James malakoff, special assistant to the president, global operations, estee lauder companies excellent explanation of the supply chain issueschallenges of todays markets. If the business strategy is to be the low cost provider, the supply chain strategy should support this. Apples supply chain diversification hitting samsungs chip. Pdf apples supply chain strategy harshaka hettiarachchi. Pdf an examination of external risk factors in apple inc. This manuscript does not pretend to have a precise roadmap to follow in order to achieve desired supply chain maturity and excellence. Although apple s supply chain strategy has been lauded for years, its designed exclusively to benefit apple. Optimization of a global distribution network for semiconductors that reduced the supply chain costs by 20%. The case studies below are just a few examples of achievements from establish supply chain consultants together with clients. Jun 25, 2015 although apple is recognized as a global leader in supply chain management, the company has received criticism for its suppliers unethical labor practices. According to the apics dictionary, 14th edition, the strategy of an enterprise identifies how a company will function in its environment. Fundamentals of supply chain theory, second edition contains new chapters on transportation traveling salesman and vehicle routing problems, integrated supply chain models, and applications of supply chain theory. The supply chain strategy can be viewed as the pattern of decisions related to sourcing product, capacity planning, conversion of finished product, deployment of finished product, demand management and communication, and delivery.
An analyst for a money management firm is studying apple inc. A supply chain is a collection of suppliers required to create one specific product for a company. Apples approach to supply chain management has been one of the main drivers of its success, drawing plaudits for its attention to detail and agility. We will examine apple s strategy of being consumer based and evaluate the current state of business and some of the partnerships it has formed to remain one of the dominating forces in this industry. Apples supply chain management by prezi user on prezi. Although apple is recognized as a global leader in supply chain management, the company has received criticism for its suppliers unethical labor practices. The aforementioned nhs for instance has partnered with a large logisticsservice company, which owns the distribution centres and transport fleets that supply nhs. Supply chain management use of technology best practice business goals decision making big picture teamwork insight how to get.
Supply chain strategy is really not that hard to get right. Apple could take that design, give it to factories in asia, and get the product delivered to customers with gross margins of 70%. Jun 04, 2015 according to more than a dozen interviews with former employees, executives at suppliers and management experts familiar with the companys operations, apple has built a closed ecosystem where it exerts control over nearly every piece of the supply chain, from design to retail store according to mike fawkes, the former supply chain chief. Stanford supply chain forum call it distribution or logistics or supply chain management. Bloomberg argue that its lost its mojo, but greenpeace rate the tech giant as a sustainability pioneer. Apple is adopting a more for more strategy in marketing their products. Apple was voted as the leading supply chain worldwide for a number of years between 2010 and 20 by research and advisory firm, gartner, before being placed into a new masters category because of sustained leadership in its supply chain. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.
According to the research firm, gartner group, it had the worlds best supply chain, ranking ahead of companies such as walmart, amazon and inditex. Jul 06, 2016 challenges apple supply chain like other supply chains, apples supply chain has very high risk associated with it. At best, supply chain strategy can be the enabler of the business strategy. Some resellers may also distribute products from the competing manufacturers. Every year, we improve upon the progress we make to protect the people in our supply chain and the planet. Apples supply chain from the factory floor to retail stores. Examples from an actual deployment illustrate the steps, and show that the output called the. Agility means responding quickly to changes in demand in terms of both volume and variety 8. This case study will show you the analysis of apples supply chain core processes, challenging issues and complexities of its operations. Executive summary in this executive summary, i will introduce the ideas and details of apple incs supply chain in its current state. Managing returns and reverse logistics sample assignment in operations strategy cover page apple inc managing returns and reverse logistics. Join them to deliver innovative component technologies, coordinate the global supply chain, and collaborate closely with apple s key technology and manufacturing partners. And just like when developing a business strategy, look to your core.
What are the current best books on apple supply chain. Apple inc report contains a full version of apple value chain analysis. Inventories can become obsolete or exceed the anticipated demand. By whatever name it is the sinuous, gritty, and cumbersome process by. Apple is a shining example for companies looking to create user friendly and well designed products. Guide vdr, wassenhove lnv 2009 the evolution of closedloop supply. Todays supply chain managers have been bombarded with a wide variety of the socalled leadingedge supply chain strategies.
