...Apple’s Supply Chain Management – An Overview Many supply chain professionals consider Apple’s supply chain to be the best in the world. But is that simply because Apple is among the most recognised brands in the world? For an objective analysis, a deeper look into the management and supply chain must be investigated thoroughly. However, in order to study Apple’s supply chain management, parameters on what a supply chain is must be set. Traditionally “Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.” Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. SCM works on three different levels, the strategic level, the tactical level and the operational level. All three are imperative for a company to function properly Apple is the best in the world at innovative product development. Because the company develops hardware, software, and associated digital services—rather than just focusing on one dimension—it can provide an unmatched user experience. This allows Apple to capture high margins from its products and services. But by many definitions alone, product development is not supply chain management; procurement, manufacturing, and logistics are. That said, Apple has a fascinating supply chain that is very different from...
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...Suffolk University Thien Le Apple iPhone 6 & 6 Plus Managing for quality is one of the most important issues that a firm has to take care of to sustain and grow its business. The overall quality of products plays a big role in brand reputation and reliability as well as in the improvement of customer satisfaction. As a “big guy” in the manufacturing of electronic devices, Apple has separated itself from other players by creating a high quality standard derived from its brand positioning that is rooted in the company’s culture. Every product has to go through a whole set of processes to make sure that it meets the highest standard of quality. Even though they are mass-produced, its products are detailed in a way that makes them look like they are finely crafted. All the products are integrated to insure that they are easy to use with minimal after-sale support. To make those things possible, suppliers of Apple are carefully selected and tested to ensure that they are able to conform to the standards set up by the company. The quality of products is evaluated based on internal and external quality metrics such as level of customer satisfaction and design conformance. Below is the result of an official survey conducted in 2013 on smart phone customer satisfaction by manufacturer which Apple was on the top. Apart from product quality, Apple also focuses on service quality. It provides Apple users with advice and technical support through its physical and online infrastructure...
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...associated risk within the Supply Chain Author: Mathijs Cornelis van Itterzon What are the consequences of a tsunami in Japan, with respect to the price of Apple stocks? If we ask a regular person this question, one may answer that it doesn’t have that much influence at all. Mainly because people have never heard of the company ShinEtsu, which is responsible for manufacturing thin silicon wafers for Apples products (Der Spiegel, 2011). What many people do not know is that when this Japanese manufacturer has been overwhelmed by a natural disaster risk of stock-out may appear and may harm other partners within the supply chain. One of the major customers is Foxconn in Taiwan which manufacturers Apple’s iPhone and iPad. Still we rely that Apple controls their supply chain well in order to produce sufficient iPhones for the market. Taiwan’s Foxconn is able to produce the iPhones and iPad due to the efficient and ‘justin-time’ delivery from the Japanese manufacturer. Natural disasters like the tsunami in Japan may disrupt the continuity in the supply chain with all the associated consequences. Risk management and mitigation strategies are suitable solutions, which may prevent a supply chain breakdown because one will get insight in high-risk situations, such as the situation in Japan and hence consider how to reduce the associated consequences (Chopra & Sodhi, Managing Risk to Avoid Supply Chain Breakdown, 2004). The current globalization of supply chains may have increased the...
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...International Operations Management Strategies of Apple Inc. Introduction Apple is an American multinational technology corporation which has been highly regarded for its innovative products for a long time. Apple is recognised by customers for its hardware products including iPhone, iPad, iMac, iPod and Apple Watch, which ingeniously combine advanced features, unparalleled user experience and attention to small details in design (University Alliance, 2016). As an multinational company, Apple has its well-appointed retailing system with 475 retail stores in 17 countries (MacRumors, 2016), as well as online Apple stores and iTunes Stores of different regions. According to Forbes Lists, the market Cap of Apple is $741.8 billion in May 2015, which was identified as the most valuable brand (worth $145.3 billions) in the world (Forbes.com, 2015). For the first fiscal quarter 2016 ended December 26, 2015, Apple reported quarterly revenue of $75.9 billion with a net income of $18.4 billion (Apple Reports Record First Quarter Results, 2016). $65.5 billion of the revenue was driven by the sales of iPhone, iPad and Mac; $6.05 billion was contributed by the sales of services including Internet Services, AppleCare, Apple Pay and other services; other ptoducts like Apple TV and Apple watch brought $4.35 billion of revenue to this quarter (See Appendix I). Apple Corporation was founded by Steve Jobs, Ronald Wayne and Steve Wozniak in 1976 to sell personal computers (Richardson,...
