1. Apple – Supply Chain Management
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2. Apple overview
Apple Inc. was founded by Steve Jobs and Steve Wozniak in 1976.
Apple Computer, Inc., is an American multinational corporation with a focus on
designing and manufacturing consumer electronics and closely related software
products
As of September 2007, the company
operates 194 retail stores in the United
States, and more in the United Kingdom,
Japan, Canada, and Italy
For a variety of reasons, ranging from its
philosophy of comprehensive aesthetic
design to their advertising campaigns,
Apple has engendered a distinct
reputation in the consumer electronics
industry and has cultivated a customer base
that is unusually devoted to the company
and its brand

3. Problems in the supply chain
Delays in production,
distribution etc.
Expensive inventories
Lack of partners’ coordination
Uncertainties in deliveries
Poor demand forecast
Interference with production
Poor quality
Supplier of materials
Supplier of services
Tier 1
Tier 3
Tier 2
Legend
Customer
Distribution center
Manufacturer

4. Supply Chain Management
Main components
Supply Chain Mgmt
Supply Chain Strategy
Logistics Mgmt
Procurement
Information Mgmt
Supply Chain Planning
Assets Mgmt
Suppliers
Manufacturers
Warehouses
Stores
Customers

5. Apple’s problems in Supply Chain Management
The outsourcing and offshoring of manufacturing to emerging and developing countries has resulted in challenges
environmental and
social standards in these countries
direct reputational and financial impacts
The biggest supply chain challenge is volatility caused by increased market dynamics related to demand. This requires
advanced planning capabilities
early insights and guidance on effective responses
that maximize the profitability of a company’s portfolio
1. And to complicate matters further, "The scope of environmental and social challenges in supply chains has expanded from direct suppliers to further up the supply chain involving sub-suppliers and raw material suppliers.“

6. Apple’s supply chain judged best in world again
Best supply chain practices
A report by AMR Research has named
Apple as the company with best supply
chain practices in the world
Apple beats competitors at inventory
turn over
Company
Days of inventory
Apple
5 days
Dell
7 days
Lenovo
15 days HP
32 days
Intel
89 days
D-Link
131 days
Source: Gartner Inc.

7. Apple’s Supply Chain secret?
Unified strategy
Every part of their business is aligned around that strategy.
Production
More than $80 billion in cash and investments.
Apple supplier’s life
Lucrative - high volumes
Painful - the strings attached.
Many key suppliers
They keep two weeks of inventory within a mile of Apple’s assembly plants in Asia.
Factories work overtime and they are being watched
To track efficiency and ensure pre-launch secrecy, Apple places electronic monitors in some boxes of parts that allow observers in Cupertino to track them through Chinese factories, to
discourage leaks.
3. When Apple asks for a price quote, it demands a detailed accounting of how the manufacturer arrived at the quote, including its estimates for material and labor costs, and its own projected profit.

8. Technology in SC
The internet can be very effective communication enhancers
Software
Demand forecasting tools
Planning tools
Allow all SC members to coordinate their activities and adjust their production levels
Review past performance
Monitor current performance
Predict future production levels of products
The secret behind Apple’s success
Company’s ability to bring together two sides of the supply chain (digital and physical) efficiently and at increasingly low cost

9. Digital supply chain Definition
A new media term that encompasses the process of the delivery of digital media, be it music or video, by electronic means from the point of origin (content provider) to destination (consumer)

10. Digital supply chain Main processes
The main processes of a digital supply chain are as follows

11. Bottom line
 Apple plans to double spending on its supply chain, to $7.1 billion, continuing its focus on streamlining and controlling manufacturing.