Apple Supply Chain Strategy

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Apple
Apple is one of the largest and most powerful technology companies around the world, and one of the best example of the electronic product that gives the value for the technological field that we start living in since the Iphone was born. Apple has the market value to make it the largest private company in the world, and we all know its distinctive products and unique devices of iPhone and iPad as well as MacBook and private operating system, and Apple consider the world's ninth-largest company by revenue
Apple has a chaApple was founded by Steve Jobs and Steve Wozniak on April 1, 1907, a multinational company that manufactures electronic devices, such as personal computers and laptops, computer software, commercial servers, and a digital …show more content…

Under the many suppliers strategy, a supplier responds to the demands and specifications of a request for a quote and the orders going to the lowest bidder (Heizer & Render, 2011). This allows Apple the ability to keep costs low, which in turn increases profits. Product development starts with the development team at Apple. Then, the developers spend many months at manufacturing facilities taking the prototype into a mass-produced device (Satariano & Burrows, 2011). Apple then asks for bids on production and awards the lowest …show more content…

Apple’s secrete weapon is their large sums of cash on hand (Satariano & Burrows, 2011). Apple has even announced it is going to be doubling its capital spending on the supply chain and increase prepayments to key suppliers (Satariano & Burrows, 2011). This gives Apple’s suppliers the drive to stay a supplier for Apple. This in turn guarantees Apple with lower prices and availability from their suppliers. When negotiating Apple uses the cost based price model, which requires that the supplier open its books to the purchaser. Apple’s large sums of cash, have allowed them the upper hand in negotiations with their suppliers.
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

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