Apple Inc-Supply Chain Management

Apple Inc-Supply Chain Management

Introduction

Apple Inc is a well established name in the technology industry. Apple Inc designs, produces and markets various products related to mobile communications, computers and media devices. It products includes a number of software, networking solutions and digital applications (New York Times, n.d.). The success of Apple Inc. for more than ten years can be attributed to many factors. However, one of the most significant reasons for the success of the company has been its supply chain operations. The ability of the company to control and manage its procurement, production and logistics in innovative ways has made it able to success tremendously (Sandy, 2011).

Discussion

Supply chain management is a crucial ingredient that needs to be well managed by every organization. Apple Inc is an organization that excels in this aspect. Apple Inc has developed a closed network where it exercises control over simply about every part of the supply chain. They keenly control every part from designing of the product to marketing it to the retail store. Owing to its volume and its irregular ruthlessness, Apple acquires huge markdowns on parts, production facility, and air freight. Proficiency in managing the operations is as important a plus point for Apple Inc as product originality or marketing (Satariano & Burrows, 2011).

The success of Apple Inc in supply chain management started in 1997 when Steve jobs utilized the air freight to make iMac available before Christmas of 1998 (Satariano & Burrows, 2011). The company brings together the physical and the digital facets of supply chain at low cost efficiently (Allen, 2010). Apple Inc's sourcing practice is devised to make sure alike and just treatment of suppliers, in order that, they can completely take part in a competitive procurement procedure.

Apple Inc solicits suppliers who want to take part in the procurement procedure to register them with Apple's Supplier Information Database (SID). It is a protected online catalog that Apple keeps with updated data on existing and prospective suppliers on a regular basis. SID facilitates Apple procurement experts to access core information regarding prospective and existing suppliers, comprising potentials, (UNSPSC) that is Universal Standard Products and Services Classification codes, Supplier Diversity certifications, contact details, product or service descriptions, and other pertaining information. Subsequently when there is a requirement for the products or services that the registered supplier offers, Apple's procurement expert contacts the supplier to look at prospective openings. However, ...