Rajan Jayakrishnan Nair
APPLE: A Tale of Three cities
The case will be used for understanding the following concept:
The potential role which third party logistics providers can play in supply chains
The analysis of costs and benefits at a company level and at a multi-company level in supply chain management.
The Case also provides background on two existing supplier hubs - one in Cork, Ireland and one in
Fountain Colorado. This allows us to contrast the effect of a hub in the US with that in Europe.
(Deferral of payment of duties, tax advantages related to avoidance of establishment of a sales/manufacturing entity)
The need to develop supply chain solutions which support business goals, and to implement…show more content… b. What role does Fritz play in the hub?
Under the hub process, Fritz co-ordinated both the material flow and information flow and acted as customs broker. For international shipments Fritz entities were involved at port of origin, entry and at the hub. It arranged transportation using many carriers over various shipment legs. It invested heavily to upgrade its Information system in support of the supplier hub project including innovation of FLUX, an tracking system which flowed through the process i.e from Order, Booking, In-transit, At Customs, Inland transit,
Warehousing and pulled for delivery by Apple. This system also included defective material category, financial flows and all-in-all Apple was able to monitor the delivery/ inventory process. c. Could Apple have made any of these changes without implementing a supplier hub? What alternative solutions could have been implemented?
Apple could have thought of having these changes done without a supplier base also as this hub system although useful for Apple and Fritz, was a bit riskier for suppliers as cases of extended warehousing, damage at hub and delay in shipments etc.. were considered As mentioned in the case Apple had difficult in convincing the suppliers for the hub Agreement and even had to customize these on a supplier –to-supplier case.
Alternatively Apple could have had made long term contract agreements with suppliers to have their factory/ warehouse near to Apple’s own