In a letter to shareholders on wednesday, tim cook pointed to slowing growth in china, the worlds secondbiggest economy, as the key factor in lowering its quarterly sales forecast, it was the first time apple has issued a warning on revenue ahead of quarterly results since the iphone was launched in 2007. See below for some of the leaked photos and contents of it. The apple supplier list represents 98 percent of procurement expenditures for materials, manufacturing, and. No, apple genius training student workbook download available yet. Based on the ranking from gartner, apple is the top of supply chain excellence, followed by mcdonald and amazon. Pdf this chapter discusses basic supply chain and operations strategies. Introduction founder steve jobs andsteve wozniak foundedapple computer inc. Some people in the blogosphere said that apple s supply chain is not that complicated. We work with suppliers, from mining to recycling, to verify that our requirements are being met for the people and communities in our supply chain. In apple s case, the 10 decisions of operations management are carefully implemented through coordinated efforts in product design and development, sales and marketing, and the firms supply chain, along with the companys other business areas. We look at what apple have done to reinvent their supply. Overall this strategy calls for apple to focus on their competencies and move away from inefficient practices of the past. The chain is made up of nodes or links, which can include multiple manufacturers for parts, then the completed product, then the warehouse where it is stored, then its distribution centers, and finally, the store where a consumer can purchase it. The report illustrates the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, ansoff matrix and mckinsey 7s model on apple.
Developing and implementing a supply chain strategy is essential for maintaining competitive position. Aug 05, 2014 this supply chain diversification may benefit apple, but it is having a negative effect on rival samsungs chip manufacturing business, reports the wall street journal. Apple supplier responsibility 2019 supplier list 1 the apple supplier list details our top 200 suppliers based on spend, and outlines the supplier facilities which provide services to our supply chain. Supply chain plays a vital role in delivering the unilever sustainable living plan uslp. In their case, a breakdown in trade treaties between two countries in which the company had presence forced them to reanalyze their supply chain strategy in order to look for new locations. Transforming supply chains in digital content delivery. We will examine apples strategy of being consumer based and evaluate the current state of business and some of the partnerships it has formed to remain one of the. Two recent studies report varying performance levels in apple s supply chain. Establish has a long trackrecord within supply chain design. Accountability ensure supply chain partners understand issues and resolution requirements. Apple eventually developed its own locationtracking software, but skyhook never regretted its role in apple s supply chain. Competing against time, a book about using supply chains as a strategic weapon in business. Applesamsung product manufacturercomponent supplier.
The impact of social media on apple s supply chain. Choose the best one for your organization, and youll manage your business more effectively. Allowing themselves to think outside of their proprietary boxes will no doubt increase their abilities to see ahead on the road to profitability. This case study will show you the analysis of apple s supply chain core processes, challenging issues and complexities of its operations.
New terminologies and initiatives are being developed constantly. Apple supply chain issues reveal possible problems for. A c ompany may fail due to the lack of s trategic fit to strive the balance. Conclusion a supply chain like apple s is not only risky for the upstream supplier, but can be risky business for apple and its downstream suppliers as well. It does, however, offer insight as to the key attributes that should be adopted or addressed. Valuable lessons can be learned from the companys supply chain processes, a supply chain ranked by gartner as the number one in the world.
In 2015, it was even promoted from gartners top 25 supply chains of 2015 to their supply chain masters category, having topped the list for three years in a row. Gives direction to and helps align supply chain strategy. Jan 08, 2018 is the amazon supply chain the most innovative in the world. The ultimate goal of every such management is to get the product delivered to customers wherever and however they want it. This allows apple to charge more by providing superior products. Applea supply chain model of excellence supply and demand. Traceability understand the root cause and source of quality issues in your supply chain 3.
Sure, but first, lets spend a little time critiquing apples supply chain. James hogan for understanding apple s supply chain with focus on apple iphone, supplier selection and global supply chain management. Apples supply chain cost of making the iphone 7 supply. This resulted in a huge investment and the company had to incur in high costs. This manual was developed with significant input from subject matter experts. Scm 303 presentation by marissa cantu sondra cuenca michael houang daundrea walker edited by sondra cuenca references. Innovative sourcing and logistics for a fiercely competitive world the secret to succeeding in a disruptive world. Read our white paper on apples paper and packaging strategy pdf.
James hogan for understanding apples supply chain with focus on apple iphone, supplier selection and global supply chain management. Benefits from extending quality management practices into the supply chain 1. One of the major challenges uilding capacity in health supply chain b. Addition of a new supplier will provide a greater flexibility and apple can react faster to supply chain disruptions, should they arise. Apples supply chain strategy it is important to have a consistency between customer priorities of competitive advantage strategy and supply chain capabilities specified by the supply chain. The strategy specifies how to satisfy customers, how to grow the business, how to compete. So how does apple s supply chain keep up with the high demand and constant pressure to be faster. Apple s supply chain from the factory floor to retail stores. As a result of its strong commitment towards safe and ethical manufacturing practices, apple needs to be in a position to sever ties with any supplier that doesn. Linking supply chain strategy to the business strategy involves. For a long time apple have been held up as a shining example for companies looking to create user friendly and well designed products.
