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Apple runs what's known as a responsive supply chain, one that is built and operated for speed. What is a market responsive supply chain?The Market Responsive Process responds quickly to unpredictable demand patterns and can be used when supplying innovative products. ... Reacting quickly to early sales figures and market shares is the key to a successful supply chain in this situation. Is Apple supply chain really the No 1 a case study?Everything about Apple Inc is the talk of the town, for example, the new iPad, iPhone 5, Apple Map or even environmental and labor issues at its suppliers' facilities. Surprisingly, IT research firm Gartner ranks Apple Supply Chain as the best supply chain in the world for 3 years in a row. What are the factors that drive Apple's supply chain performance?Key factors attributing to their success include: putting their customers first, streamlining processes to create exceptional inventory management, outsourcing manufacturing, and by continuing to evolve their supply chain to adapt to customer demands. What steps you would take to improve Apple's supply chain and why?reducing the number of key suppliers involved in manufacturing, shipping and storing. requesting price reductions and asking suppliers to relocate closer to Apple's factories. reducing the number of sku's to approximately 26,000, to simplify and help develop more accurate demand forecasts. What is supply chain strategy?What is Supply Chain Management Strategy? ... SCM involves the flow of information and products between and among supply chain stages to maximize profitability. The major functions involved in SCM are the procurement of raw materials, product development, marketing, operations, distribution, finance, and customer services. Which supply chain is better efficient or responsive?Efficient supply chains are able to deliver products at a low cost, while responsive supply chains are capable of responding quickly to changing con- sumer needs. What makes Apple's supply chain a case study?A case study of Apple's supply chain One key aspect of Apple’s supply chain is its use of multiple suppliers for the same component. Reviews on this aspect of Apple’s supply chain strategy to examine the role that boards and directors can play in enhancing supply chain management and organisational performance. 11 September 2015 Which is better efficient or responsive supply chain?A responsive supply chain is distinguished by short production lead‐times, low set‐up costs, and small batch sizes that allow the responsive firm to adapt quickly to market demand, but often at a higher unit cost. An efficient supply chain is distinguished by longer production lead‐times, high set‐up costs,... Which is the best supply chain in the world?Surprisingly, IT research firm Gartner ranks the supply chain of Apple Inc as the best supply chain in the world for many years. Without a doubt, Apple Inc is the world leader in Innovation, Branding, Customer Service and Software Ecosystem. But, is Apple's Supply Chain really the number 1? Who is the Chief Executive Officer of Apple?Apple’s Chief Executive Officer, Tim Cook, has been described as a “supply chain specialist”. He is credited for streamlining inefficient areas of Apple’s supply chain and using inventory tracking mechanisms to reduce its number of suppliers and warehouses. Related Posts:This Paper A short summary of this paper 6 Full PDFs related to this paper
Managing Risk in the Global Supply Chain 2015 Supply Chain Top 25 Apple has received multiple awards for its supply chain strategy. Recently, for example, Gartner, a US-based research and advisory company, awarded Apple its inaugural “Masters” award after previously ranking Apple No. 1 on its “Top 25 Supply Chains” list for the past 5 years. One key aspect of Apple’s supply chain is its use of multiple suppliers for the same component. The Governance Leadership Centre reviews this aspect of Apple’s supply chain strategy to examine the role that boards and directors can play in enhancing supply chain management and organisational performance. Apple’s use of multiple suppliers for the same component in its supply chain strategyApple has an extensive network of third party suppliers in its supply chain. According to recent research, Apple has 785 suppliers in 31 countries worldwide, 349 of which are based in China. According to Apple’s “2015 Supplier List”, 97% of its supply chain (including procurement, manufacture and assembly) is accounted for by its top 200 suppliers. This would imply that 585 of Apple’s suppliers account for the remaining 3% of its supply chain, providing it with a significant degree of latent capacity. Apple has a number of exclusive long-term agreements with its key suppliers and uses prepayments to negotiate favourable pricing terms, secure strategic raw materials and guarantee high volumes of production. Apple has also diversified its supply chain to include new manufacturing partners in China and Taiwan. It has also secured multiple suppliers for key components relating to new products (such as the Apple Watch). In addition to diversification, Apple invests in customised manufacturing equipment and automated assembly and milling technology. It has also recently announced environmental programs with its Chinese manufacturing partners to offset carbon emissions and utilise more clean energy. Apple’s strategy of using multiple suppliers for the same component provides it with key advantages over its competitors. Commentators note that this strategy allows it to:
Apple’s Chief Executive Officer, Tim Cook, has been described as a “supply chain specialist”. He is credited for streamlining inefficient areas of Apple’s supply chain and using inventory tracking mechanisms to reduce its number of suppliers and warehouses. What can Australian boards and directors learn from Apple’s supply chain strategy?According to a recent report from Deloitte, organisations with effectively governed third party relationships can outperform their peers with an additional 4-5% Return on Equity (ROE). There are a number of ways in which boards can learn from Apple’s supply chain model to enhance their supply chain management and organisational performance:
“More progressive global organisations are now starting to demonstrate bimodal thinking around how to maximise the opportunities out of the third party extended ecosystem while managing the related risks at the same time”, suggests Deloitte. The GLC has previously interviewed Dr Richard Welford, chair of consulting firm CSR Asia, about the role of directors in managing supply chain risks. |