Question

What are 6 reasons on why the company, Apple, has the most efficient and streamlined supply chain management in the world?

Answer 1

Apple Inc. is one of the giant four tech companies known globally for its innovative solutions for computer software, electronics, and online services and has been a global leader in the technology industry. The company has positioned itself as a metric of quality, clarity, and standards within the niche it operates in the market globally. The Apple Inc. has a strategy to leverage its quality, uniqueness, designs, and development of its own operating system, software’s, and hardware are to bring customers better experience to the new products and services with superior quality in operation, integration of technologies, industrial innovation, and security modifications.

Supply Chain Operation

In a nutshell of the whole scenario, Apple Inc. purchases the components and raw materials from various suppliers around the world at best quality and prices, then everything gets them shipped to the main assembling plant in China. From there assembling base, the entire finished products are shipped directly to the consumers (via UPS and FedEx) who bought from Apple's Online Store or through online Apple stores. For other distribution channels such as the retail stores, smartphone centers, and other related distributors, the company keeps the products at Elk Grove, California in the American operations (where central warehouse and call center are placed or located) and shipment of products from the warehouse. At the end of the product's life chain, the customer can send their products back to the nearest Apple Stores or dedicated recycling centers. The approach of the inventory management through cut down on the warehouses (due to huge stock storage costs) and make the suppliers compete between themselves for the products.

The major reasons for the success of the supply chain operations are:

(a) Apple continuously releases a supplier list annually and maintain efficient operators.
(b) Apple has established the high standards for managing their supplier relationships and this helps to sync the networks.
(c) Due to the high stature and global reach of the company, the technology giant is completely able to source or demand high-quality products, supply chains, and impose stricter terms on its complete suppliers.
(d) Focusing only on the designing of the products, and by outsourcing its complete supply-chain and assembly operations to the outside vendors for the easy and quick supply chain management.
(e) If any of the suppliers do not maintain the high-quality goods at the right price to Apple or any of the logistic partners do not maintain the supply chain operations, then the company has the authority and position to replace them with another competitor in the market.
(f) Apple Inc. always reacts quickly to the spikes in demand for the product and maintain the inventory levels. This has also given the company a platform to be more flexible when the time has come to announce new products.