Apple inc.: Global Supply Chain Management Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Apple inc.: Global Supply Chain Management Case Study Help

Introduction

A international technology company, Apple Inc. creates, produces, and sells internet services, computer software, and consumer devices. The corporation is renowned for its cutting-edge goods like the iPhone, iPad, and MacBook, which have assisted it in becoming one of the most valuable brands in the world. The company's successful supply chain management is just as important to the company's success as its unique products.

Apple's success depends on supply chain management since it allows the corporation to streamline operations, cut costs, and boost customer happiness. Apple has a global supply chain that crosses numerous nations and includes a range of manufacturers, suppliers, and shipping companies. Apple's supply chain is renowned for its effectiveness and adaptability, allowing the business to react rapidly to shifting market demands and preserve its competitive edge.

However, Apple's supply chain needs to alter in order to meet its strategic goals given the rising popularity of wearables and services. . We will address how Apple's supply chain should adapt in this essay to match the company's strategic goals for wearables and services. We will examine Apple's present supply chain management procedures first, and then suggest modifications that the company should make to meet its strategic goals.

Problem Statement

The Canadian company BXE Capital's market analyst, Jessica Grant, was concerned about the stagnant position of Apple's stock market. The stock market had fallen to $524.47 in 2014 from a high of $700 in 2012, and the death of Steve Jobs had left investors unsure about the company's future. However, the new CEO, Tim Cook, had assured the media that the company was working on a new line of products that would dominate the market once launched. Despite Cook's reassurance, Jessica was still unsure about the investment decision and whether Apple would be able to regain its former position in the market.

However, another problem that arises is how supply chain of Apple should alter to sustain its strategic goals for wearables and services. Apple has been focusing on expanding its product portfolio to include wearables such as the Apple Watch and services such as Apple Music and Apple TV+. However, this shift in focus has created new challenges for Apple's supply chain management.

The company needs to ensure that its supply chain is optimized to support these new products and services while maintaining the quality and reliability that customers expect from the brand. Therefore, it is important to analyze Apple's current supply chain management strategy and identify areas where improvements can be made to support the company's strategic objectives for wearables and services (Johnson, 2020).

Analysis of Apple's Current Supply Chain Management

Overview of Apple's current supply chain management practices:

Apple Inc. has one of the most complex and sophisticated supply chain management systems in the world. The company's global supply chain management strategy enables it to produce and distribute products to consumers in a timely and effective means, while maintaining high levels of value and consistency. Apple's supply chain involves hundreds of suppliers, manufacturers, and distributors located around the world. The company has a strong relationship with its suppliers and has implemented various strategies to ensure that its supply chain is efficient and cost-effective.

Country	Current Production	Planned Production (by 2022)	Planned Production (by 2025)
China	100%	95%	75%
Vietnam	0%	5%	20%
India	0%	5%	25%

Note: The percentages in the table represent the portion of global iPhone production.

One of the key features of Apple's supply chain management is the use of contract manufacturers, such as Foxconn and Pegatron, to produce its products. These manufacturers have the capability to produce large volumes of products quickly and cost-effectively. Apple has also executed a just-in-time (JIT) inventory system, which enables the company to diminish inventory carrying costs and minimize the risk of overstocking (Ishida, 2020).

Focusing on sustainability and ethical sourcing is another characteristic of Apple's supply chain management strategy. To guarantee that its suppliers follow ethical and environmental standards, the company has put in place a number of initiatives and programs. For instance, Apple mandates that its vendors abide by its Supplier Code of Conduct, which lists a number of labor and environmental norms..............

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