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Logistics & Supply Chain Management Assignment1
Logistics & Supply Chain Management Assignment1
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Name of the university
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Author Note
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Executive Summary
The accomplishment of any organization lies in the effective Logistics and Supply
and the application of the complicated operations that are executed and
the principles of Logistics and supply chain management, an organization has been
taken into consideration. Apple.Inc has been selected as the organization. The report
includes the Logistic Management and the supply chain management of Apple and
how its Logistics are related with the production, marketing and the finance of the
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organization. This report further discusses about the order cycle and the inventory
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management and how they influence the productivity of the organization. The
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purpose of this report is to closely analyze and provide a detailed output about Apple
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and its functionalities.
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Table of Contents
Introduction...................................................................................................................3
Interfaces......................................................................................................................4
Order cycle....................................................................................................................6
Inventory management.................................................................................................8
Conclusion..................................................................................................................10
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References.................................................................................................................12
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Introduction
the organization but the key to accomplishment lies in the effective management of
the diverse divisions in the organization. The most significant way of calculating the
logistic and supply chain division of the organization. Logistics is the detailed
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This report covers the details about the principles of Logistics And Supply
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Chain Management with reference to an organization has been considered. The
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organization taken into consideration is Apple.Inc. Apple is the world largest IT
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Corporation in terms of returns and asset and the world’s second largest cellular
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phone manufacturer. Steve Jobs and Steve Wozniak originally founded it. Apple has
about 115,000 employees from all over the world. Apple earn about $ 300,000 each
minute and has more in commission currency than the U.S treasury itself. Apple
iphone has higher sales than the entire asset that even Microsoft has to offer. The
entire brand is worth US$ 118.9 billion and is the world’s most esteemed brand, after
Apple has just about 475 Apple store in 22 countries. In the first quarter of the
year 2014, Apple generated returns more than Google, Face book and Amazon
combined. The distinctiveness of Apple lies its work culture that follows the principles
modern combativeness, that are taken into contemplation while making its products,
making it exclusive and prized. The company’s prolific manufacturing along with
logistics and supply chain help it introduce newer products with no need of having it
The purpose of this report is to closely identify and analyze the logistics
Interfaces
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synchronization between the logistics and the three core areas namely the
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production, marketing and the finance. The finished product requires achievement of
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raw materials, parts and components that sets off and influences the purchasing
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behavior and the activities (Slack, 2015.
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The quantity of the incoming resources and parts obtained by purchasing is
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often influential in determining the quality if the finished product regarding sales and
distribution. In this case, with reference to the logistics, the production and the supply
chain of Apple is exceptionally strong. The reason for this is Apple chooses to focus
in developing the hardware, software and the connected digital services rather than
just focusing in one aspect. This helps in providing an unparalleled user experience,
allowing Apple to capture higher boundaries in terms of its products and services.
Frequently the equipment that are used in production are exclusive in nature due to
the special contracts or because Apple is large enough for a accumulation for the
Apple makes itself exceptional in terms of production since it asks its supplier
for a price quote and a detailed accounting for how the manufacturer would meet the
quote, which includes the labor, material charge and the projected profit. The
suppliers can be probably hit with a penalty concerning about the quality related
On the brighter side, owing to this strategy Apple does not gets demand
predictions for new products and they have a section of loyal clientele who are willing
to wait for the new products. This is tremendously decisive in creating huge
marketing buzz (Chandler & Werther, 2013). In terms of logistics with the production,
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Apple works in confidentiality in terms of the supply of the key element and in
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of the products in order to avoid outflow.
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particular the tailored components that are being used to protect the distinctiveness
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The main objective of this technique is to protect the design and ensure an
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enormous marketing sensation when the product in reality hits the market. In this
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manner, Logistic management is interconnected with the marketing strategy of Apple
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(Eden & Ackermann, 2013).
finance is the management that does not believe in blocking the flow of cash through
Apple has made a status through its management and logistics so almost
certainly the finance management would not be much affected by the Logistics
management due to the brand name it has earned through marketing and
manufacturing quality (Hill, Jones & Schilling, 2014). Apple has always maintained its
stand by the worthy pricing of its products and the customers are also keen to
purchase its products at any price tag and administer the favorable cash flow by its
well maintained management and pricing strategies (Chen, Li, & Zhou, 2012).
From the point of view of cost efficiency, with an effort to subordinate logistics
of hauling would amplify the lead-time and accordingly augment the inventory
incurring costs. This would in turn injure the client services due to the delayed
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particular, logistics are closely related to marketing through their involvement in client
services.
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Order cycle
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The cluster of the distribution network has been formulated in such a
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approach that the warehouses and the retail store of Apple get enough supply to
meet soaring levels of order at times. The stocking up of the inventory in the retail
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stores in a 24 hours window foster an proficient technique of eliminating the out of
stock crisis in the retail outlets. Apple obtains the key resources from its vendors and
transports the components to the manufacturing plant in China that carries out
On receiving orders from the customers, Apple ships and delivers the product
straight to the clients. The idea or concept of supplying through online portal is about
quicker delivery of the products to the customers who are not able to reach out to the
retails stores. In order to help perform better in terms of supplying its products, Apple
management (Stadtler, 2015). Apple makes every promising attempt to deliver its
products to the customers who order their products via online. This process is
facilitated by one click feature that has been integrated by Apple. Customers who are
ordering their products via online can avail the mentioned facility by signing into the
and the selection of the desired product to be made, then in order to purchase click
the “Buy with one click” option. With no valid Apple account in existence, the
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Apple tries to make its order dispensation in time and prompt and in spite of
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that, it faces repercussion due to weighty ordering and climax times surrounded by
holidays that results in the delay. Apple makes every probable exertion to transport
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its products to the customers in time, to uphold a excellent relation with the
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customers. Even though the lead-time of the delivery is provided at the time of
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ordering, the delivery time may vary depending upon the stocks and availability of
the products. To make the process efficient, the customers are appropriately
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informed about every step of processing and progress in the order (Tayur, Ganeshan
One of the major backfires that Apple face is disruption of the online order
supplying system. This incident usually takes place due to the failing of the AT&T’s
online system due to congestion, account security breaches and due to the
fluctuations in the server. This usually results in a total pandemonium where the
orders cannot be taken online, thus disrupting the entire order processing system.
