Apple Company Supply Chain Management

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Apple Company Supply Chain Management

Category: Case Study

Subcategory: Logistics

Level: Masters

Pages: 1

Words: 275

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Apple Company Supply Chain Management
Review Apple s supply chain for its iPhone product. What difference set it apart from its competitors?
The operation edge in Apple s production of the iPhone has made it handle large launches for the product without high profit-sapping forms of inventory. Even with the high pricing for its iPhone product, which its rivals have failed to beat, the company has managed to receive a 25% margin on the product. Apple has managed to survive through the rough supply chain road by ensuring a closed ecosystem, where every piece of the iPhone is controlled from its design to retail.
Apple is currently considered the master at its operations, for its iPhone product, and did succeed because they bought most of the machines and suppliers they needed for the product, and this squeezed their competitors out of the equation. This simple supply chain tactic is effective as it ensures low prices for the company products and their overall availability in the market.
When Apple was buying screens for their iPhone product, they bought so many of them, and this made manufacturers busy in supplying them with minimal time to deal with other companies that are Apple’s competitors. The company level of control and efficiency goes beyond to their factories, where electronic monitors are placed in boxes to ensure minimal leaks and all products that are ready shipped in boxes that are discrete. While in their retail stores, Apple can discern their level of demand, and such a facet is important for success.

What are Apple s key advantages in how it manages its supply chain operations? Support with data from the case.
Apple is the best in product development innovations, this is a great advantage to the company, and has ensured its overall success. Apple produces software, hardware and other digital products that they need for their operations, rather than just focusing on one facet, leading to heightened experiences. Secondly, demand management in Apple is easier. The company does not need to have their demand forecast for any new production. Through their loyal customers they are usually able to sell all their new products with ease.
Lastly, the procurement advantages in the company are enormous, and such cannot be matched with any of their competitors. Samsung lost a total of $10 billion in value when Apple decided to make a huge order of flash discs from Elpida. Apple has great price advantages when capturing different components for their products, capital equipment, airfreight capacity and manufacturing capacity.
What are the challenges that Apple faces in the future and what are the implications of those challenges for its supply chain?
Apple is currently facing various challenges that range from their supply chain management to the desire to come up with new ways of dealing with their new models of OS X and iPad, to ensure attractiveness to customers. Further, the company is having issues with different units of their iPhone which are meant to be supplied to different customers around the globe because of serious quality standards during production. There is a need for supply chain management solutions, like reducing on the units and focusing on quality before embarking on normal productions to ensure quality.










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