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Apple Supply Chain Management

Apple is observed as the most notable brand globally for electronic devices that develops, designs, and sells computer software and online devices. Apple Inc. is basically an American company, having its branches in different parts of the world. The flagship device of Apple Inc. is the iPhone. The organization was established in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. Initially, the revenue of this organization was not good; it was facing severe management related issues; however, with type, this brand became world-famous for security reasons.

The primary vision of this brand is to manufacture the best securing and computing technologies in the world. The mission of this brand is to produce the best personal computing devices or products for students, designers, educators, scientists, engineers, and business persons all around the world.

Overview of Supply Chain in Context to Apple Explained by Our Experts

The supply chain is a term that defines the network of companies, individuals, activities, technologies, and utilization of resources to produce and trade a service or product. The supply chain begins with distributing raw resources from a provider to the producer and ends with the transport of completed service or product to the customer end. It includes the active rearrangement of business to enhance a customer's value and achieve an advantage in the marketplace. With the help of the supply chain, organizations cut the delivery cost of the products to attract the customer.

Supplier: Global supplier permits Apple to reduce the manufacturing cost of the products. Apart from this, Apple also gives upfront support to their suppliers that aids to produce good relationships with them and to check a stable supply. Also, to update the manufacturing and technological processes, Apple engineers work closely with suppliers.
Strategy: To advertise their products, Apple is adopting multiple strategies. This brand spends a lot of time on its research and development to produce innovative products beyond its competitors. Due to this, brand charges the more for their premium quality products. Developing new products and keep improving the functionality of existing products helped Apple to get a lot of supporters.
Distribution: To speed up the supply chain of Apple, this brand looks for innovative ideas. This company started looking for airfreight when most organizations were dependent on shipments by sea.
Retail: This organization operates 424 retail stores in 16 nations; apart from this, they also have an online store in 39 nations around the world. In 2019, 70 per-cents of sales were made directly to the customers.

Apple’s Supply Chain Implications

Fierce competition: Facing competition with other premium brands such as Samsung urges Apple to be more responsive to improve and enhance customer satisfaction. To diversity the risk of the supply chain, apple seeks the alternate supplier. Adding new suppliers will help in providing greater flexibility to the brand.
Addressing labour issue: News that spread that pressure and the negative working situation in supplier’s warehouse and factory which Apple outsourced went viral. The image of Apple Company will be compromised regarding labour treatment.
Diversification of supply chain partners: Apple got an enlarged depth and width of the product mixture. Apple is required to reduce the shortage risks of needed elements or other vendor challenges that can affect product production.

Explain The Five Most Important Components of Supply Chain Management?

Following are the five most crucial components of supply chain management:

Sourcing of raw products
Strategy development
Production
Distribution
Return

Apple Supply Chain Management Case Study: SWOT Analysis

The SWOT is acted as a strategic management tool that aids corporate managers to evaluate and establishing perspectives during environmental scanning. The main determination of SWOT is to facilitate the strengths of the organization by excluding weaknesses, purchasing opportunities and avoiding potential threats.

Strengths: Apple is a leading innovator among electronics brands, and it has been ranked among the top 50 companies in electronics since 2005 because of its innovative electronic devices. Great sales growth with each passing year, high brand recognition, effective and strong marketing team, and high-quality customer experience.
Weakness: The most common weakness of the Apple brand is its high price, incompatibility of different OS, unsuccessful anticipation, overdependence on iPhone and iPad, and defect in new products.
Opportunities: There is an extraordinary claim for new Apple products, mainly iPhones, Mac products, and PowerBook. Therefore, it indicates the high demand for products in the global market. This brand also has grown in the communication device market. Most people have faith that the upcoming iCloud invention will bring future income to the Apple organization. Therefore, to meet the high rising demands of iCloud services, Apple will develop its services to involve or adapt the more consumers.
Threats: Damage of reputation because of tax scandal, the evolving environment of electronic communication, android OS growth, and infringement of intellectual property rights.

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