through which the order process can be channeled instead of one central server,
which can be venerable to unethical hacking and viral attacks. System crashes can
maintaining an excellent and vital connection with the suppliers. Proper action and
efficient measures must be taken after the products have been supplied to the
clientele to maintain a fine after sales report and a excellent relationship with the
patrons (Goddard et al., 2012). Improvising older dispensation systems are essential
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Inventory management
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The crucial key to accomplishment of Apple is its inventory management.
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Apple has created a vast range of products and devices that were meant for diverse
purposes. Some of the inventories include the ipad, Mac book, Mac book pro, I
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phone, smart covers and much more. Even though some of the products did not
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stand a possibility to thrive itself in the global market, yet it left its mark in the course.
innovations are indivisible. In order to accomplish such a goal Apple emphasizes and
methodology to set its mark in the global market. Apple applies the design concepts
in an inventive way that is influential in determining the appearance of all the devices
underneath the same brand. This concept focuses on the brand significance that is
attained through the user orientation as Apple believes and follows the same value
up to date.
Apple’s furtive to triumph lies with the sophistication of its inventories. Apart
from meeting the customer demands, the performance of the company depends on
the ability to create user-friendly interface that are demanded by the consumers
Apple in the current period has cut down its inventories, the reason being,
inventories are depreciates quickly and tends to drop about 1% to 2% every week.
The present CEO of Apple, Tim Cook adopted the similar tactic to cut down the
inventories in order to help achieve better in the market struggle and slash down the
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The theory at the back is to maintain the stocks at a lower rate. This is
beneficial since the technology manufacturers cannot afford to keep many products
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in stock due to the highly competitive nature of the technology industry (Hitt, Ireland
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& Hoskisson, 2012). An innovation from a competitor organization can alter the
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dynamics of the entire industry and bring down the value of products in inventory.
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Apple has one of the most flourishing inventories in the electronics industry. In
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order to achieve such the majority of the warehouses have been shut down. Almost
ten warehouses have been locked out with only nine remaining. With the lesser
Apple was able to maintain a good strategic rapport with its vendors (Lambert
& Schwieterman, 2012). This tactic has been used to make the company leaner by
cutting the extra incurring expenses and plummeting the inventory overstocks, by
keeping in mind the expiry date of the products. Keeping the inventories lesser
ensure the entire selling of the goods without any depletion (Coelho & Laporte 2014).
The efficient ways to boost production is to reduce the inventory days and
lesser number of days to sell out its products. This is achievable by having only one
central warehouse with most of the inventory limited in the retail outlets. By taking
the advantage of drop shipping or directly transporting the products from the
producer to the consumer, online purchase can efficiently trim down the transport
Conclusion
With the help of this report, the principles and theories of Logistics and Supply
management are used to rationalize the tactic that is adopted by Apple.Inc in terms
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of Logistics, its production marketing, finance, order cycle, supply and the inventory
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management thus enhancing its productivity in the global electronics market. Apple
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productively administers the principles and strategies to influence the production,
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marketing, distribution and financial divisions. Apple maintains its manufacturing
quality by controlling the supplies and the superiority of the parts that are being used
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in the gadgets, making it so unique and esteemed. Apple’s concept of maintaining
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uncertainty in terms of its products manufacturing is one of the sturdy marketing
cash despite the fact that Logistics and Finance management are two different ends
within the same organization. The logistics and the brand status do the work of
amplifying the selling of the products. The supply management of Apple is one of the
paramount features and in spite of that, the order processing system of Apple face
major backlash due to uncertain factors like crashing and corruption of online
ordering systems, hacking and faulty network servers, improper order placed,
with holidays is also one of the factors of delayed delivery of the products. Apple has
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References
Chan, J., Pun, N., & Selden, M. (2013). The politics of global production: Apple,
Foxconn and China's new working class. New Technology, Work and
Chandler, D., & Werther Jr, W. B. (2013). Strategic corporate social responsibility:
Publications.
Chen, X., Li, L., & Zhou, M. (2012). Manufacturer's pricing strategy for supply chain
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with warranty period-dependent demand. Omega, 40(6), 807-816.
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Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
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Coelho, L. C., & Laporte, G. (2014). Optimal joint replenishment, delivery and
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inventory management policies for perishable products. Computers &
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Operations Research, 47, 42-52.
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Eden, C., & Ackermann, F. (2013). Making strategy: The journey of strategic
management. Sage.
Goddard, M. G. J., Raab, G., Ajami, R. A., & Gargeya, V. B. (2012). Customer
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases:
Mangan, J., & Lalwani, C. (2016). Global logistics and supply chain management.
Myerson, P. (2012). Lean supply chain and logistics management. New York:
McGraw-Hill.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition
design: How to create products and services customers want. John Wiley &
Sons.
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Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd.
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Stadtler, H. (2015). Supply chain management: An overview. In Supply chain
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management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.
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Tayur, S., Ganeshan, R., & Magazine, M. (Eds.). (2012). Quantitative models for
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supply chain management (Vol. 17). Springer Science & Business Media.