We decided to analyze the supply chain strategy of a company that has consistently been on the top ranks of gartners supply chain top 25 ranking apple inc. Since apple s release of the iphone in 2007, over one billion devices have been sold around the world. Apple said it sold its 2 billionth ios device this year. 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. Its top 200 suppliers include component providers and others that represented at least 97% of its procurement expenditure in 2016 for materials, manufacturing and assembly. Apple supply chain best practices include data synchronization between the central warehouse and its own stores and customers, and outsourcing manufacturing and as a result reducing the manufacturing cycle time. Uses centralized control to tightly monitor and coordinate their pricing across different international markets. When the auto shop gave you the estimate, it included a charge for. Supply chain strategies 111 supply chain planning encompasses a comprehensive perspective of business operations suppliers supplier supply chain strategy and network design regional and global collaboration organisational design crossenterprise supply demand planning supply chain performance measurement. To make this many devices requires an incredibly complex and farreaching supply chain. Supply chain pain points today, supply chain management process, supply chain planning and supply chain execution, supply chain analytics. Apple eventually developed its own locationtracking software, but skyhook never regretted its role in apples supply chain. Intelligent professionals are needed to manage, advise and innovate to ensure the companys success and race to the finish line. Pdf apples supply chain strategy harshaka hettiarachchi.
An analyst for a money management firm is studying apple inc. Changing supply chain strategy will make apple even more efficient and effective. Put your supply chain strategy on the same schedule as the rest of your planning. Its use of a smart supply chain strategy has reduced its need for storage and sped up. Apple has built a closed ecosystem, with the company having control over nearly every activity in the supply chain from design to retail. We have 6 pillars to help us propel forward with clarity. According to the research firm, gartner group, it had the worlds best supply chain, ranking ahead of companies such as walmart, amazon and inditex. Overall, tim cook has overseen a development in apple s supply chain which has seen it become as efficient as its ever been. Focused supply chain one thing that differentiates apples supply chain from other technology producers is the fact that apple offers only a small variety of products.
Applea supply chain model of excellence supply and demand. Apple s supply chain works so well because its been built on longterm relationships that work for both apple and its suppliers. Download your free copy of datax guide to gaming analytics. Apple supply chain braces for disruption from coronavirus. Based on the ranking from gartner, apple is the top of supply chain excellence, followed by mcdonald and amazon. Apple products are made with revolutionary precision to perform exactly as promised. Moreover, the report contains analyses of apple leadership, business strategy. The strategy specifies how to satisfy customers, how to grow the business, how to compete. Swot is an acronym for strengths, weaknesses, opportunities and threats related to organizations. Those who are unable to follow are removed from the supply chain. Uses strategic alliances and joint ventures to enter markets.
We believe it is critical to drive profit and growth while using our scale to create positive change. The global supply chain 89 downloads 5 pages 1,146 words add in library click this icon and make it bookmark in your library to refer it later. And because customers all over the world eagerly await that experience, we built a supply chain thats equally revolutionary. Apple s business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software, and services to provide its customers new products. One key aspect of apples supply chain is its use of multiple suppliers for the same component. Jan 28, 2020 apple has roughly 10,000 direct employees in china, across its retail and corporate entities. Taxation labour and material costs have been, for many multinationals, the initial driver of supply chain considerations in china. Dec 01, 2017 created using powtoon free sign up at youtube create animated videos and animated presentations for free. Hettiarachchi and others published apples supply chain strategy find, read and cite all the research you need. Apple, nokia, dell tops among global supply chains amr researchs annual list of the top 25 supply chains puts apple at the top for meeting iphone demand. It was michael e porter of the harvard business school who introduced the concept of value chain. Apple inc report contains a full version of apple value chain analysis.