Taking orders online provides realtime visibility into enduser demand patterns and. What most of us wont be aware of however is how advanced their supply chain capabilities are they are widely regarded as an industry leader in the field due to the speed at which they can scale operations to fit customer demand. Supply chain strategy report make the most of supply chain strategy apics point of view strategy. According to martin, the logistics executive, cook uses a catchphrase to hammer home the need.
In 2018, a total of 1049 supplier assessments were conducted in 45 countries. In a manufacturing supply chain, where component suppliers enter. Visibility identify issues early before they become costly quality incidents 2. Empirical case study in europe and asia according to the resourcebased view, the resources of a. We leverage technology across the supply chain to ensure we are digitally enabled for the connected world and to help drive the transformation of our business with speed. Incorporated in 1977in 2007 named changedto apple inc. Supply chain strategy logistics strategy logistics bureau. At least 97% of apple s procurement expenditures for materials, manufacturing and assembly of products are finished worldwide in 20.
Supply chain management is ideally based on good team work. It was michael e porter of the harvard business school who introduced the concept of value chain. With an unrivalled supply chain strategy that companies the world over look to as an example, it is. Four best practices to improve quality in the supply chain lower supply chain risks and cost of quality. And we share our work openly so others can follow our lead. Four best practices to improve quality in the supply chain. Oct 24, 2016 fleet ownership and outsourcing in hospital supply chains. Previous supply chain snags have hit lessimportant apple products, like its watch, which is a small sliver of the companys revenue, bloomberg reporter alex webb notes in an interview with.
A case study in apple 1081 and agility of the international supply chain may determine the survival of a firm 7. Supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. Is apple changing its approach to supply chain management. One thing that differentiates apple s supply chain from other technology producers is the fact that apple offers only a small variety of products. Apple invests a lot of capital into its suppliers, this is beneficial for both the supplier and apple itself, however. The sheer volume of products apple makes requires an incredibly complex and farreaching supply chain. New sections have also been added throughout, on topics including machine learning models for forecasting, conic optimization for. Resourcebased view is a complement to the traditional emphasis of industrial eco. Apple products are unique, and they couldnt happen without this teams specialized talents. Mar 12, 2019 in my opinion, this book fits the category you are asking the supply chain revolution. The apple supplier list represents 98 percent of procurement expenditures for materials, manufacturing, and assembly of our products worldwide for fiscal year 2018. The supply chain disaster preparedness manual is designed to help supply chain managers become more familiar with the hazard scenarios likely to impact their facilities or systems and their communities.
Since apple s release of the iphone in 2007, over one billion devices have been sold around the world. Healthcare organisations appear to be divided regarding the pros and cons of owning supply chain facilities and assets. Apr 28, 2019 apple inc report contains a full version of apple value chain analysis. Apples supply chain attracts criticism for performance. Agile manufacturing enterprises have the ca pability to responding to. As companies have pursued this broadened supply chain strategy, the ability to manage quality risk has. As a part of sc strategy, the definition of preassembled components. Pdf operations and supply chain strategy researchgate. One key aspect of apples supply chain is its use of multiple suppliers for the same component. The value chain includes the entire range of activities from the beginning to the end involved in bringing the product to the market and the end user. The aidsrelief health supply chain management manual was written in responseto field requests for support in building and maintaining sustainable health supply chain management systems in resourcelimited settings in africa, latin america and the caribbean. As part of the strategy development process, firms must select projects that best achieve.
This is the case in the aforementioned applesamsung example, where the. Reviews on this aspect of apples supply chain strategy to examine the role that boards and directors can play in enhancing supply chain management and organisational performance. Dec 01, 2017 created using powtoon free sign up at create animated videos and animated presentations for free. Apple s approach to supply chain management has been one of the main drivers of its success, drawing plaudits for its attention to detail and agility. In fact, about 20 percent of the us population owns iphones. Supply chain strategies generally conform to one of six types. To that end, its purpose is to help supply chain managers. Pdf the apple computer company has evolved into one of the most innovative. Hettiarachchi and others published apples supply chain strategy find, read and cite all the research you need on researchgate. Sep 07, 2012 if you are looking for downloaded or pdf version of the apples secret genius training manual then chances is you wont be able to find one. A very strong argument can be made that they are despite some announcements that were pie in the sky like the patent they won in january for floating warehouses that use drones for deliveries and replenishment. Supply chain strategy is not simply a linear derivative of the business strategy.
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