INDIVIDUAL ASSIGNMENT
APPLE’S SUPPLY CHAIN MANAGEMENT
Subject: Supply Chain Management
Code: SCM201
Lecturer: NGUYEN HUU HOANG GIAO
Name : Vu Thi Quynh Trang
Class: IB1806
MSSV: SS171313
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TABLE OF CONTENTS
I.INTRODUCTION…………………………………………………………3
II. APPLE’S OVERVIEW SUPPLY CHAIN:
1. Overview:............………………………………………………….… 4
2. Apple’s Development Goals…………..……………………………..…4
3. Apple’s Supply Chain Models…………………………………….……5
4. Strategy and Tactic:………………….……………………………..….7
III.APPLE SUPPLY CHAIN’S PRO AND CONS:
1.Benefits in Supply Chain :………………………..………………..….10
2.Drawback in Supply Chain :………….…………………………….…11
3.How to Improve in Supply Chain:……………………….………….…12
IV.CONCLUSION………………………………………………………….12
VI. REFERENCES…………………………………………………………13
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I. INTRODUCTION
Currently ranked among the top technology companies in the world, Apple Inc. is
well-known for its iPhone, MacBook, and other products. To be more specific, Apple Inc. is a
multinational technological company based in Silicon Valley, Cupertino, California, USA. Its
primary areas of expertise include consumer electronics, software, computers, and internet
services. The company was founded in 1989 and is headquartered there.
The mission, vision, and basic values of Apple are:
The goal of Apple is "Bringing the best user experience to its customers through it
innovative hardware, software, and services" . Our goal is to improve every aspect of
customer experience, from product design to in-store interactions.
"Think Different." Apple has retained its innovative and creative mindset by thinking beyond
the box, consistently launching new goods, progressively expanding its product line, and
adding new features. It honors those who have unorthodox opinions and never give up on
their advancement in modern society. And that's what we want to aim for. It speaks to the
essence of this company, Apple," said Steve Jobs.
– "Inclusion and diversity, education, accessibility, environment, supplier responsibility, and
privacy" is the vision statement of Apple. Pine
The company underscores in this statement its unwavering commitment to delivering
high-quality items to its clientele. A few declaration-related components
This announcement contains a marketing expertise school, innovative partner integration, and
great partner integration.
- Core values: In order to keep its status as a worldwide leader in technology, Apple makes
sure that all of its operations are in line with these principles. Including: supplier
responsibility, privacy, inclusion and diversity, education, accessibility, and the environment
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Product lines for Apple: The company offers a wide range of business goods, including
MacBook computers, iPad tablets, iPhone smartphones, Apple Watch wearables, and
operating systems for iOS and macOS.
II. APPLE’S OVERVIEW SUPPLY CHAIN MANAGEMENT
1. Overview
Apple produces and distributes its products through a sophisticated and multifaceted supply
chain. It is a global network of manufacturers, distributors, and suppliers that collaborate to
guarantee prompt and effective delivery of Apple products to customers.
Purchasing raw materials is the first step in Apple's supply chain. Apple sources the parts
required to make its products from suppliers all over the world. Upon arrival at Apple's
production facilities, these components are combined to create final products.
The items are transported to Apple distribution locations after they have been assembled.
Products are packaged and transported from here to retail locations of Apple, internet
retailers, and other merchants. Additionally, Apple collaborates with other logistics
companies to guarantee timely and effective product delivery to clients.
Apple has a strong quality assurance procedure in place to guarantee that all of its products
live up to the company's high expectations. This entails thorough testing of the components
and final goods in addition to monitoring the production procedure.
2. Apple’s Development Goals
Apple's strategic objectives are to lead the technology industry and offer the finest goods and
services to consumers. Apple prioritizes the following elements in order to accomplish this
goal:
● Innovation: Attempts to develop novel goods or services that satisfy consumer
demands.
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● Quality: Our commitment to providing high-quality goods and services never wavers.
● Design: Apple is well-known for the opulent and chic looks of its goods.
● Brand: Among the world's most valuable tech brands.
● Produce exceptional goods and services: with the intention of creating exceptional
goods and services with an emphasis on experience, design, and performance.
● Build a robust ecology Construct an ecosystem of goods and services to make things
easier for customers and foster a sense of loyalty.
Apple's strategic objectives are to lead the technology industry and offer the finest goods and
services to consumers. Apple prioritizes the following elements in order to accomplish this
goal:
Apple's target market consists of well-off individuals who enjoy technology and desire to
acquire premium goods.
Apple's target market is worldwide, and the company has a significant global footprint thanks
to its network of retail locations and after-sales support in numerous nations. Nonetheless,
Apple concentrates and makes significant investments on a few key markets, which are
high-income nations like the US, China, Canada, India, Japan, and so on.
The core tenets of Apple's business strategy are innovation, exquisite design, and superior
user experience. The company aims to develop goods and services that assist in satisfying
consumer demands and altering how consumers engage with technology.
