CASE STUDY ON SUPPLY

CHAIN MANAGEMENT
OF APPLE INC.

Apple Inc., a Top 100 company

Hari Vishnu-199
Name - Harshit Goyal-200
Mriganka Sharma-213
Sahil Mahotra-223
Sam Peter Georgie-224
Snehasish Kundu-230
Shubham Kundu-32
Soumik Roy-231
Tapish Rajput-234
Brief background of company
• Apple Computer was founded in April 1, 1976, by Steve Jobs,
Steve Wozniak and Mike Markula.
• Their first computer model was Apple I.
• Wozniak improved the design and showcased the Apple II in
April 1977.
• In Dec 1980, they became largest private manufacturers of
PCs.
• Steve Jobs left Apple in 1985.
• At that time Apple struggled to survive in the market leading
to huge amount of losses.
• After launch of Windows 95, sales of Apple Macintosh fell
dramatically.
• In 1996, Jobs returned as CEO of the company.
• Jobs stopped licensing MAC operating systems to 3rd party
manufacturers.
• Throughout the time Apple started manufacturing its own
devices.
• In 1997, Apple announced partnership with Microsoft, that
would see the latter invest $150 million in Apple and release
Microsoft Office for Macintosh.
• Between 1998 and 2001 Apple launched iMac computers
and focused on design which sold out quite well.
• In 2001, Apple announced that it would be opening its own
retail stores.
• In Oct 2001, it introduced iPod which was supported by
iTunes music store.
• iPod became a huge success, hence building a strong
financial base from which the firm could grow.
• After that they launched iPod Video, iPod touch and by
2007,the iPhone.
• From 2007 to 2013, with huge success in iPhone and iPod line, they
introduced new Mac computers, Apple TV and developed App store.

• In 2010, Apple launched iPad reinventing tablet market.

• Apple sells 70 % of its products and services directly to consumers and

businesses.

• Steve Jobs died in 5 October 2011 and Tim Cook became CEO of
Apple.

• Apple’s highest selling product is the iPhone followed by Air Pods pro.

• Current net worth of Apple is $1.3 trillion.

Good practices of the company
• Apple kept a short new product development cycle leading
to more profit each year or so.
• Apple mainly focuses on design and features along with
hardware and software making it unbeatable in market.
• Apple designers worked in close proximity with suppliers and
manufacturers.
• They spent a lot on R&D to ensure they have innovative
products. They spend more and more on R&D every year to
bring in latest innovation.
• Apple has separate R&D departments and separate P&L
accountability for each product segment.
• Apple purchases suppliers production capacity in advance in
order to ensure steady supply of key parts.
• Product demand is forecasted 150 days in advance and
updates are sent to suppliers to allow adjustments in
production schedule.
• Every quarter, Apple reviewed its inventory levels, adjusted
its demand forecast, and monitored its cost of components.
• Apple engineers worked closely with suppliers to update
manufacturing process and technology.
• Apple runs each iPhone camera module through battery of
tests before it could be inserted into an iPhone.
• The assembly firms focuses on hiring thousands of
temporary workers from Southeast Asian countries.
Bad practices of the company
• Safety problems and harsh working conditions.
• Student and child labor abuses.
• Avoiding taxes.
• Forcing Apple maps on iPhone users.
• Hiring Foxconn.
• Low pay, poor working conditions and environmental hazards
in supplier factories in China and across Asia are sources of
long-running controversies.
 Problems that the company faces

• Managing a huge workforce

• Keeping tight schedules

• Control over manufacturers

• Leadership challenge
SUGGESTIONS
• Needs to maintain a good relationship with the suppliers and
manufacturers

• huge investment put in R&D department may not have a positive

return 

• Better management of temporary workers by subcontractors

• Procurement of components from different supplier