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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,
On many occasions, Apple Inc. has been voted to boast the most efficient supply chain in the world. By leveraging wealth and pure business strength, Apple has been able to construct a supply chain that is both efficient and highly profitable. While much of this supply chain construction has come from great investing and business decisions by Steve Jobs and Tim Cook, it has come at the cost of many factory workers’ well being overseas. Overall, the construction of the highly organized supply chain has given Apple a competitive advantage over the rest of the market.
Access to distribution channels: Accessing major distribution channels might be challenging and it stands to be a significant barrier. Apple products are sold by third party retailers, Apple brick and mortar stores and on Apple’s website. It might not be too easy for a new entrant to convince a third-party retailer to prioritize its product over major products like Apple’s.
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 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%
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
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-
In a traditional manufacturing company, the supply chain covers the following roles: suppliers, labour, engineering, production, product, quality assurance, inventory, competitors and customers. The last role, that of customers, is different from the rest of the roles within a classic supply chain, meaning that suppliers are oriented upstream, while customers downstream; the labour is situated internally, while customers are external; engineering is done only by qualified engineers; production is protected from customers; products represent the offering that the customers obtain; quality assurance prevents faulty products to get to the customers; inventory can be managed in order to saturate the demand in time; and finally competitors offer customers different choices to satisfy their needs. Taking separately, the customer role in the traditional supply chain often resumes at “selecting, paying for, and using the outputs” and sometimes proving feed-back and promoting a company’s offerings by recommending to others (Sampson and Spring,
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
Apple Incorporated is one of the largest and most powerful brands on the planet, and are among the technological empires leading the charge in future tech developments. It comes as no surprise that Apple is the most profitable technology company on the planet, with their annual net profit exceeding $50bn in 2015 (Chen, 2015), and that figure continuing to rise with each passing year. Due to this stature, it is surely correct to assume Apple have the responsibility to set a certain precedent when it comes to the obtainment of required materials, creation process of their products, treatment of their workforce, and other similar day-to-day elements of running a multinational company. These create the foundation on
“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
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.
Amazon.com was a venture into an emerging market of internet and had to face hidden and unexpected hurdles in order to survive and excel in the market. Therefore, Amazon.com kept modifying its strategies with their focus on enhancing customer experience of online shopping and to delivery exceptional services with complete convenience to their customers. One of the major strategic decisions was to compromise on cost saving stragegy when Amazon.com started to maintain its own warehouses in different countries in order to ensure timely and accurate delivery to their customers
Apple Inc. is one of the largest companies in technology and software that the medical industry has the ability to benefit from. Apple has marketed the world in all types of technology and devices. Apple would be the best company to merge with the medical industry. Their products could be designed specifically for an individual that has medical challenges. They could provide an opportunity to children that are not able to attend school therefore they could design a device and program that would allow a child the chance to feel as though they are in a classroom setting by way of virtual technology. Apple has no boundaries, when it comes to technology and with that on their side, they could create numerous opportunities
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.
After that, Apple Inc. has outsourced its assembly to manufacturing companies at China for economic reasons. Apple Inc. partnered with these manufacturing companies that understand Apple’s products require different techniques and approaches, which often must be accommodated by very little lead time. According to Samantha Nielson (2014), all planning is carried out in secrecy to avoid information leaks. In a nutshell, Apple purchases components and materials from various suppliers and then gets them shipped to the assembling plant in