Supply chain management refers to the management of flow of products, finances and data concerned with firms’ products or services. This includes procurement of resources to the delivery of the goods to the final customers. Supply chain also extends to the functions around the world trade which include management of international suppliers as well as global production process. This report will discuss about Apple Inc, which is a multinational company comes in technological industry (Apple, 2024). The company is famous for it’s electronically devices such as macbook, iphones, tablets, watches and various other products. The devices are known for its unique designs that are aesthetic and provide detail.
The report will discuss about supply chain information of the Apple that flows among suppliers, products, manufactures to the end users. The report will also highlight role that various transportation modes play with Apple’s supply chain management. They key features will emphasize on warehousing through supply chain as well as activities. The report will also talk about part that technology within supply chain and its improvement areas. Major point will cover risk and its impact on environment within supply chain and minimizing strategies.
Presenting The Supply Chain Information Flows Between Suppliers, Products, Retailers, Manufacturers And End-Customers
Apple has formed an entire ecosystem of various suppliers that support their operations. The company’s goal is to gain stellar goods and services with the strict timeframe. The company presents the better possible worth to the shareholders as well as customers. The firm is able to collect various components and parts from various locations and companies by using partnership and collaboration strategies to enhance its production and overall effectiveness in the global marketplace (Wisner et al, 2021). The iPhone 14 Apple’s product has given competitive prices through streamlining the supply chain as well as lowering distribution expenses. The firm’s supply chain techniques lets then react quickly to changes and customer demands.
Apple to accomplish its brand image they does not get stuck on own manufacturing alone. They have many suppliers in various countries and cities that procure components for production of company’s product. The firm releases its suppliers list on regular basis. They have also launched high standards for handling supplier connections globally. Apple suppliers list data on around 200 suppliers as well as over 600 productions facility. They put lots on efforts into tracking as well as monitoring its supply chain. These connections help them to make the technological giant a leader of the most successful supply chain management throughout the world. L G display supply OLED for the Apple’s product iPhone-14 pro max in the present year. The firm LG displayed issues after seizing the Apple opportunity. This also received an order for high value added panels supplied delayed because of production issues.
The rise in displays order put concentration as it means a rising role in Apple’s supply chain management. The case company has also been stuck on Samsung on make superior that Samsung displays supply 70 percentages to become constant its supply chain operations’. As displays are the most costly part in all Apple’s gadgets and devices (Okeagu et al, 2021). Taiwan is the major location of Apple’s supply chain, even though the suppliers within this area have major locations in various other countries.
Manufactures of case company source their components from all around the globe and offer the best devices at the lowest possible prices. These parts manufactures offer the glass screen, casings, memory chips and various other components’. Most of these providers send their manufactured goods to company’s manufacturing warehouses around the globe for extra manufacturing of iPhone-14 pro max. At ee.co.uk customers can buy the range of latest iPhone 14 pro max that include great deals of new models. Even though they are located in many areas throughout the world, nevertheless all these manufacturing services are the component of only 2 firms that is Pegatron and Foxconn (Coyle et al, 2021). The firm has implemented a range of strategies to ensure that effectiveness of its international supply chain. This includes just in time manufacturing that provides firm in reducing inventory expense as well as lean manufacturing techniques that provides company in cutting waste as well as enhancing productivity.
The Role That Different Modes Of Transport Play In The Chain
In the logistics and supply chain, there are mainly four modes of transportation. It is road, rail, sea and air. The transportation mode is used for the movement of finished products to the distribution centers, sending it to retail stores than to customers. The Apple Company also uses a range of transportation air, sea and ground transportation to ensure that products are delivered on time. Apple is a well-liked, valuable and popular company in the world. The effective and efficient supply chain strategy of the Apple is also a reason of success of the company. The mode of transportation is responsible for the distribution of Apple products. To control and coordinate the movement of Apple products, the company hired logistics providers and Third Party Logistics Company.
Air transportation: Air transportation means transporting products by air through aircrafts and airplanes. It is fastest and suitable means of transportation therefore, it is best for the Apple Company to supply or distribute product which need fast delivery. This mode needs shorter time for delivery and it is secured mode because it deliver good in perfect condition.
Ocean transportation: The ocean transportation refers movement of products through waterways (Frazelle, 2020). The Apple Company is shifting a mode of transportation to ocean transportation to reduce the carbon intensity. According to Apple, transportation through ocean emits 95 percent less carbon emission than air transport. The ocean transport also known as Maritime or waterborne transport.
