The Supply Chain Of Apple Inc.

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The Greatest Supply Chain Assembled 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. Apple has garnered a competitive advantage through all aspects of the supply chain. On the production front, Apple has made many high-priced deals to ensure the completion of technological advances for their products. In one example, described by Adam Santariano and Peter Burrows of Bloomberg Businessweek, Apple made an exclusivity agreement with a drill company to sell them hundreds of customized drills. The drill would be used to drill through the aluminum of MacBooks so that a tiny green light could shine to signal that the camera was operating. In 1997, upon Steve Job’s return to Apple, Santariano and Burrows write of a $50 million dollar purchase made by Jobs. The purchase bought all available holiday airfreight at a time when most rival companies shipped via sea at a far cheaper price. By purchasing the airfreight space, Apple was able to get the new translucent blue MacBooks widely available for the holidays. These two examples are only a few of the decisions Apple made to help establish a competitive advantage in the market. As far as distribution is concerned, Apple has a far superior business model then all com... ... middle of paper ... ... before they realized they needed them. It seemed that Apple was a step ahead of the competition in all aspects of the supply chain. Unfortunately, this step up came at the cost of poor working conditions in Asia, which seems to be common with most large American companies. Apple is all about secrecy and having the “hot new item” which leads to short deadlines and pressure on Apple’s supply chain. It seems as though this will not change anytime soon, and has little effect on Apple sales. As I read about the poor working conditions on my Apple iPad, type this paper on my MacBook pro and will call my parents on my iPhone 5c once I am finished, it is easy to see just how far Apple has come since it’s conception. Apple is here to stay in large part due to the competitive advantage it holds from the production and distribution of their highly efficient supply chain.

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