Apple's goal is to become the most innovative, high-quality, design, and user-friendly
technology firm in the world. They have a network of retail locations and after-sales support
in numerous nations, with a focus on providing global customer service. With market
segmentation based on client criteria like young, hipsters who adore cutting-edge technology,
business owners, and entrepreneurs,...
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3. Apple’s Supply Chain Model
The integration of departmental activities from supply chain management departments such
as marketing, new product research and development (R&D), and others is a typical New
Product Development Process (NPD). By cooperating with other companies and obtaining
licenses, Apple expedites the release of new products. In essence, the entire procedure is the
same as it is in other sectors. An even more noteworthy element is that Apple Inc. has paid
several suppliers in advance to guarantee that crucial materials would always be available
when needed.
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Purchasing raw components from numerous suppliers and transporting them to the assembly
plant in China is Apple's method of supplying its products. For customers buying from the
Apple Online Store, the assembler will then mail the item straight to them (via UPS or
FedEx). Product supply for additional channels of distribution, including network carriers,
distributors, merchants, retail stores, and direct sales representatives, will come from Apple
Inc.'s Elk Grove, California headquarters. Customers can return products to specialist
recycling facilities or Apple stores nearby when their product's life cycle is over.
4. Strategy and Tactics
Apple has employed a number of techniques and methods to establish a supply chain that
ensures effective manufacturing and delivery while preserving a competitive edge.
Vertical integration
This is one more important feature that distinguishes Apple from its competitors. Apple has
exclusive control over almost every stage of the product development and production
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process. Apple's vertical integration allows it to maintain strict control over innovation,
quality, and production advancement, from developing its own microchips (Apple Silicon) to
managing its own stores.
Combining its expertise in software, hardware, and design with shrewd acquisitions, the
company has built an ecosystem that customers find difficult to abandon.
Just-in-Time Inventory Management
Apple doesn't keep excess stock on hand. Rather, it places orders for parts and supplies only
as needed, saving money on transportation and cutting down on waste to expedite delivery.
By using this strategy, Apple products are also guaranteed to constantly have the newest parts
and technologies. Apple has streamlined its production process by utilizing automation and
robotics.
Apple maintains a minimal inventory by utilizing just-in-time (JIT) inventory management.
Bằng cách sử dụng phương pháp quản lý hàng tồn kho đúng lúc (JIT) Apple luôn giữ hàng
tồn kho của mình gọn gàng.
Supplier Relationships
Building long-term partnerships with its suppliers is very important to Apple. These suppliers
must go through a rigorous procedure wherein their potential is assessed based on three key
factors: meeting quality requirements, being cost-effective, and being environmentally
sustainable. These connections are based on mutual respect, trust, and common values. In
addition, Apple stipulates that its suppliers must abide by its Supplier Code of Conduct,
which sets forth the standards for moral and responsible corporate conduct.
Even though Apple primarily relies on its primary suppliers, it also diversifies its supply
chain to minimize reliance on any one source and maintain supply chain flexibility and
continuity. The company guarantees that its goods satisfy the highest standards of quality and
dependability through a strict selection and management process for suppliers.
Demand Forecasting
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Apple has made investments in machine learning and artificial intelligence, which use
sophisticated analytics and data to forecast customer demand with accuracy. With the use of
this predictive model, Apple is able to efficiently manage its supply chain and guarantee that
its products are accessible when and where customers need them. For instance, the release of
new iPhone models is carefully scheduled to satisfy customer demand without going
overboard.
Global Manufacturing
With manufacturing partners located in nations like China, Taiwan, and South Korea, Apple's
supply chain is global. With its global reach, Apple is able to maximize production capacity,
reduce supply chain risks, and leverage the knowledge and resources of many locations.
Apple has established a strong logistics network that enables it to send goods to customers in
a timely and effective manner.
Retail Integration
An essential component of Apple's supply chain strategy is its retail locations. In addition to
being sales locations, they also display Apple goods and offer customer service. With the help
of this retail connection, Apple is able to manage the entire customer experience, providing
customers with a tailored shopping trip that runs smoothly from product discovery to
purchase.
Advanced Technology Adoption
In order to improve supply chain operations, Apple has implemented a number of
cutting-edge technologies. One such technology is advanced analytics, which allows Apple to
monitor supplier performance and spot possible issues before they become serious ones by
using data from its suppliers. Apple uses predictive analytics as well in order to forecast
client demand and modify the supply chain.
Artificial intelligence (AI)-powered robots are used to automate some processes, like sorting
and packing products, which helps save labor costs and increase performance. AI is being
integrated into supply chain operations.
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Blockchain technology has been implemented by Apple to enhance supply chain operations'
security and transparency. With the use of blockchain technology, Apple is able to monitor
the flow of goods from supplier to client, guaranteeing that the best possible product is
supplied on schedule. Blockchain technology also lessens the possibility of fraud and
counterfeiting.
