Supply Chain of the Iphone 4 Series

2440 WordsNov 5, 201210 Pages
Discuss the Supply Chain Management of a Particular, Product/Company/Service of your Choice. In this report we will analyseq the supply chain management of the iPhone 4 series. This will be done by researching the different parts of the supply chain, looking at how they are integrated and ‘referring to processes and exchanges across multiple organisations,’ (Verma and Boyer, 2010) and how the ‘operations management consists of the processes that effectively produces, transform, and deliver a product or service,’ (Verma and Boyer, 2010). Apple products are known to be at the top end of technological advancement, as one might expect, they involve a lot of components. Apple in California designed the iPhone 4. Foxconn assembles it in…show more content…
In this instance Apple arguably lost some credibility, as a firm promising top quality products let its customers down. It also handed momentum to rival firms, such as Nokia, who were offering the N8 as direct competition to the iPhone. One of the key decisions that a firm such as Apple has to make is - should the products be developed in-house, or externally, by outsourcing? With outsourcing comes greater risk of objective clashes. By outsourcing, Apple gives away control of some important capabilities. A balance has to be found between low cost production and quality of goods and services produced by suppliers. Also the welfare of workers employed by Apple’s suppliers comes into consideration. There have been reports in China of mistreatment of workers who develop Apple products. Apple’s largest Chinese supplier, Foxconn, demonstrates the clash of moral values between firms at different points of the supply chain. Reports of an authoritative structure in place by the managers at Foxconn and workers even threatening suicide, (Chi-Chi Zhang (Feb 2012) CNN) suggest that this firm prioritises speed of production over welfare of the workforce. This mistreatment of workers will have a direct impact on Apple’s public image and

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