Apples supply chain from the factory floor to retail stores. The supply chain judging from the size of the asrs system the supply chain had significant problems. Apple, nokia, dell tops among global supply chains. This article highlights the production and innovation strategy, marketing and branding strategy, and manufacturing and supply chain strategies because they are very prominent and critical in. Supply chain planning at apple inc is the classic example of the new product development process npd. Jul 10, 2019 apple has a very large supply chain and when it comes to obtaining raw material, it has several options before it. Supply chain analysis apples products and components are manufactured by a number of suppliers around the world. Apple s complex supply chain is attributed to the fact that this fortune 500 company has multiple suppliers located in different parts of the world primarily in united states, china, japan and taiwan. Every year, we improve upon the progress we make to protect the people in our supply chain and the planet. Samsungs business model has focused on vertically integrating supply chains and ramping up production volume. Although apples supply chain strategy has been lauded for years, its designed exclusively to benefit apple. 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. Today, apple leads the world in innovation with iphone, ipad, the mac and apple watch. Good luck aligning your supply chain with your corporate strategy.
In 2014 gartner placed apple in a new masters category for demonstrating sustained leadership in their supply chain and defining the very notion of a solution supply chain, blazing new trails with its demand creation capabilities. So how does apple s supply chain keep up with the high demand and constant pressure to be faster. A year later, cook, a supply chain expert, joined jobs to help reinvent, speed up and simplify the apple supply chain. Recently, for example, gartner, a usbased research and advisory company. Apple has built a closed ecosystem, with the company having control over nearly every activity in the supply chainfrom design to retail.
Apple is well known for being one of the worlds leading design companies but their outsourcing strategy inadvertently created two of their biggest competitors and two of the worlds largest. 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. Supply chain strategy is the supply chain portion of the strategic plan. Progress is made possible by deep partnership with our. In 2018, a total of 1049 supplier assessments were conducted in 45 countries. Apple inc managing a global supply chain hbr store. The following table illustrates apple swot analysis. Apples supply chain is at risk from the coronavirus. Apple has shaken up its supply chain in a way that will likely put more money in the pocket of the worlds largest company by market cap. The company has accomplished serial innovation and outstanding design in terms of its offerings and its business model as well as simultaneous cost leadership, having become more ef. Tim cook, current apple ceo, was brought in by steve jobs to improve the apple supply chain. The investment analyst firm market realist identified brand strength, innovation, supply chain management and premium pricing strategy as key factors in the companys competitive advantage. Supply chain strategy report make the most of supply chain strategy apics point of view strategy.
Join these teams and continue to innovate on an immense scale. Download case study on dells supply chain strategy pdf, scm case studies, dell direct model. Valuable lessons can be learned from the companys supply chain processes, a supply chain ranked by gartner as the number one in the world. 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. Managing returns and reverse logistics sample assignment in operations strategy cover page apple inc managing returns and reverse logistics. Six steps to align supply chain with corporate strategy. Apr 28, 2019 apple inc report contains a full version of apple value chain analysis. Apple has received multiple awards for its supply chain strategy. Apple s three software platforms ios, os x and watchos provide seamless experiences across all apple devices and empower people with breakthrough services including the app store, apple music, apple pay and icloud. Finishing in second place in our sustainable list is the it giants.
Sep 24, 2014 with the aim to build a stable supply chain, multiple suppliers can help apple react faster to problems or disruptions and become more flexible. Apples supply chain attracts criticism for performance but. Although apple is recognized as a global leader in supply chain management, the company has received criticism for its suppliers unethical labor practices. We demonstrate this through a detailed evaluation of apple s physical and content supply chains and its retailing strategy. Unfortunately, the company experienced the death of founder and ceo, steve jobs.
It has outsourced its assembly for economic reasons but has also partnered. The demand of apple product has increased, especially from two large emerging markets, china and india. Nov 22, 2017 a note on the business strategy of apple the aforementioned specific aspects of the business strategy of apple are selected for the purpose of conciseness. Case study on dells supply chain strategy pdf, scm case. Apple works with suppliers in 43 countries and six. 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. Aug 21, 2018 apple eventually developed its own locationtracking software, but skyhook never regretted its role in apples supply chain. A look at apples supply chain management dynamic inventory. Apples supplychain operations have been ranked by research firm gartner as the best in the world. Changing supply chain strategy will make apple even more. Market leadership for a range of products and services. The impact of social media on apple s supply chain. One thing that differentiates apple s supply chain from other technology producers is the fact that apple offers only a small variety of products.
