Supply Chain practices of

“Apple"
Mentor:
Dr. Shahzad Ahmad Khan
Assistant Professor

Presented by:

Azhar Jamal
MS Management Sciences

Riphah International University

 Apple
Technology company

Founded April 1, 1976

Steve Jobs
Founders Steve Wozniak
Ronald Wayne

Apple Campus, Cupertino,

Headquarters California, United States

Subsidiaries: Beats Electronics,
Apple Store, FileMaker Inc. etc.
Share Price: $ 156.10
Market capitalization: $ 817.54B
Revenue: $ 215.6 billion (2016)
Computer hardware
Computer software
Consumer electronics
Industry Digital distribution
Fabless Silicon Design
Corporate venture capital
Number of 495 Apple retail stores in 18
locations countries (as of May 2017)
https://www.apple.com
Products
MacBook iPod iPhone iPad Apple Watch Apple TV

Software
MacOS iLife iOS tvOS WatchOS iWork

Services
Apple Pay Online Apple Store Apple Music iCloud iTunes App Store iBooks Store

It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them – Steve Jobs
Competitors
Alphabet Inc Microsoft Samsung
Multinational conglomerate company

Subsidiaries: Google, CapitalG, Subsidiaries: Yammer, Mojang, Subsidiaries: (Its is a subsidiary

Nest Labs, Calico, etc. StorSimple, Xamarin, etc. of Samsung Group).
Revenue: $ 90.27 billion (2016) Revenue: $ 85.32 billion (2016) Revenue: $ 46.99 billion (2016)

Market capitalization: $ 652.67B Market capitalization: $ 521.45B Market capitalization: $ 282.39B

Share Price: $ 955.14 Share Price: $ 68.38 Share Price: $ 1,026

Have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary. – Steve Jobs
 2008 2009 2010 2011

iPhone
2012 2013 2014 2015 2016
Design is not just what it looks like and feels like. Design is how it works – Steve Jobs
Supply Chain Planning
R&D Concept Testing Pre-Launch Launch Quarterly Review

• Manage
• Review inventory
production ramp
Level
issues
• Adjust demand
• Conduct • Provide software
forecast
• Develop new for new products
marketing • Check product
technologies research • Manage material
• Resolve backlogs life cycle status
• Acquire licensing • Conduct product purchase
• Make demand • Update new
on intellectual testing commitments
product
property • Assemble cost • Provide proper forecast up to
150 days. development
• Acquire third data inventory levels
status
party business • Identify potential • Determine
• Monitor current
quality defects launch quantity
sales levels
• Raise orders,
• Monitor
make pre-
component price
payments to
trends
suppliers

Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations – Steve Jobs
Supply Chain Model
Sourcing Manufacturing Warehousing Distribution Return

United States
Intermediate
warehouses via Online Store
UPS / Fedex
China • Warranty
Warehouse Retail Stores Return
Assembly in
facility in • Trade in
China
California Program
Other Asian
• Recycle /
Countries Direct Sales Reuse
Force Program

Europe Wholesalers,
Retailers,
Network Carriers

Be a yardstick of quality. Some people aren't used to an environment where excellence is expected – Steve Jobs
Supply Chain Management
Singapore Taiwan United States China
Samsung: CPU +
Video chips
Infineon: Baseband
Communications Primax Electronics:
Digital Camera Modules
Foxconn International:
Internal circuitry
Entery Industrial: Apple
Connectors Shenzhen:
Assembling
Cambridge Silicon: + Inventory
Bluetooth
Umicron Technology:
circuit board
Catcher Technology:
Casings
Broadcomm: Marvell:
Touch Screen Controls 802.11 Specific Parts
The people who are crazy enough to think they can change the world are the ones who do – Steve Jobs
Supply Chain Management

http://econlife.com/2014/09/globalization-of-the-iphone-6-supply-chain/
Distribution
Process Cycleflow
View Push Model

Supplier
Procurement Cycle

Apple Manufacturer
Manufacturing Cycle
Direct Sales Third Party
Force Wholesalers
Distributer

Replenishment Cycle
Value Added
Online Store Retail Store Retailer
Reseller
Retailer Retailer

Customer Order Cycle

Final Final Final Final Final
Customer Customer Customer Customer Customer Customer

The only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. – Steve Jobs
Achievement / Key highlight
http://www.gartner.com/technology/home.jsp

The best
supply chain in
the world - from
2009 to 2012

Don’t let the noise of others’ opinions drown out your own inner voice– Steve Jobs
 Thank You

I think if you do something and it turns out pretty good, then you should go do something else wonderful, not dwell on it for too
long. Just figure out what’s next– Steve Jobs