Apple Inc’s supply chain Essay Example for Free

Apple Inc’s supply chain Essay Apple Inc is the company that create a great innovation product development such as ipod , iphone , ipad , Macbook . Apple’s products have been accepted about modern design, high quality and technology. Behind the success, Apple has a best supply chain management. The beginning of their supply chain start with the research and development product to make sure that can be making and have special things to surprise their customer. The products produce from a various sources of raw material in several countries. The major suppliers which make core components for Apple are the manufacturers in China and other parts are made from United States, Europe and other countries in Asia and then they transfer all components to assemble in China. The finished goods are stored in warehouse facility in Elk Grove, California for distribute to the customer who order via retail stores, direct sales and other distributors. The other distribution way is ship product directly to their customer by the assembler. The point of these supply chain that raise the customer satisfaction is the quickly distribution via airfreight and the protection for the uniqueness of their product by places electronic monitors in some boxes of components to track them from Apple’s headquarters in Cupertino. Advantage * They have high inventory return and don’t have to get the demand forecast for new product like other company because they have loyal customers that support their supply and have potential waiting when it is out of stock. * They have procurement advantages that smaller rival can’t match * They can ask a supplier for a price quote and make a special contract to secure strategic raw materials. It reduces a raw material problem and the inventory out of stock. * The high protection helps them to ensure that customer delight and surprise when the products hit the market. Disadvantage * Most of their key components come from China that is a cause of risky about any sort of man-made or natural disaster. It can make Apple’s supply chain to a halt. * They might lose the customer who care about supplier responsibility because of some supplier have a hour of work more than Apple’s standard labor policy, work a maximum of 60 hour per week and to get at least one day off per week, especially in the new product launch period