Analyze the Evolution of Supply Chain Management in Apple Corporation

2084 Words Oct 14th, 2012 9 Pages
Apple’s Supply Chain Management – An Overview
Many supply chain professionals consider Apple’s supply chain to be the best in the world. But is that simply because Apple is among the most recognised brands in the world? For an objective analysis, a deeper look into the management and supply chain must be investigated thoroughly. However, in order to study Apple’s supply chain management, parameters on what a supply chain is must be set. Traditionally “Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.” Supply chain management spans all movement and storage of raw materials, work-in-process
…show more content…
Because as everyone knows, any type of public presence or marketing can be manipulated into good marketing for a product and if nothing else, Apple has had a fantastic team of marketers up until now.
Because Apple has become so large, it has procurement advantages smaller rivals can’t match. Financial analysts are beginning to focus on Apple’s supply chain. For example, Samsung lost $10 billion in market value when Apple placed a huge order for flash memory with Elpida, securing more than half of that company’s supply. Apple reportedly has price advantages in securing key components, manufacturing capacity, capital equipment, and airfreight capacity. It should be noted that all these privileges come with already being a worldwide recognized and desired brand which has already reached the heights of success, making it rather difficult for rival businesses to compete.
Like other companies that have huge procurement clout, when Apple asks a supplier for a price quote, it demands a detailed accounting of how the manufacturer arrived at the quote, including estimates for labour and material costs and projected profit. Manufacturers can get hit with penalties for quality issues and warranty claims. Apple is becoming so big that even though it has a number of customized components that it has to pay extra for, the company’s cost structure is starting to resemble that of

More about Analyze the Evolution of Supply Chain Management in Apple Corporation

Open Document