Sunday, August 16, 2020

Apple and it's supply chain

Hello readers!! I am Madhumitha.Do you know why Apple always tops Gartner's Supply Chain.This is mainly because of Apple.Inc has good relationships with supply chain partners.The broad production capacity of Apple, helps them to produce goods where and when customers want them.This blog helps to know more about.Hope its interesting. 

Apple is known for its innovation and groundbreaking architecture. The manner in which Apple manages its inventory is also a factor that has brought success. Apple's supply chain has led to Gartner's Supply Chain Top 25 list since 2013.For years Apple has stood at the forefront of its industry. Although many people are familiar with the products and branding of the tech giant, less is understood about the inner workings of its supply chain. Apple is widely regarded as an innovative leader in the supply chain sector , providing inspiration to other brands and forcing the competition to stay up or fall behind.



It has great inventory management 

Apple was still aiming for high inventory turnover, making a move to not rushing sales in 2011. The move was introduced with the launch of the iPad 2 and consisted, given the customer queues in front, of selling the much-awaited items the second day after they were shipped to shops. This action was taken to ensure the smooth operation of inventory monitoring, so there are no errors leading to inaccuracies in inventory.This also contributes to the development of ample manufacturer demand, such that other rivals can not order the components and thus restrict imitations.

Strong supplier relationship

Apple is continually innovating, its suppliers enjoy a certain degree of continuity and if a product is ineffective or suffers from delays, suppliers can rest assured that another request will be made for another product. To ensure that these suppliers have the expertise and knowledge they need to continue to compete in an ever-changing market , Apple provides training and upscaling incentives. .While the efficacy and productivity of outsourcing has become more centered in recent years , Apple provides evidence that it can be a strategy for the company to outsource most of its production to China, providing them with the revenue required to introduce new and improved products very quickly over the years.

Lessons to learn from Apple's supply chain

When customers are more conscious, businesses that concentrate on environmental and social responsibility will benefit from an improved credibility and a strengthened brand image — all while being well-positioned for the future and ready for any possible shifts in legislation or market demands.For example, streamlined inventory can make sense for other tech businesses and it makes sense for companies of all kinds to strengthen relationships with suppliers, helping to ensure reliability and transparency in the end.

Impact of the pandemic on the Apple's supply chain

Apple depends on many suppliers in China, which means it has faced difficulties in coming back from the global corona virus pandemic. Operations are slowing in most of the world in the aftermath of lock downs and some regions are facing longer delivery times. Analysts have largely reduced their shipping estimates for the first half of 2020, with projections still uncertain for the rest of the year. It remains to be seen whether the disruption will affect the iPhone 12's launch date, with some reports claiming that the production is on track and others claiming that it may be delayed by several months.

        As we step into an unpredictable future, the biggest challenge faces the creative supply chain of Apple, with experts and how its supply chain adapts to this unparalleled disruption.

Happy Learning😊

1 comment:

  1. What are you thoughts on the report that Apple is shifting is manufacturing on high end iphones to India ? Is it a good move on the grounds of supply chain ?

    ReplyDelete

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