APPLE (TQM) Total Quality Management (TQM) Not only physical attributes of a product are related by Total quality

management, customer satisfaction and the levels of service provided are also related. In the customer point of view it is not that the product should have desired feature, in addition to that the product should be available in a suitable manner and on time. Hence key importance of logistics management is total quality. Total Quality Management involves all the internal and external members to the supply chain to meet all the customer requirements at the lowest achievable cost. Apple Inc can implement Total Quality Management with the commitment and support from the top management by maintaining a customer centric focus in all of its services, products and processes. 4.2 Quick Response (QR) To improve the active logistics strategy Apple Inc can adopt Quick Response approach too. The distribution process between the organisation and the suppliers is focused in Quick Response. By using this approach Apple Inc can improve the speed of inventory replacement through closely understanding and monitoring the customer buying patters. To implement the QR Apple Inc has to share its sales details with suppliers for specific products across its supply chain to assist the availability of the right level inventory when and where it is required. 4.3 Agile Supply Chain Responding to the end customer demands is focused in Agile Supply Chain, hence it is customer responsive. These supply chains are demand driven not forecast drive. These supply chains captures the demand data directly and benefit from understanding the variations in demand and these are fast supply chains in terms of responding to the demands of market. Apple Inc can improve its slow activities and respond quickly to its dynamic customer demands by adopting Agile Supply Chain. 4.4 Lean Thinking Lean thinking emphasises on operating with minimum wastes in the supply chain. Lean identifies seven wastes namely

it can be more efficient in terms of cost effective and better quality to the customer. Here the reason for the Apple’s current strategic position is explained using different strategic management concepts for ease understanding of their performance in the context of supply chain. This permits the supplier to track product sales and manage inventory levels. Nintendo. Rhapsody. hence it can deliver the excepted level of customer service. unnecessary movements within the warehouse the waste of defects. 4. By adopting Vendor Managed Inventory Apple Inc can maintain the availability of stock at all times and refill the inventory with no delays.       the waste of overproduction. Sony. producing defective products By improving lean management process Apple Inc has. producing too much the waste of waiting. In VMI information sharing is crucial. HP.5 Vendor Managed Inventory (VMI) Levels of inventory are monitored by the supplier in Vendor Managed Inventory. hence whenever refill is required at stock levels supplier will do it automatically. not keeping too much of inventory the waste of unnecessary motion. The figure below illustrates the product life cycle and . Blackberry. to have effective information sharing. not utilising and resources properly the waste of transporting. DELL. I-phones to Macbook and extending it to their software like I-tunes and games which are at reasonable prices. the computer systems of supplier and retailer should be interconnected. have become the market leader in their industry by supplying price worthy products which possess high value in terms of their genius technological design from their Ipods. moving goods between processes the waste of inappropriate processing. It is very clear that the company which has adapted or improved wonderful supply chain will mostly successful in their industry. The Apple is known for their innovation in the technology and so do is supply chain. Samsung and LG. Nokia. The main competitors in their industry are Microsoft. Apple – Strategic Position: The Apple Inc . incapable of meeting quality standards the waste of unnecessary inventory.

But their product range is less when compared to Apple. Europe. etc. optical drives etc. At this stage they even concentrate on how they can extend their business in other fields. processors. the customers feel that its value for money. they are in the growth stage of the product life cycle by showing their steady growth in their sales. Then their products are distributed to the end users or the retailers by means of online stores. Strategic Group Analysis: As per the figure given below. India. the apple can become the market leader in their industry. distributors. But the price that they offer their product is very high when compared to the above mentioned competitors because their product worth is very high due to their excellent technology offered by them to the industry. By offering various range of products at the reasonable price which. We infer from the below figure that apple is in the shakeout stage of its life cycle where their concentration mainly in improving the purchase of their products.. HP. They also possess well-trained employees who are trained to be the best in customer services and orientation. To achieve this they need to shape their supply chain in such a way that it should be more customers focused and the process of making it should be more cost effective. Their products are distributed to various places where they have followed a segmented distribution of their products. When it comes to technology. In other context of Apple in their PC business. Their purchasing phase have different segments in which few of their items are outsourced like. The companies like Microsoft and Tulip Ego are performing better than Apple because of appropriate. suitable and excellent supply chain followed by them. They also do concentrate on price cutting and increase in productivity to enhance their business with high productivity. the Apple is the Market leaders in their industry offering various ranges of products with their innovative technologies. it is clear that Apple’s product line in the industry is comparatively low than Dell. . and Samsung. The value chain of Apple which also indicates the elements of its supply chain which explained in the earlier segment states that the Apple has very good corporate management and geographical segmentation in to various countries like USA. direct sellers and Third party sellers where the products will be distributed. retail stores. Japan.the position of apple in that life cycle. In this stage they offer tuff business to the weak competitors and it may results in shakeout of their competitors’ business.

