacturing most things we use. With all the iPhones sold in the world none are made in US which is a lost potential for more job opportunities “70 million IPhones were sold in 2011 none of them were made in America.”(Kabin, Benjamin. “Apple's iPhone: Designed in California But Manufactured Fast All Around the World (Infographic).” Entrepreneur, 11 Sept. 2013, www.entrepreneur.com/article/228315.) As we know Apple is one the richest companies in the world which we would assume can afford to give their employees some benefits but unfortunately the employees have to work in horrible conditions “However, the workers assembling iPhones, iPads and other devices often labor in harsh conditions, according to employees inside those plants, worker advocates and documents published by companies themselves.”(Barboza, Charles Duhigg and David. “Apple's iPad and the Human Costs for Workers in China.” The New York Times, The New York Times, 25
Apple Inc. is located in Cupertino, California and was established in 1976. Apple Inc. designs, manufactures and markets mobile and media devices, personal computers and portable digital music players. They also sell a variety of related software, services, and networking solutions. As of this writing, Apple Inc. is the first United States Company to reach a market valuation of over seven hundred billion dollars (Higgins 2015).
In the U.S., Amazon uses a centralized shipping platform, which it calls Fulfilment by Amazon (FBA), to store and distribute the products it sells. Sellers send their goods to Amazon’s fulfilment centres and pay a fee for the corporation to store, pick, pack, and ship their wares. Amazon implemented FBA in India as well, and to date has built nearly two dozen warehouses there, the largest one in Kothari in Telangana.
The company sources from all around the globe. For instance, the sourcing already covered certain Asian countries and the United States for Apple’s iPhone alone. In details, Apple Inc. purchases the CPU and video chips from Samsung, Singapore and baseband communication from Infineon, Singapore. At the same time, the iPhone’s digital camera modules, internal circuitry, connectors, Bluetooth, circuit board and casings are brought in from Taiwan while the United States only provides the iPhone’s touch screen control and the 802.11 specific parts. This clearly shows the trend of global sourcing in the Apple’s supply chain function.
If more issues were to persist with such a fundamental supplier it may prompt intervention from other parties or bodies that would impair the supply of a product which is already in high demand. It is therefore in the best interests of Apple themselves to work to address all such concerns within their supply chain accordingly and demonstrate the same leadership in terms of social responsibility as they have in technical development and innovation.
Apple keeps product SKUs simple, the salespeople inside the stores have the in depth knowledge of the products. Just think that when you enter an Apple store and one of the sales staff greets you, you’re not asked, “How can I help you?” Rather they ask, “What would you like to do today?” They satisfy you by going to the heart of any technology user’s question, any question related to the technologyand the user is interested in.