Introduction

Along with the change in times, cellphone is widely using and its can make the people contact from distance, so nowadays people can’t live without it. It can see the great improvement in technology from the traditional mobile phones transfer into the smart phones. Most cell phone already have complete feature as a result, designer are hard to design innovative feature in the phone, it will lead to the cost of product are high. Company only can make the product more accurate to attract customers. But the cost is more expensive than research new function. Therefore, company should decrease the cost from other parts. The modern focus is on total cost and the development of relationships between buyers and sellers. As a result, procurement has been elevated to a strategic activity in many organizations.

This study aims to understand how Apple Inc. use procurement to decrease their producing cost. On the other hand, it will show that procurement strategy has played an important role in every company. Nowadays, technology is better than before. As a result, Apple need to reduce cost on other departs, so Apple chooses outsourcing. Apple Inc. not only chooses outsourcing to save time to supply more products to consumers of the world but also save labor cost to increase profit.

This essay will discussed the following points
1. Procurement definition and management
2. Procurement Strategy
3. Apple’s outsourcing partner - Foxconn

Procurement Definition and Management

Every organization, whether it is a manufacturer, wholesaler, or retailer, buys materials, services, and supplies to support operations. Historically, purchasing has been perceived as a clerical or low-level managerial activity charged with responsibility to execute and process orders initiated elsewhere in the organization. The traditional view of purchasing has changed