To make sure steadiness in working across all the functions of the business. Apple Inc uses computer assisted information technologies preface of creative quality tools and techniques while ensuring training employees in new skills. is in its differentiation phase by offering highly technological products to its customers which are innovative too. cost and timeliness. they are the cost leaders in the industry and the Microsoft lies partially in cost leadership and partially in differentiation. . quality. Apple Inc ensures the steadiness in delivery of the product in line with design specifications and quality objectives in launch process. thereby they may migrate to the cost leadership without compensating their technologically innovative products. To attain high levels in process design and assurance. Apple can concentrate on their supply chain and improve its processes internally and externally. To meet up the customer demands and to go beyond customer demands. Apple Inc uses integrated team work in every stage of project and also to ensure the improve programme objectives for. When it refers to the Dell and HP. It defines that Apple Inc .Porters Generic Strategy for Apple: The below figure illustrates the competitive advantage of Apple over its other competitors. Apple Inc uses the advance design concepts and product engineering in highly competitive world-wide markets while concentrating on profitable expansion for the business. manufacturing and quality.

PEST analysis is done by analysing the Technological. Economic Factors  Apple Inc have to notice the fluctuations in currency rates throughout the world. Hence low . it is necessary to pay close notice to the political climate and also to the regulations and laws in all the countries functions and also to pay attention to regional governing bodies.  Decrease in cost of house ownership is due to lower interest rates. commerce.  Certain environmental policies issued by the government impose the company to use specific kind of packing material and labelling for certain products. This has considerable impact on packing cost of goods. PEST Analysis The developments in the external environment which affect the external organisation are identified using PEST analysis. Social and Political aspects of the organisation. Australia and the Middle East. This has significant impact on the company’s warehouse management policy which sequentially affects the level of customer service provided by Apple Inc . Laws governing growth.  Apple Inc logistics strategy can be affected by any increase in fuel prices as the increase in fuel prices will directly affect the cost of distribution and transportation which result in decrease in net profit of the company. local and national influence. Currency shifts can associate to lower or higher demands for Apple Inc which in turn affect profitability. trade and investment are reliant on the local government as well as how successful economies and market will be due to regional. which gives the customers a chance to expend on alternatives like home improvement. Political Factors  As Apple Inc functions in multiple countries across Europe.Apple Inc with the range of world class supplier base and their involvement all through the project life time helps to attain the world class standards of quality and delivery. Africa. Asia. Economical.  The planning and congestion restrictions forced by the government on construction of warehouses and stores considerably affect the choice of site and the location for the warehouses and stores.

 The development of technology has brought drastic changes in the products in the DIY market. Goods are ordered by the customers over the internet and the company’s supply chain has to deal with the additional burden of processing the order. This has a major effect on all the factors of logistics strategy and the company has to re-align its supply chain in order to deliver the expected level of customer service. performance as most of the customers it has fall in the young age category. This also compels the company to alter its existing logistics strategy. A decrease in their population would mean a decrease in the sales of the company which again would affect its decisions from sourcing to distribution.. .  In the current years there has been a turn down in the population of the young age group and this would critically affect Apple Inc . As customer demand is increasing for these specialised products the company either has to pressurise its existing suppliers or look for new suppliers around the world in order to procure these specialised and unique goods to cater to its customer needs.interest rates trigger the demand for home improvement goods and the ripples of this will be visible through the entire supply chain. notifying the store/warehouse about the order and then deliver it to the door step of the customer. Social Factors  Now-a-days there is a raise in consumer awareness. Customers are demanding for superior quality goods at extremely competitive prices and as a result the company is in constant pressure to supply quality and reliable goods at greatly cheaper prices. Technological Factors  The rapid expansion of e-shopping has significantly boosted the sales of Apple Inc .