Ground Transportation: It refers to use of transportation for movement of products from one place to another on land. The two main ground transports are rail transport and road transport. The Apple Company uses this transport for movement of Apple products from Apple warehouse or storage to the Apple stores that are located at different places in the United Kingdom.
Key Warehousing Or Storage Points Throughout The Chain And Their Purpose And Activity
Warehouse or storage is important requirement for the business; it creates a direct link between production and distribution in the supply chain of the Apple Company. The warehouse plays a crucial role in supply chain as the final produced goods are store at warehouse until it reach to retail stores or its alternative customers. Warehouse kept the product with safety and security until it reaches to its final destination. When assembling process completed and all iPhones packaged, the company shipped it to US Apple warehouse and other warehouses in the world such as China, Japan, Singapore, The Czech Republic and the United Kingdom.
Inventory management: It aids in inventory management, it ensure availability of Apple iPhone 14 Pro. Effective inventory management is essential for the satisfaction of the customer, for this warehouse play important role. Warehouse helps in keeping a balance between enough volumes of Apple iPhone 14 Pro products and other Apple products in stock so that efficiently delivered a product when customer place order (Richey et al, 2022). Warehouse is also important because it prevent company to develop new products until the previous stock sold out.
Logistic Planning: Warehouse justifies the logistic planning because it provides one location for storage of all Apple products. The one storage means less transportation is required to synchronize the supply chain. It helps to oversee all aspects of business and improves the performance.
Effectively Fulfill Orders: Warehouse helps in fulfillment of order rapidly and precisely, and dispatched of Apple products on correct time. Thus, warehouse plays a central role in the supply chain. Inefficient functioning of supply chain makes a big impact at each stage of the chain. By fulfilling orders on time, warehouses improve performance of Apple Company and also satisfied the customers (Barykin et al, 2021). Also, warehouses needs for keeping the products with safety and security.
Defining The Role Of Technology Within The Supply Chain And Key Improvement Areas
To increase efficiency and innovation, the Apple Company`s supply chain uses technology. The Apple Company has developed various supply chain visibility and many software solutions. Apple uses variety of different technologies for the management of its supply chain. It uses machine learning, enterprise resource planning system (ERP), supply chain management system (SCM) and Artificial intelligence in logistics.
Enterprise Resource planning System (ERP): The Apple Company uses this system for tracking and managing its inventory level. ERP software helps in automate and amplify important business processes like company financial, supply chain, procurement and human activities. These systems remove data duplication and provide quality data.
Artificial Intelligence: The Apple Company uses artificial intelligence in its Apple iPhone14 Pro and other devices (Svanberg, 2020). Siri in Apple phone is an example of Artificial Intelligence in the Apple device. Siri control several voice and queries that based on tax, User of the device can request Siri for playing music, setting timers, for giving information of weather and so more.
Machine Learning: Apple use machine learning so users can effectively interconnect with Siri, search photos, see notifications for events and so more. Machine learning is a technique or system that learns without any instructions. It is a well-known technology.
The Apple Company needs to make improvements so that able to make changes with the changes in the technology (Falagara Sigala et al, 2020). In current times, the technology changes quickly. For this the Apple Company must give emphasis on research and development so can efficiently able to adopt the technology for its upcoming Apple products. The improvement in technology in supply change helps the company in meeting the demand of consumer at less cost. For this Apple Company must undertake automation and AI.
Key Areas Of Risk In The Supply Chain And Options To Minimize
Many firms have faced disruptions within its supply chain of key parts that hit Apple halting business for long period of time. Various economic uncertainty, geopolitical tensions as well as growing inflation has debilitated Apple production. The iPhone-14 makers require being supple as it spreads its manufacturing basis throughout the locations that are effected by global warming issues. Apple has understood that carbon neutral is harming its supply chain disruptions cross offices and stores and taken decision to reduce emissions within their production process (Culpan, 2023). By the year 2030 all the devices and gadgets of Apple will have net zero carbon within its supply chain operations. The power of extreme weather, economic impact and carbon emissions are harming manufacturing process of Apple. The Apple has the most transparent supply chain that worked on environmental impact on its stakeholders well as planet.