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...issue of Businessweek has an article on Apple that I am basically (given my profession) obliged to love (Apple’s Supply-Chain Secret? Hoard Laser, Nov 3). It opens by recounting how Apple invested heavily in a special kind of laser in order to implement a design element (a little green light on a laptop so that users would know that the camera is on) and builds to this: Most of Apple’s customers have probably never given that green light a second thought, but its creation speaks to a massive competitive advantage for Apple: Operations. This is the world of manufacturing, procurement, and logistics in which the new chief executive officer, Tim Cook, excelled, earning him the trust of Steve Jobs. According to more than a dozen interviews with former employees, executives at suppliers, and management experts familiar with the company’s operations, Apple has built a closed ecosystem where it exerts control over nearly every piece of the supply chain, from design to retail store. Because of its volume—and its occasional ruthlessness—Apple gets big discounts on parts, manufacturing capacity, and air freight. “Operations expertise is as big an asset for Apple as product innovation or marketing,” says Mike Fawkes, the former supply-chain chief at Hewlett-Packard (HPQ) and now a venture capitalist with VantagePoint Capital Partners. “They’ve taken operational excellence to a level never seen before.” So operations management is key for Apple! Does it get sexier than that?The article...
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...Natalie Murray MBA 500 Dr. Nikki Pierce July 2, 2015 Apple Inc. Apple Inc. is the perfect example of a company using the operation process and supply chain management. The operating process consists of taking an input, transforming it, and putting it on the market as an output (“Operations Processes,” 2013). To properly execute this process, one must have control over its supply chain. In this essay, we will go through a basic example of how Apple uses this process. The five components of supply chain management according to Business Fundamentals are plan, source, make, deliver, and return (2015). Planning involves figuring out what inputs Apple would need to make their products. For instance, they would need human resources to develop and make the products, the raw materials that make up their products, plants and equipment for production, time to manufacture, information and/or knowledge about the product, and finances to make everything possible. These are the different categories of input according to the video “Operations Process: Inputs, Transformations, Outputs,” (2013). Apple needs a strong supply chain in order to either produce or supply these necessary inputs for the transformation process to occur. After gathering these resources from different regions, including the United States, China, and various European countries, the Apple takes and transforms them from inputs to outputs. This would include taking the raw materials and information and assembling...
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...The Apple Supply Chain: The Best in the World? by Steve Banker July 2nd, 2012 Many supply chain professionals consider Apple’s supply chain to be the best in the world. I don’t. The reasoning appears to be that since Apple is one of the fastest growing and most profitable companies in the world, it must surely have one of the best supply chains too. This is a “halo effect” fallacy. Apple is the best in the world at innovative product development. Because the company develops hardware, software, and associated digital services—rather than just focusing on one dimension—it can provide an unmatched user experience. This allows Apple to capture high margins from its products and services. But by my definition, product development is not supply chain management; procurement, manufacturing, and logistics are. That said, Apple has a fascinating supply chain that is very different from traditional supply chains. This supply chain comes with pre-built advantages and disadvantages. On the advantage side, demand management is easier. Apple doesn’t have to get the demand forecast for a new product right. As long as it underestimates demand for a hot new product, Apple will have loyal customers clamoring for the new devices and willing to wait. In fact, the projected backlog leads customers to line up for hours before stores open to buy a new product. This helps to create marketing buzz. Because Apple has become so large, it has procurement advantages smaller rivals can’t match....
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... Option 7:Research Assignment for Operation Management Understanding Apple Company’s value chain This main purpose for this article is to analyze Apple Company’s value chain. From this article, some professional knowledge about value chain in operation management can be learned. And the analyze will be deeply discussed in operation structure. In the textbook, operation structure is defined as the configurations of resources in the value chain including elements of suppliers, factories, distributors, sales offices, design and so on. (Collier and Evans, OM) The following articles will analyze specifically how these elements are operated in Apple Company from the view of Value chain style and value chain model. We can not deny that Apple Company is familiar with everybody in the modern society. In 1976, Apple Company was set up by selling computers. They expanded their business to other industries especially in music player and phone during the development of the company in last 11 years. (Apple company) Nowadays, Apple is the dominant marketing leaders in each field they joined in. The most significant factor of these excellent performances is the attitude to the value chain management. The obvious proof for this conclusion is the last sentence of the article as follow: Apple plans to double spending on its supply chain, to $7.1 billion, continuing its focus on streamlining and...
