Apple Supply Chain Mgmt

Apple’s Logistics and Supply Chain

Introduction

Founder - Steve Jobs and Steve Wozniak founded apple computer inc. in 1976.

Incorporated in 1977

In 2007 named changed to Apple inc.

Vision and Mission

Apple Logo History

Over the next 3-4 years Apple would like to increase their product accessibility (new stores).

Increase their market share by 30%.

Eliminate the need for new products in order to raise sales.

Objective&Goals

Apple's supply chain judged best in world again

A report by AMR Research has named Apple as the company with best supply chain practices in the world for the third year running.

In a feature exploring the secret behind Apple’s success, it was found that company’s ability to bring together two sides of the supply chain (digital and physical) efficiently and at increasingly low cost.

Digital supply chain

is 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).

The main processes of a digital supply chain are as follows:

1.) True on-demand product availability

2.) Ease of use and speed for content search and activation.

3.)Pricing and subscriptions

4.) Quality management built on licensing and refunds

Material Suppliers of iPhone:

Samsung: The Singapore facility manufactures CPU and Video processing chips. Infineon: The Singapore facility manufactures Baseband Communications hardware. Primax Electronics: The Taiwan facility manufactures Digital Camera Modules. Foxconn International: The Taiwan facility manufactures internal circuitry.Entery Industrial: The Taiwan facility manufactures connectors.Cambridge Silicon: The Taiwan facility manufactures bluetooth chipsets.Unicorn Technology: The Taiwan facility manufactures printed circuit boards.

Catcher Technology: The Taiwan facility manufactures stainless metal casings.

Broadcomm: The U.S. based facility builds touch screen controllers.

Marvell: The U.S. based facility builds 802.11 specific parts.

China facility assembles the hardware, holds inventory, and handles the pick, pack, and ship steps of the fulfillment process.

The iconic iPod and iPhone maker took the top spot due to "an intoxicating mix of brilliant industrial design, software interfaces and consumable goods that are purely digital”.

Cost : Reduced inventories Reduced waste Reduced total manufacturing costs

Service: Establishment of a collaborative framework Near real time information flow

Benefits Apple got from its Supply Chain

CHINA -THE CHINA -THE ASSEMBLY HUB OF ASSEMBLY HUB OF APPLEAPPLE

SIMPLICITY: Technical complexity hidden behind slick and intuitive user interface gives seamless experience.

QUALITY: Thanks to hardware and software tight integration Apple’s product offers great quality.

INNOVATION: Apple does not depend on its suppliers’ technical breakthroughs. It can innovate on hardware and software at its own pace.

Competitive Advantage