Apple has also faced various logistic issues in terms of warehousing, inventory and transportation management risk. To minimize supply chain logistic risk Apple has adapted their transportation modes as well as leverage real time data. Apple uses a range of transportation methods to move its good and components that includes sea, air as well as ground transportation. The firm also uses logistic supplier as well as third party logistics to handle as well as collaborate the handling of its goods and materials (Dutta et al, 2020). To most common means for cyber-attack risk that affects Apple supply chain management is by breaches and malware attacks. Data breaches are the most dangerous cyber security threat faced by firms within their supply chain. Apple offers layers of security and safety to make sure that all applications are free from malware. The devices have encrypted features to safeguard customer data as well as allow remote wipe in the situation of device loss or theft.
The Impact On The Environment And Suggestions To Improve
The production of Apple’s electronic devices needs the extraction of minerals like copper, gold that contribute to deforestation and destruction in supply chain. The manufacturing of devices in technological industry faces numerous amount of greenhouse gas. Apple should deeply commit to be responsible sourcing of its raw materials. The firm needs to safeguard the well-being of planet and stakeholders involves within the process of supply chain. Apple must be in touch with supply chain that will encourage then to invest innovation and capital for producing sustainable solutions. They create a code of conduct with their supply chain operations to tracks and monitor their work.
Most of the major energy consumption of cloud computing data is devoted by information technology industry. Electricity utilized among corporate facilities of Apple has been raised at fast pace. Already carbon neutral for its emissions, the firm use innovative tools and techniques to help and support supply chain team towards its ambitious by year 2030 to be zero carbon emission firm for its every devices (Park and Li, 2021). Apple is now focusing on expanding progress to decarbonize its internationals supply chain with more than 250 manufactures now responsible for using 100% clean energy for its production.
Around every year many electronically devices are superfluous as a product smash and are thrown away. These devices are considered has e-waste as well as becoming threat for environment and people. The firms should introduce E-waste recyclable methods to reduce negative impact of environment and society as well. Apple has introduced product take back and recycle initiative (Hove-Sibanda et al, 2021). They recycle old products of customers for free of cost that enhance their corporate social responsibility and provide benefit to the society. They also launched new details on the recycling innovative and clean energy within its supply chain. The company’s products are intended to be long lasting as well as durable to the further extend of its lifecycle. Apple devices are created and design to be more long lasting and made from durable materials that have tested within their labs. They create products that are better for planet as well as for all its stakeholders connected with them within its supply chain management.
Transportation is a significant part of supply chain process in almost every industry. The supply of products from one place to other place needs more energy to run the supply chain procedure (Ross, 2023). This majorly releases carbon emissions throughout transportation and logistics process as they are non-renewable fuels that harm the environment and public health. As the companies are focusing on building a sustainable environment by implementing green transportation techniques that is essential for mitigating carbon emissions as well as form a sustainable supply chain management (Loiseau et al, 2020). Apple by optimize routes as well as focusing on fuel efficiency can create a positive impact of atmosphere. Firms should use technology as well as data analytics to use optimize delivery paths. They can avoid traffic and stop the use of mileage to enhance and reduce carbon emissions from fuels.
Apple is aware of this and is actively functioning to minimize its carbon footprints within its logistics and transportation services. They have also made shifts from air to ocean freights that result in minimizing transportation carbon emissions. The logistic team of the firm has plays an important role in this change and has designed the packaging of the iPhone 14 pro max to be 100% fiber based as well as compacted (Maharani and Mursitama, 2023). Apple by focusing on low carbon shipping modes such as ocean transportation techniques can contribute to minimize transportation and logistics related carbon emissions.
Figure: Electricity consumption at corporate facilities of Apple Inc
How Logistics And Supply Chain Management Can Add Value To The Product
As businesses strive to meet the changing demands and needs of customers as well as to face changing business requirements, good supply chain is essential to add value to the product. Better supply chain management helps Apple to reduce its costs by streamline procedure, optimize inventory level and eliminate waste. Apple by partnering among manufacturers, suppliers and distributors can reduce cost and time. Supply chain disruption impacts the customer satisfaction (Pietrzak et al, 2020). Apple’s effective supply chain makes sure that iPhone 14 is available when customers require that lead to fast order fulfillments. This also result in enhances customer satisfaction that leads to repeat purchase of Apple’s product. Effective supply chain also offers competitive gain to Apple’s product that enables company to differentiate their products from various competitors within same industry. This allows helps Apple to enhance fast delivery and improve quality of the products so that they can react of market changes quickly and introduce new products efficiently.