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...“An Apple a Day, Keeps Supply Chain Robust Another Day!” In their article, “Apples Supply-Chain Secret? Hoard Lasers,” Adam Satariano and Peter Burrows introduce us to several key attainments that Apple has been able to incorporate into their structure. Along with design and “buy or make” scenarios, Apple’s innovative and successful Supply Chain Management and Operational Divisions have leapt well above those of other companies. Satariano and Burrows also share with their audience the “front-runner” position that Apple took 4 years ago in Supply Chain Management. Coupled with partnering for innovation and the virtually unlimited capital that Apple has at their fingertips, gaining supplier respect and loyalty, they have them at their disposal. Meaning, with the exuberant and vast numbers of volume procured from these suppliers, Apple stands at the front of the line when it comes to product needed from any supplier. Their article begins with the design factor and “making the impossible, possible.” Utilizing its Supply Chain Management team, coupled with manufacturing and materials experts, Apple was confronted with what they deemed a critical design and manufacturing dilemma. Going on the old adage, “two heads are better than one,” they realized that this philosophy can be applied when attempting to resolve and provide innovation to their design barrier. Adding the new feature to MacBook’s, Trackpads, and their wireless keyboards initially proved to be a challenge. Posed with...
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...procurement…………………………………………………………..5 2. Strategic sourcing………………………………………………………………….5 3. Supplier integration……………………………………………………………….6 4. Enterprise spend management……………………………………………………6 5. Cross-industry benchmarking…………………………………………………….7 6. E – Procurement…………………………………………………………………...7 Advantages of Apple’s procurement……………………………………………………..8 Disadvantages of Apple’s Procurement…………………………………………………..9 Conclusion…………………………………………………………………………………10 Introduction: When Apple design guru Jony Ive wanted a new feature for the next MacBook: a small dot of green light above the screen, shining through the computer’s aluminum casing to indicate when its camera was on, the problem? It’s physically impossible to shine light through metal. Apple discovered it could use a customized laser to poke holes in the aluminum small enough to be nearly invisible to the human eye but big enough to let light through. Applying that solution at massive volume was a different matter. Apple needed lasers, and lots of them. Most of Apple’s customers have probably never given that green light a second thought, but its creation speaks to a massive competitive advantage for Apple: Operations. This is the world of manufacturing, procurement, and logistics in which the new chief executive officer, Tim Cook, excelled, earning him the trust of Steve Jobs. What Apple learned is that for a very profitable business, you need to have 3 things perfected: 1. Low Overhead –outsource labor to a country with very...
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...ENHANCING STUDENT EMPLOYABILITY: Higher Education and Workforce Development Ninth Quality in Higher Education International Seminar in collaboration with ESECT and The Independent. Birmingham 27th-28th January 2005 The Competencies for Next Generation Employability Eamonn McQuade, Deirdre Hogan, John O’Donoghue, Theresa Maguire, Eamonn Murphy. Programme for the University Industry Interface, University of Limerick Conference Theme 3: Working with employers Abstract It is generally accepted that employees will need to broaden their knowledge, skills and competencies through a lifetime of learning if they are to remain employable, and if enterprises are to maintain their competitiveness in a knowledge-based global economy. However, identifying and developing skills and competencies for next generation employability in Ireland is a challenging task. The Programme for University Industry Interface (PUII) is an action research project, established in 2003, to determine the skills and competencies required by Irish Industry and to develop learning models that will facilitate their delivery. This paper presents the outcomes of an action research methodology based on a Community of Practice model (COP), which addressed the issues surrounding competencies for next generation employability. It proposes a competency framework which integrates the four key categories of skills: Business, Technical, Interpersonal, Intrapersonal, and presents a set of recommendations...