Analysis of the supply chain strategy of apple inc. Bloomberg argue that its lost its mojo, but greenpeace rate the tech giant as a sustainability pioneer. This case study will show you the analysis of apple s supply chain core processes, challenging issues and complexities of its operations. Owning the consumergetting to the core of the apple. Oct 20, 2014 valuable lessons can be learned from the companys supply chain processes, a supply chain ranked by gartner as the number one in the world. Supply chain digital takes a closer look at the companies featured in septembers top ten largest sustainable supply chains worldwide. Strong brand image and a brand value of usd 170 billion 1 solid financial position of the business. Promotes its products worldwide as a standardized product. On apple s conference call the investing public had the chance to hear from the person i believe to be more responsible than any other employee for the creation of apple s chinatou. Case study resources in business strategy and other management education subjects. Unileversconnected for growth supply chain strategy our strategy is our compass to help us navigate towards our purpose united to build a brighter future. For apple and its shareholders, its an unmitigated success. Much of apples recent success is attributed to cook streamlining its supply chain by outsourcing manufacturing and helping the company to.
Apple s supply chain from the factory floor to retail stores. Apple supply chain management is one of the best in the world. But in setting supply chain strategy, youll need to look at three layers of cost. It was the best decision for the company at the time, because now the apple supply chain is considered to be one of the most powerful, efficient models ones in the world. Strategy at apple inc loizos heracleous over the last 15 years, apple inc has revolutionized the. At least 97% of apple s procurement expenditures for materials, manufacturing and assembly of products are finished worldwide in 20. Apples supply chain is a behind the scenes operation that involves a lot of moving parts. Jan 29, 2020 i do believe apple has the redundancy in its supply chainas cook alluded toto handle a shortterm disruption, but not one that lasts, as some have posited into march or april. Apple has made a business strategy of focusing on design and user experience while.
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. 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. Supply chain analysis apple s products and components are manufactured by a number of suppliers around the world. Oct 30, 2017 two recent studies report varying performance levels in apples supply chain. Apr 25, 2016 scm 303 presentation by marissa cantu sondra cuenca michael houang daundrea walker edited by sondra cuenca references. In operations management, the 10 decisions relate to such aspects as product design, quality management, process and capacity design, and location strategy, as well as inventory management. The iphone supply chain supply chain involves organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. In fact, about 20 percent of the us population owns iphones. Addition of a new supplier will provide a greater flexibility and apple can react faster to supply chain disruptions, should they arise. Transforming supply chains in digital content delivery.
In apples 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. Supply chain management can be defined as the management of relationships with all stakeholders, to deliver superior customer value at less cost to the supply chain as a whole. According to the apics dictionary, 14th edition, the strategy of an enterprise identifies how a company will function in its environment. Think about the last time you had your car repaired. Apple revolutionized personal technology with the introduction of the macintosh in 1984.
Supply chain basics even though quality cannot be defined, you know what quality is robert m. In order to do this effective logistics is required i. What is apples competitive advantage in its industry. Its supply chain also has a few million workers manufacturing products like the ipad, iphone and apple. Apple is a master of quantum strategy, which is both unconventional as well as extremely dif. Hettiarachchi and others published apples supply chain strategy find, read and cite all the research you need on researchgate.
This left the company looking for new leadership and direction. Apple set quality standards for its suppliers and work to manage the standard of its suppliers performance. Some people in the blogosphere said that apple s supply chain is not that complicated. The apple supplier list represents 98 percent of procurement expenditures for materials, manufacturing, and assembly of our products worldwide for fiscal year 2018. Yet these lowcost benefits are eroding through a combination of cost.
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