SCM Case Study - 8

Submitted By: Roshan S Andrews

Q1.) Give your views on the temporary hiring of workers by

contractors of Apple.
Ans.)
They hired workers from developing Asian countries such as
Indonesia, Cambodia, Myanmar, Vietnam and Nepal. Its good to give
jobless people job as they can feed their families and gain experience.
Though the work shift and pay is not that considerate but something is
better than nothing, instead simply sitting at their home countries its
good to work and make money. Also apple made it temporary
because they don’t need them full time and just when high labour
force is required. So I feel it’s a good thing overall.

Q2.)  Suppliers were given large volumes in orders but were squeezed
on price. Do you think it is a good strategy? Justify
Ans.)
According to apple it’s a good strategy as they get more quantity
at lesser price and since the orders are more suppliers are
keeping an inventory of 2 weeks. Thinking from the suppliers
end they are enjoying the profits as its huge quantity but
drawback is the inventory part. So strategy is good from the
point of apple.

Q3.) How did the supply strategies of Apple affect its competitors?
Ans.) Since apple worked closely with its suppliers to update
manufacturing processes and technology, they demanded a huge
volume of procurement of tools which was a bad impact on
competitors as they had to wait until apple got its material supplied.
This is how competitors was affected. The wait time increased.