Anand Kumar Chaudhari ( 19PGDM-BHU009)

Apple Inc: Managing the global supply chain Case Analysis

About the Company:

➢ California Based Company Founded in 1 April 1976 by Steve Jobs, Steve Wozniak, Mike
Markkula.
➢ Apple company designs and develops as well as sells consumer electronics, computer
software.
➢ In the beginning it used to design personal computer but later it started making hardware
products also like , iPod, iPhone ,Smartwatch, Mac Book and it has it own operating system.
➢ With 160 Billion dollar in cash in February 2014, the company was well capitalized.
➢

Apple has a very strong supply chain and logistics. Because of its logistics and supply chain
management it’s one the best company in the world which satisfy it’s customer. It has employed
best practices of globally supply chain management to ensure the operation of company should run
smoothly

Challenges/ Issues .
➢ Unable to offer the service to other players in the market: Just because of it the bargaining
power has been reduced of supplier and result the reduce the profit margin.
➢ Competition challenges
➢ Technology Challenges
➢ Poor inventory management in the past years when company was in loss
➢ When IBM came in the market Steve Jobs left the company which caused a huge loss to the
company.

Management Of Supply Chain Operations and its logistics: Apple has very strong
Supply chain management which deals in the market and demand of the product. It has a very
strong logistics also which allows the company to manage the inventory as well as transportation
cost.

➢ Internal control of entire supply chain

➢ Real time coordination of supply chain
➢ Limited configuration of the Apple’s products
➢ Good procurement Strategy
➢ In present good number of supplier.
➢ Just in Time
➢ Coordinated with so different of stakeholders.
➢ Intermediate Warehouses
➢ Retail
▪ 424 retail stores in 16 countries
▪ Online stores in 39 countries
▪ High customer footfall locations
▪ High quality of customer experience