SUPPLY CHAIN Management of apple products

OUTLINE
Back ground of Apple company
Apple supply chain
Supply chain issue
Conclusion

Apple background
Industry: Computer hardware,

Computer software,
Consumer electronics,
Digital distribution
Founded: April 1, 1976 by Steve Jobs,
Steve Wozniak, Ronald Wayne
(incorporated January 3, 1977 as Apple
Computer Co., Inc
Headquarters: Apple Campus,The headquarters ofAppleon
Infinite Loop with the current
1 Infinite Loop Cupertino,
Myriadcorporate font
(introduced in 2002) and a
California,U.S.

light blue variant of the Apple

Apple background
Number of locations : Total of 416 stores, 162 outside the
U.S.
Area served: Worldwide
Key people : Arthur Levinson (Chairman)

,Steve Job, Tim Cook (CEO)

Products Products: Mac, iPod,
iPhone,
iPad, Apple TV,
computers,laptops.

Range of products

Tricks apple uses

o innovative production techniques

o buy up all available air freight handicapped rivals

o manufacturers are busy with Apple orders rivals like HTC fall behind

o ship product in tomato boxes to avoid detection

APPLE SUPPLY CHAIN

SUPPLIERS AND MANUFACTURERS

Apple products and components are

manufactured by a wide variety of

suppliers around the world (about 300
suppliers).
The final assembly of most products
occurs in China.

CONTINUED..
Entery Industrial: The Taiwan facility manufactures connectors.
Cambridge Silicon: The Taiwan facility manufactures Bluetooth chipsets.
Umicron Technology: The Taiwan facility manufactures printed circuit

boards.
Catcher Technology: The Taiwan facility manufactures stainless metal
casings.
Broadcom: The U.S. based facility builds touch screen controllers.
Marvell: The U.S. based facility builds 802.11 specific parts.
The Apple Shenzhen, China: facility assembles the hardware, holds
inventory, and handles thepick, pack, and shipsteps of thefulfillment
process.
South Korea-based LG Display Co., a supplier of screens used in iPads
and iPhones
According to Taiwan Economic News, Taiwan-basedPetgatron has outbid
Foxconn for production of Apple's next-gen iPad

Suppliers Responsibility at Apple

Apple is committed to ensuring the highest standards

of social responsibility wherever its products are made.

Therefore, Apple insist that its suppliers provide safe
working conditions, treat workers with dignity and respect,
and use environmentally responsible manufacturing processes.

DISTRIBUTION
Apple

Retail

Online

Customer

Customer

Stores

Stores

Third-Party

Customer

APPLE RETAIL STORE

APPLES SCM
They have taken operational excellence to a
level never seen before.
Driving factors of their
effective SCM

1. Closed ecosystem
2. Big discounts due to Apples volume
3. Mentality to spend exorbitantly

CONTINUED..
4. Apple engineers work close with suppliers
optimize industrial process
5. Focus on a few product lines do little in the way of
customization

SCM GOAL
o Increasing effectiveness and efficiency

operational excellence
o Decrease operational costs
o Communication and relationships in a

network of companies

CONCLUSION
Gartner annouces rankings of its 2011 supply

chain top 25:

Apple help onto the No,1 position for the fourth
year in a row on the basis of continued killer
financials and top of the line voting scores.
Apple annual report show that:
The Companys strategy also includes
expanding its distribution network to effectively
reach more customers and provide them with a
high-quality sales and post-sales support
experience.

THANK YOU