Apples Supply Chain Diagram Sheila Cormier

Sheila Cormier September 23, 2019 Page |1
Apple’s supply chain strategy is legendary and has won many awards since Tim Cook took over.
Apple Inc's supply chain planning is the excellent case of the New Product Development Process
(NPD). It is the joining of R&D, Marketing, and different capacities under inventory network the
board. From the above realistic, Apple Inc quickens the new item presentation by securing the
authorizing and outsider organizations. The entire procedure looks fundamentally the same as
that of different ventures. The interesting point is that Apple Inc must make the prepayments to
some suppliers to secure the strategic raw materials.
The Supply Chain Map above is the best approach to express a broad framework from the
purposes of root to purposes of utilization. Data from the yearly report is likewise used to create
the Apple Supply Chain Map.
Apple Inc buys crude materials from different worldwide sources. At that point get them sent to
an amassing plant in China. From that point, the constructing agent will dispatch items
straightforwardly to shoppers (using UPS/FedEx) for the individuals who purchase from Apple's
Online Store. For other dissemination channels, for example, retail locations, direct deals, and
different wholesalers, Apple Inc will keep items in Elk Grove, California (area of focal
stockroom and call focus) and supply items from that point. At the end of a product's life, a
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customer can send products back to the nearest Apple Stores or dedicated recycling facilities.
Apple supply chain tries to follow the lean manufacturing concept as much as possible.
Challenges in Apple's Supply Chain
Many demonstrate that the life of Apple Inc is open by using its arrangement control. Apple
Supply Chain has high hazards. There are numerous difficulties to survive, for instance:
 The worldwide economy could influence the Company.
 Some re-venders may likewise disseminate items from contending makers.
 Inventories can wind up outdated or surpass the foreseen interest.
 Some parts right now got from single or constrained sources.- Some custom components
are not familiar to the rest of the industry.
 The ability to obtain components in enough quantities is essential.
 Supply chain disruption, such as natural and human-made disasters can be severe.
 The organization relies upon strategic administrations given by re-appropriating
accomplices.
 The organization likewise depends on its accomplices to cling to the provider set of
accepted rules.
The above data is likewise from the yearly report. The vast majority can see, the more significant
part of the dangers are on the inventory side.
The complexity of Apple's Supply Chain
Apple Supply Chain is not that confusing. Thus, this area will clarify a few qualities of Apple
Supply Chain through different measurements and contrast them and Amazon Supply Chain.
Stock Turnover
Stock Turnover is a customary budgetary measure to decide how productive the organization
utilizes its money related assets to make deals; the higher the number is, the better. Production
network experts likewise utilize this measurement in the stock administration work. The widely
acknowledged estimation is [Cost of Goods Sold/Average Inventory]
Stock Turnover of Amazon versus Apple Inc
The above picture demonstrates that the stock turnover of Amazon and Apple is 10 and 59,
separately (cost of merchandise sold of computerized content/downloadable items barred). From
the presumptive worth, Apple is by all accounts increasingly active. There is a purpose behind
this. Apple Inc is presently a showcasing organization with no assembling office; however,
Amazon is a wholesaler of general product. Amazon needs to keep more stocks. By then, the
stock turnover is lower.
Number of Key Suppliers
Supply chain management is about the connection between exchanging accomplices. Working
intimately with key providers will carry an upper hand to the business.
Key Vendors of Apple, Inc.
Most recently Apple said that they have around 156 primary merchants over the globe. This
number of providers is very reasonable when compared to the business’s size.
Apple's Warehouse Facilities
In the United States, transportation cost is the most significant part of the all-out coordinations
cost. At that point, the best possible administration of related capacities is fundamental.
Apple Inc has a focal distribution center in California. What Apple must do is to synchronize
information between the focal stockroom and its very own 246 stores + clients. With the fitting
degree of mechanization, this sort of activity is productive.
Number of Items (Stock Keeping Unit)
Stock Keeping Unit, aka SKU, is another indication of supply chain complexity. One model of
the phone but different software inside is considered a different item/SKU.
Number of SKUs at Apple
Apple has about 26,000 items (rough estimate, subject to change). The point is that when there is
a demand forecast, which is a more complicated situation, there are 26,000 items to manage.
Product Life Cycle
The product lifecycle is how long a company can sell products (a more extended selling period is
better for the bottom line).
Product Life Cycle for Apple, Inc.
The life of Apple's essential products is way more than 12 months. The demand forecast of
seasonal, short life cycle products is challenging to estimate.
Most people may notice, based on the example characteristics, Amazon's Supply Chain is far
more complicated than that of Apple Inc.
Final Analysis
The aftereffects of the examination of Apple's procedures, testing issues, and complexities
demonstrate that the achievement of its inventory network tasks relies upon how well they deal
with the provider relationship. The provider relationship incorporates early provider inclusion in
new item advancement, close correspondence, and provider execution improvement/assessment.
References
Apple. Inc. Annual Report of Apple Inc (SEC Filing). Retrieved from
https://www.sec.gov/Archives/edgar/data/320193/000032019317000070/a10-
k20179302017.htm
Benjabutr, Ben. Supply Chain OPZ Retrieved from
https://www.supplychainopz.com/2013/01/is-apple-supply-chain-really-no-1-case.html
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Sheila Cormier September 23, 2019 Page |1

some suppliers to secure the strategic raw materials.

the Apple Supply Chain Map.

Challenges in Apple's Supply Chain

 The worldwide economy could influence the Company.

 Some re-venders may likewise disseminate items from contending makers.

 Inventories can wind up outdated or surpass the foreseen interest.

are not familiar to the rest of the industry.

 The ability to obtain components in enough quantities is essential.

 The organization relies upon strategic administrations given by re-appropriating

part of the dangers are on the inventory side.

The complexity of Apple's Supply Chain

acknowledged estimation is [Cost of Goods Sold/Average Inventory]

Stock Turnover of Amazon versus Apple Inc

separately (cost of merchandise sold of computerized content/downloadable items barred). From

stock turnover is lower.

Number of Key Suppliers

Key Vendors of Apple, Inc.

number of providers is very reasonable when compared to the business’s size.

Apple's Warehouse Facilities

degree of mechanization, this sort of activity is productive.

Number of Items (Stock Keeping Unit)

the phone but different software inside is considered a different item/SKU.

Number of SKUs at Apple

Product Life Cycle

better for the bottom line).

Product Life Cycle for Apple, Inc.

seasonal, short life cycle products is challenging to estimate.

more complicated than that of Apple Inc.

new item advancement, close correspondence, and provider execution improvement/assessment.

Benjabutr, Ben. Supply Chain OPZ Retrieved from

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