III. APPLE SUPPLY CHAIN’S PROS AND CONS
1. Benefits in supply chain
Creating a global supply chain gives you access to a wide range of talent, resources, and
markets. Transportation expenses, production times, and geopolitical risks are all decreased
by this regional variety. When Apple delivers its items to clients in a timely and economical
manner, they remain satisfied with their purchase and are likely to make other purchases from
the company.
The corporation gains a lot of customers by creating an Apple environment where all goods
have ties and conversions, storing information quickly and efficiently, and using services at
retail locations. Loyalty facilitates smoother demand management. Apple has a number of
customers who are eager to get their hands on new products and are prepared to wait for them
when a new product is launched without a huge inventory. In fact, a lot of buyers are already
in line even though the product hasn't been introduced yet.
With a number of suppliers, Apple prioritizes developing enduring bonds based on mutual
respect, cooperation, and common objectives. These connections support accessibility to
cutting-edge technologies, reactivity, and dependability. Apple maintains a plentiful supply
chain by collaborating closely with suppliers to prioritize manufacturing capacity, get
favorable prices, and work together on product innovation. Long-term collaboration also
fosters harmony between the two parties, which speeds up and improves the effectiveness of
research, development, and production while guaranteeing product quality and lowering the
possibility of defective or poorly designed goods that require a lengthy repair period.
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2. Drawbacks in supply chain
Copyright issue: Due to their excellent features, Apple goods are imitated all over the world.
Numerous tiny phone producers steal their features and designs, then resell the goods for
extremely low costs. Due to these issues, Apple filed litigation against a number of
businesses.
Over-dependence on important suppliers exposes one to disruption. The process of getting
products to users will be subject to any issues with suppliers, such as production delays or
poor product quality. China is currently home to Apple's primary assembly plant, making it a
crucial location for the company. However, the Chinese government is increasingly enforcing
greater oversight, which may have an impact on shipments and slow down or even stop
Apple's supply chain.
The world economy can have an impact on a corporation. For instance, during the COVID-19
pandemic, Apple's primary manufacturing facilities and suppliers were located in China, the
virus's epicenter. When we shut down and the nation went into lockdown, the country
suffered greatly, which precipitated a sharp decline in share prices.
Global supply networks are complicated and full with dangers. To transport out-of-stock
items, a network of suppliers, manufacturing sites, warehouses, and distribution channels
must be established. This calls for significant management resources, efficient coordination,
and consistent communication.
The creation of new items like the iPad, Mac, and iPhone will seldom ever lessen consumer
demand for future developments in products.
3. How to improve supply chain
Apple Inc. must exercise caution while defending its core product innovations and design
patents against rivals. Build and preserve a solid rapport with suppliers by creating open lines
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of communication to encourage collaboration and mutual trust. Create proactive backup plans
and keep an eye on supplier and assembly facility performance and quality to address risks as
soon as feasible before items are delivered to customers. Anticipate consumer demand to
prevent wastage of raw materials and excess inventory. Apple must simultaneously uphold
labor laws, stimulate moral behavior and environmental conservation, support development,
and safeguard the jobs of those who work in its supply chain.
IV. CONCLUSION
One of the main factors contributing to Apple Inc.'s success as a technology company
worldwide is its supply chain management. The business has created a distinctive supply
chain management strategy that aids to preserve its competitiveness in the international
market. Apple prioritizes streamlining the customer experience, increasing productivity, and
using technology to spur innovation in its supply chain strategy. The management of Apple's
supply chain must prioritize efficiency, sustainability, and customer service. Apple plans to
decrease packaging waste and utilize renewable energy in the future. Apple needs to keep
spending money on renewable energy, cutting emissions, and making gadgets using
sustainable materials.
V. REFERENCE
Apple Business Strategy: A Detailed Company Analysis GreyB
https://www.greyb.com/blog/apple-business-strategy/
Unveiling the Excellence: Apple's Supply Chain Strategy Gohil
https://www.linkedin.com/pulse/unveiling-excellence-apples-supply-chain-strategy-dhruman-
gohil#:~:text=From%20designing%20its%20own%20microchips,%2C%20innovation%2C%
20and%20production%20timelines.&text=Apple%20keeps%20its%20inventory%20lean,(JI
T)%20inventory%20management%20approach.
An Insight Into Apple's Supply Chain Strategy: A Comprehensive ...
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https://dfreight.org/blog/an-insight-into-apples-supply-chain-strategy/
Apple's business strategy 2024: Decoding the success...
https://1office.vn/chien-luoc-kinh-doanh-cua-apple
Apple Executive Summary Essay by EduBirdie.com
https://edubirdie.com/examples/advantages-and-disadvantages-of-apple-supply-chain/
Case study: Is the Apple Supply Chain really the best...
https://vilas.edu.vn/chuoi-cung-ung-apple.html
Guide to the Apple Supply Chain.
https://www.everythingsupplychain.com/guide-to-the-apple-supply-chain/
Apple INC. Case study solution (pdf) - Course Sidekick
https://www.coursesidekick.com/economics/132141
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