Analysis Of Apple 's Supply Chain

897 Words May 4th, 2015 4 Pages
Analysis of Apple’s Supply Chain:

Smartphone and tablet
Expansion, increase in demand
Ever changing market – phablets
Rapid change in market
Manufacturers have coped with frequent new products
But supply chain has to ensure its smooth
Overlapping planning
High end electronic goods – huge profits
High price due to new tech but money makes changes ok

How does supply chain handle the massive demand for products

Apple’s renowned for their brilliant abiltity to cope with changes in market demand. They strictly control every aspect of the supply chain to ensure that both the distribution and supply-and-demand relationship are near perfect. They use a Make-To-Stock method of Supply Chain Management that allows customers to walk into any Apple Store and make a purchase the same day, which is coupled with an extremely low inventory level that means the system has nearly Make-To-Order characteristics. Apple uses SAP (Systems, Applications & Products in Data Processing), a German Enterprise Resource Planning software, to power the global supply chain and implement a strategy to “purchase raw material and reserve manufacturing capacity ahead of time “ [1] in order to make this possible.

As mentioned earlier, Apple’s supply chain relies on third party suppliers and outsourcing to produce their devices. This strategy can become extremely risky in satisfying demand when resources are limited to one supplier, as seen in the company’s recent failing in meeting demand for the…
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