Apple Company has a broad supply chain which extended to several regions around the world. To well understand the diagram shown above, initially, it’s necessary to clarify and define supply chain concept. The supply chain is a network consists of a number of businesses, individuals, technology, materials and inputs which contributes in manufacturing and selling the firm’s products. (Supply Chain (SC), 2013) As it’s clear from the above diagram, Apple’s supply chain is breaking down to five main processes and they will be explaining and discussing here in this part of our project in details. First of all, Sourcing is the basic step in every supply chain because it’s similarly like the columns in the construction, without them, it will be weak, …show more content…
Apple products manufacturing is carrying out in china only where all needed bits of products collected from suppliers are assembling there to start production. One of the reasons that makes the majority of businesses around the world to carry out their manufacturing processes especially in china is that Chines people accept low wages which results from having a very high population. As a result, Apple and the majority of businesses nowadays tend to build their facilities and carry out their production in poor or countries with high population. That would give them the potential to reduce costs and then increase profits. Apples owns factories in China where all their production carrying out till they submit finished …show more content…
As we said in the preceding process, Apple Company rely on two warehouses with different sizes. This can be explained as a smart technique to meet different types of customer needs and orders efficiently. Those customers who purchase Apple’s products using its Online Store, their order will be shipped to them from Apple’s intermediate warehouse via United Parcel Service of America (UPS). Apple uses the large warehouse factory which is via Elk Grove in California, to provide distributors, wholesalers, network carriers, direct sales, and retail stores such as Carrefoure, Sahraf DG, JUMBO and many other retailers. This warehouse factory is considered as a central warehouse and also it includes a call center. (Is Apple Supply Chain Really the No. 1? A Case Study,
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On many occasions, Apple Inc. has been voted to boast the most efficient supply chain in the world. By leveraging wealth and pure business strength, Apple has been able to construct a supply chain that is both efficient and highly profitable. While much of this supply chain construction has come from great investing and business decisions by Steve Jobs and Tim Cook, it has come at the cost of many factory workers’ well being overseas. Overall, the construction of the highly organized supply chain has given Apple a competitive advantage over the rest of the market.
Access to distribution channels: Accessing major distribution channels might be challenging and it stands to be a significant barrier. Apple products are sold by third party retailers, Apple brick and mortar stores and on Apple’s website. It might not be too easy for a new entrant to convince a third-party retailer to prioritize its product over major products like Apple’s.
Apple is a large multinational corporation with a well-known reputation as the world’s second-largest information technology company. They are one of the top 10 American companies and one of the most valuable brands in the world. Apple has several different suppliers throughout the world that they partner with for their supply chain. As a well-known company, you might think that they are cautious about who they choose to do business with.
Apple pays about $6 billion annually in federal taxes on these sales. Congress has no authority over sales outside of the United States. This is where one has to question the United States antiquated corporate tax system, which was created long before it was common for United States corporations to have such global operations. It does not seem reasonable to expect a company to bring the money back to the United States just to be taxed at 39%, just because it is the right thing to do. If the tax code was written in a way that allowed foreign profits to be repatriated at a single digit percentage rate, I believe more companies would prefer to have their money in the United States. This is not going to happen at the current 39%
Over the last decade, Apple, Inc. has been one of the most successful company in the world. Apple is a multinational corporation that designs the electronic, manufactures, sell a several of related software. It provides many products for example iPhone, iPod, iPad, Mac, Apple TV. The important factors that Apple, Inc. use is technology. Technology with new innovation has the advantage that help an organization to beat with another company. And bring more competitors to the market. Most of the product in electronic industries are based on innovation. Thus, in order to achieve the goal and keep up with their competitors, Apple must frequently introduce new products or services
Apple is a billion dollar a year company. It is through their manufactures in China that they are able to produce their products. These manufactures want fast and inexpensive production. One of its largest manufactures is Foxconn. They have manufacturing complexes throughout China. People of all ages come to work in the factories. The majority are young migr...
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
Starbucks is a premium coffee retailer, which started in 1971. It is established in 70 countries all over the world. Starbucks has revolutionized the coffee market by selling expensive and high quality coffee. It has marketed itself as a third place between home and work. They select the locations in such a way that Starbucks is on their way to work and while coming back home from work.
Apple is a multinational company with strong financial backups. They own various other business units, which provide Apple a stable financial position. Due to Apples financial stability the company has enough working capital. Therefore Apple always was and still is able to open numerous store outlets worldwide. As one can see below Apples Net Sale is increasing enormously from $108,246 million in 2011 to $170,91 million in 2013 (Apple Inc., 2012).
In the competitive environment, it is necessary for moving products involves reception of products at an intermediate location, store, repackage, clear customs and transport to final destination. The other factor in the supply chain logistics is speed given information flows fast in the internet era. The customer expects everything quick accustomed to the instant status access to the information. With the real time inventory, customer expects the location of the product, it is next scheduled movement and the final delivery schedule.
Sourcing is defined as the process of determining how and from where manufactured goods or components or raw materials will be procured. The main motivation of the sourcing process is to obtain high satisfaction with the low cost. Materials essentially incorporate piece products that will be cut and converted into the garments. In the case of raw material, it is also important that availability of raw material (both in quality wise and quantity wise) when it is needed along with the suitability of the material for garment design and end use. Sourcing is essentially deciding the most cost-effective merchant of materials, generation, or completed products at the predetermined quality and administration level. It is nearly related and an essential piece of merchandiser's responsibility. Sourcing department along with merchandiser assumes the fundamental part of execute and shipment of fare request effectively. Merchandiser must ensure that all approvals related to the fabric and trims ought to be composed of the sourcing division in given time allotment. Lead time, the process of fabric and trim approvals, the expense of logistics and INCO terms are the essential parameters need to remember while choosing the sourcing strategies for
Apple Inc. is one of the world’s most successful companies when it comes to supply chain management. In its early years the company struggled forecasting demand and managing inventory causing many issues in supply chain including stock-outs. As years went on Apple began investing heavily in their supply chain, controlling many aspects such as overseas production, assembly and logistics. While Apple still faces some challenges including things such as technology, competition, global market share, and leadership, it is still ranked as a master company in supply chain according to Gartner Inc, making a great company to invest in.
Apple Company was formed by Steven Paul Jobs and Stephen Gary Wozniak in 1977 in California, the United States. It mainly deals with consumer electronics, computer software and commercial services, such as iPhone, iPod and Macintosh computers. In present, Apple already became a leader in the consumer electronic industry and also it is one of the biggest technology company in the world with over $60 billion revenue per year. As an international American company, Apple Inc. has a great number of cooperative partners (Figure. 1) in different countries, such as China, Japan, the United States and South Korea. Compared to other counties, Chinese Original Equipment Manufacturers (OEM) is the most unethical manufacturer in terms of values and non-rigorous
Apple keeps product SKUs simple, the salespeople inside the stores have the in depth knowledge of the products. Just think that when you enter an Apple store and one of the sales staff greets you, you’re not asked, “How can I help you?” Rather they ask, “What would you like to do today?” They satisfy you by going to the heart of any technology user’s question, any question related to the technologyand the user is interested in.
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system . The basic objective of supply chain is to “optimize performance of the chain to add as much value as possible for the least cost possible.