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Supply chain management - Business Management - Essay Example

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Introduction Apple Inc. was established in 1976 in Cupertino, California. Apple Inc. is a multinational company, which designs, makes and sells wide range of electronic items and computer software. The products which are produced and sold by the company include; Macintosh personal computers, Apple TV, iPads, iPods and iPhones…
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Supply chain management essay - Business Management
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"Supply chain management - Business Management"

Download file to see previous pages Other services produced and sold by the company include third-party application software and digital as well as networking solutions. The company has outsourced most of its manufacturing to China, Singapore, and Taiwan to reduce cost of production and concentrate in its core business of developing high end software. Apple Inc. has a wide spread global distribution network terminals in every continent. Company’s products are sold through online stores, retail stores, direct sales force and dealers. There are three hundred and thirty two Apple Inc. stores in the United States of America, United Kingdom, France, Australia, Canada, China, Japan, Italy, Germany, The Netherlands, Switzerland and Spain. The supply chain management at Apple Inc Supply chain management involves setting up of objectives, designing and implementing strategies to achieve the objectives as well as monitoring and evaluating all the processes and activities. The activities in the supply chain include but not limited to material sourcing and procurement, conversion of raw materials, collaboration between the company and channel partners; transportation of raw materials from producers to factory and transportation of finished products from the factory to the consumers. An effective supply chain achieves high sales and profits. Apple Inc. is company to reckon. This is because it has the most reliable and profitable supply chain. The supply chain meets customers’ needs on time. Furthermore, in its manufacturing process it delays competitors’ products from reaching the market. Goldman (2011) revealed that competitors of the company are being delayed from manufacturing their products because Apple Inc. contracted the world largest suppliers, who give Apple Inc. products a priority. This makes the company confident in its supply. The type of Apple’s Inc. supply chain is the dominant company. The company practice vertical integration in its manufacturing process, which enables the company to outsource several of its components. However, the company controls the software, hardware and processors. Apple Inc. uses it large size and vast resources to obtain deals with component producers and makes sure that the company’s component are made available to the company at all times. Furthermore, in its supply chain, Apple Inc. sells few products. However, it sells many other common parts to all its gadgets. This makes Apple Inc. supply chain the most perfected. In Singapore, Samsung makes central processing units, video processing chips while Infineon makes baseband communication gadgets. In Taiwan, there are six companies. Foxconn International manufactures internal circuitry; Primax Electronics makes digital camera modules; Umicron Technology produces printed circuit boards; Entery Industrial makes connectors; Cambridge Silicon makes Bluetooth chipsets, and Catcher Technology makes stainless metal casings. Figure 1: Apple’s Supply Chain Map Apple Supply Chain Singapore Taiwan United States China Source: Abilla (2007) In the United States of America, Broadcomm produces touch screen controllers and Marvell manufactures 802.11 specific parts. Apple Shenzhen in China assembles all hardware, package the readymade and store products as they await dispatch to various global markets. Make-buy decisions at Apple Inc The company outsources about 70 percent of its hardware components to other companies. There are a number of factors that dictate whether Apple ...Download file to see next pagesRead More
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