Role Of Supply Chain Management In Apple

Apple’s Procurement and Supply Chain Management

Procurement in any type of business is vital because this strategic function does not only improve the organization's profitability, but it also improves the streamline processes of a company, reduce the prices and costs of raw materials, and helps it to identify better sources of supply. On the other hand, the supply chain management helps a company to optimize its operations so that speed and efficiency are both maximized. For customers, speed is important because they value fast service. However, increasing speed would cause a company too much. Thus, maximizing efficiency is essential. For the purposes of this paper, the chosen area of expenditure are the products produced and manufactured

Without which, a business organization or company will find it hard to efficiently use its raw materials so that it is able to provide its consumers the goods and services it seeks to produce. Aside from that, it is vital that business corporations are able to not only have the right products, but also to have the appropriate quantity in the right time and place. When corporations are able to use effective strategies, consumers become motivated to avail and patronize their products. To create customer value, supply chain is indispensable. Supply chain has three functions: 1) the supply of materials to a manufacturer; 2) the process of manufacturing itself; and 3) the distribution of goods to the customers (Canadian Supply Chain Sector Council, 2016). Hence, it is through a supply chain management that business operations are planned and managed

introduces their new product in the market, only a few are able to appreciate how this company manages its business. Considerably, the raw materials necessary to create Apple phones are from Taiwan. Next, these raw materials are assembled in China before it is transported in the United States. This is what makes Apple different from the other manufacturers. Aside from these, the displays of Apple phones are mainly created by Sharp and Japan Display (Minasians, 2016). Some of these displays are made by LG display in South Korea. Also, the Touch ID sensors which are found in Apple's iPad and iPhone gadgets are created by the Taiwan Semiconductor Manufacturing Company and the Xintec (Minasians, 2016). Further, it is worthy to note that the components of iPhone 5s and iPhone 6 are from differnt countries: accelerometer is from Bosch in Germany; audio chipsets and coded are outsourced for manufacturing in the United States; baseband processor are from Qualcomm in the U.S.; batteries are made in South Korea or China; cameras are from Sony in Japan, the FaceTime camera chip is from OmniVision in the U.S. or the TMSC in Taiwan; chipsets and processors are from South Korea and Taiwan, and the like (Minasians 2016). While the raw materials are from various countries, Minasians (2016) mentioned that Apple phones are made in China. Although many people wonder why Apple sticks in using the label “Made in China”, Apple believes that China is