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This success could be due to the increasing amount of supply chain managers reporting to the CEO of a company rather than to the manufacturing department, a trend across businesses (Allen, 2010). It has been suggested that the supply chain for Apple involves ten steps in four different countries, which are Singapore, Taiwan, the US and China. Taiwan provides most of the manufacturing components for an iPhone (Apple’s biggest seller ), with six different elements being produced here – the digital camera modules, international circuitry, industrial connectors, silicon Bluetooth chipset, technology printed circuit boards and stainless metal casings (Lyons, 2010). This encourages us to believe that the supply chain manager believes that Taiwan is the cheapest and most efficient supplier of many of the components for the iPhone and other Apple products. It also means that there is a bottleneck for the supply chain, in that if there were to be any economic issues or disasters in Taiwan, then the supply chain for the iPhone would be severely disrupted and there would be problems in the supply of these products. Essentially, the supply chain manager at Apple feels that the benefits from producing many components in Taiwan (cost and efficiency) outweigh these dangers. China is the location in which all these components come together to be assembled, suggesting that the country has a very cheap labour rate compared with the US, and the shipping costs from this country are low enough for the cost of labour in this country for this to be the most efficient method. All of this information suggests that Apple uses a vertical integration system for their Supply Chain Management (Lyons, 2010). A vertical integration system is one where most of the hardware components of a product are bought from a variety of different manufacturers which are all owned and controlled by the central company – in this case Apple. This helps to avoid any hold-up from trying to integrate many different companies, and it also stops the different pieces of hardware being used by other companies, ensuring that the end product is something completely unique – again, something very important to Apple. The use of a manufacturer owned by the central company also ensures that the data chip, or processor, or other product, can be manufactured exactly according to company specifications, ensuring a greater specificity. This can be a response to the make-buy decision. The make-buy decision The make-buy decision is essentially a choice between outsourcing and manufacturing (Probert, 1997). It has been suggested that the decision is easy, and that a company should outsource any components that are not critical to the product’s success, do not require any specialised design or manufacturing elements, and are not core to the company’s future plans and central products (Burt & Burf, 2009). There are many other ways of making the decision, one of which is known as the contribution-per-constraint module (CPCM) that relies on knowing and analysing the constraints of the component (Gardiner & Blackstone, 2007). In this case, the Supply Chain Management team at Apple have decided that it is best to make many of the components (or
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The collaborative effort of the Apple and the Skyway is connected with for the supplying and delivering of products in various countries. The high tech global logistics and the supply chain in the Apple Inc are due to the integrated supply chain collaborations with the various leading Inc, which are flexible and good at building rapport with the rapid changing global market, and the user friendly nature of the internet and the electronic media.
The company proudly produces more than 4billion packsof medicine and caters to almost 6 major diseases such as asthma, virus control, infections, mental health, and many more (GSK, 2012). The company has a mission to help many individuals through innovation in the field of medicine.
Better collaboration in turn means greater communication. When firms communicate effectively (even in diverse geographical parts with different cultural backgrounds) and given that these firms are customer –focused, then knowledge on the customer value is created.
The author states that the concept of ethics in supply chain management was activated when BBC Panorama exposed the unethical supply chains of sports and clothing companies such as Nike and Gap. These companies hired under-aged Cambodians at minimum wages in order to keep down prices for the end users.
Furthermore, Apple Inc. design and develop various software. The software is Mac Os X, Mac Os X Lion and iLife software package. It also produces and sells electronic accessories such as portable digital music players, storage devices, speakers, printers and headphones.
Both the supply and sales management functions of the company of high scale physical products like computers and I-Pods are conducted based on a virtual interface with the suppliers and consumer groups. It is found that the company earns a significant amount of revenues of around $1billion on an annual basis through conducting of sales of the computers and I-Pods through the online store.
Particularly, with the increase on globalization, supply chain has taken a new direction as organizations all over the world are seeking to outsource to developing countries where the cost of production is low. Fortune’s Best companies such as Wal-Mart, Porsche, Dell and also Apple have outsourced their supply chain management to Asian countries including China.
Under systematic ideology, an ideology is considered the major motivating factor of human behavior. The conceptions in the ideology are depicted as coming in sets of characteristics and then these sequence forms a system. In system ideology studies people try to discover and understand the world without making changes to it.
According to the paper the critical analysis of the supply chain management of Apple iPhone has demonstrated that the organisation utilize exceptionally short lead-time to introduce new model for iPhone in the global market. The organisation annually introduce new product and bi-annually upgrade major functions.
Strategic management refers to the formulation and application of the major initiatives, objectives and goals as decided by the top management of a company on the behalf of the owners. The formulation and implementation of strategies is done by evaluating the external and internal factors affecting the business.
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