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...Apple 1.Supply Management Model Apple gains a massive competitive advantage mainly due to its operational excellence. To abbreviate, it is Apple’s control over the whole supply chain, from designers to suppliers, from logistics to retail stores, that made Apple’s products popular and profitable. Apple’s designers work close to its suppliers and manufacturers, optimizing the old product lines to gain production competence at the very beginning. Apple then makes a great deal investments to suppliers and orders a high volume, so that it can earn stable production and low prices. By aligning with the suppliers, Apple not only gains high profit margin, but also handicap its competitors. As for the logistics, Apple also exerts control over carriers by making massive orders to gain lower cost. Electronic monitors and employees are used to account for every unit. Finally, at retail stores, Apple keeps tracking of the demand by day and adjusts its production accordingly. 2.Strengths and weakness, and potential risks Apple’s strength of the supply management model is rooted in its close alignment with its business strategy. Its creative supply management functions as a drive to its innovation for a decade. The strong control Apple exerts over the supply chain brings it agility from design to retail stores. Meanwhile, Apple earns bargaining power with suppliers by volume. This advantage makes Apple competitive because with a lower price quote from suppliers, it could lower the price...
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...the main objectives to many corporations today is to be well known for their responsible management and ethical performance. Apple is one of the most important companies throughout the world because of its size and their innovative products and services (Sanchez-Barajas, 2012). Nevertheless, innovation is what drives the sector development and the basis for the economic development. Furthermore, Apple has created about 514,000 jobs in 2011, which is an astronomical commitment to the economy (Sanchez-Barajas, 2012). Additionally, because of their business model focusing on outsourcing and their product characteristics, Apple could summarize material issues in two categories: environmental impact and supply chain management (Sanchez-Barajas, 2012). These issues seem to be the basis for understanding Apple’s corporate social responsibility. First, Apple products are designed to eliminate environmental impact, by using less energy consumption, small packages, and recycling methods (Sanchez-Barajas, 2012). However, there are criticisms with the danger of some materials used for IPads or IPhones, and the development of material for production. When it comes to supply chain, Apple’s ethical performance policy aligning with the entire supply chain is very well explained. This goes further than the Foxconn scandal. According to Tyson (2013), “Foxconn, which is a popular Apple contractor for Apple, had terrible working conditions, where employees...
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...1. Explain how Apple achieved business success through the use of information, information technology, and people. Answer - At to begin with, Steve Jobs was pestered that he had missed the MP3 fleeting trend. Occupations was stuck on creating feature altering programming and was ignorant to the MP3experience. Employments took the MP3 sensation data and specialty an arrangement on how Apple could enter the MP3 market. Occupations' methodology started by bringing by and large the right individuals to embrace the iPod undertaking including Jeff Robbin from Sound Step and his MP3 programming, an iPod improvement bunch, and an iTunes advancement bunch. Bringing aggregately the right individuals, with the right data, and utilization of innovation permitted Jobs to take the iPod. 2. Describe the types of information employees at an Apple store require and compare it to the types of information the executives at Apple’s corporate headquarters require. Are there any links between these two types of information? Answer- Staff specialists at an Apple store will gaze at information – what amount is a sure thing, to what extent is an item discounted for, what hours are they on work, when are their days off, and so on. Official at Apple's corporate head office need data – do we have adequate stock to meet request, are costs too high or too low, what is specialist pay per store, where if we build another store, if we close a store, and so forth. Clearly, store laborers use data to carry...
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...(Word Count: 1565) Introduction Apple Inc., the world’s third largest mobile phone maker, ranks in 2013 as the world's “second largest information technology company in terms of revenue” (“Gartner Says Worldwide Sales” 2012). Apple is the world’s “most valuable brand” in the report Best Global Brands produced by Omnicom Group in 2013 (Elliott 2013). For companies as large as Apple, which utilise a wide range of resources and whose influence and power are evident, the society is increasingly demanding these companies to act in a socially responsible manner (Fassin 2012, 87). In the general view, companies are expected to adapt business strategies that can benefit all stakeholders, manifesting an organisational performance that exceeds beyond pure business functions (Harrison and Freeman 1999). One of the predominant theories of organisational administration is stakeholder management, which involves identifying the stakeholders and analysing their diverse demands and interest in developing effective strategies (Davila, Rodriguez-Lluesma, and Elvira 2013, 186). Business organisations that are not considering the interests and demands of their stakeholders encounter detrimental aspects that may cause the demise of the firm, such as declining market share and brand image due to ethical considerations affecting consumers’ brand preferences (Post, Preston, and Sachs 2002, 139). This report will seek to assess the social performance of Apple by delving into how the company manages...
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