Effective supply chain and logistic also helps Apple to recognize and reduce risks and issues related to production, sourcing as well as distribution of goods. The firm by diversifying supplies implement unforeseen event plan as well as track key performance indicators can minimize the effect of disturbance of political volatility, natural disasters as well as supply chain breakdown (Oyenihi et al, 2022). A large amount of information can be gathered in supply chain management and logistics that can be enhanced for informed choices. The company has implemented data analytics, machine learning and artificial intelligence allows gaining valuable insight from supply chain information. These data helps them to optimize forecast demand, inventory level and enhance overall business operations of Apple products.
The Apple is also focusing on maintaining better connections with its supply chain stakeholders and offer greater flexibility in respond to need surges. The firm’s huge manufacture capacity make possible for them to propose product where and when clients want them. This helps the corporation develop its performance within its supply chain and logistics management.
Inventory represents major proportion of Apple’s investment. The company having optimized inventory level on the basis of particular demand forecast as well as sales data can help to strike balance among having sufficient stock to meet customers’ needs as well as reduce excess carrying expenses (Loiseau et al, 2020). Apple by optimizing cash flow by efficient inventory management can provide resources in an enhanced ways and also spend in expansion initiatives.
Conclusion
In conclusion, rising globalization as well as evolving customer requirements is putting stress on firms to improve its supply chain management. Apple must continuously redesign its supply chain operations to mitigate and manage risks. Apple by implementing right techniques will allow them to access the revenue and development of the supply chain management. The firm by checking on the quantity of inventory can forecast demand and sales to better management. They should also reduce carbon emission and unethical activities that harm their reputation and society that improve their supply chain management and logistic systems.
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References
Books and Journals
Barykin, S.Y., Bochkarev, A.A., Dobronravin, E. and Sergeev, S.M., 2021. The place and role of digital twin in supply chain management. Academy of Strategic Management Journal, 20, pp.1-19.
Coyle, J.J., Novack, R.A., Gibson, B.J. and Langley, C.J., 2021. Supply chain management: a logistics perspective. Cengage Learning.
Dutta, P., Choi, T.M., Somani, S. and Butala, R., 2020. Blockchain technology in supply chain operations: Applications, challenges and research opportunities. Transportation research part e: Logistics and transportation review, 142, p.102067.
Falagara Sigala, I., Kettinger, W.J. and Wakolbinger, T., 2020. Digitizing the field: designing ERP systems for Triple-A humanitarian supply chains. Journal of Humanitarian Logistics and Supply Chain Management, 10(2), pp.231-260.
Frazelle, E., 2020. Supply chain strategy: the logistics of supply chain management. McGraw-Hill.
Hove-Sibanda, P., Motshidisi, M. and Igwe, P.A., 2021. Supply chain risks, technological and digital challenges facing grocery retailers in South Africa. Journal of Enterprising Communities: People and Places in the Global Economy, 15(2), pp.228-245.
Loiseau, E., Colin, M., Alaphilippe, A., Coste, G. and Roux, P., 2020. To what extent are short food supply chains (SFSCs) environmentally friendly? Application to French apple distribution using Life Cycle Assessment. Journal of Cleaner Production, 276, p.124166.
Maharani, D. and Mursitama, T.N., 2023. Implementing Ethical ‘Code of Work Ethics’: A Case Study of Apple and Foxconn Supply Chain. In E3S Web of Conferences (Vol. 426, p. 02152). EDP Sciences.
Okeagu, C.N., Reed, D.S., Sun, L., Colontonio, M.M., Rezayev, A., Ghaffar, Y.A., Kaye, R.J., Liu, H., Cornett, E.M., Fox, C.J. and Urman, R.D., 2021. Principles of supply chain management in the time of crisis. Best Practice & Research Clinical Anaesthesiology, 35(3), pp.369-376.
Oyenihi, A.B., Belay, Z.A., Mditshwa, A. and Caleb, O.J., 2022. “An apple a day keeps the doctor away”: The potentials of apple bioactive constituents for chronic disease prevention. Journal of Food Science, 87(6), pp.2291-2309.
Park, A. and Li, H., 2021. The effect of blockchain technology on supply chain sustainability performances. Sustainability, 13(4), p.1726.
Pietrzak, M., Chlebicka, A., Kraci?ski, P. and Malak-Rawlikowska, A., 2020. Information asymmetry as a barrier in upgrading the position of local producers in the global value chain—Evidence from the apple sector in Poland. Sustainability, 12(19), p.7857.
Richey, R.G., Roath, A.S., Adams, F.G. and Wieland, A., 2022. A responsiveness view of logistics and supply chain management. Journal of Business Logistics, 43(1), pp.62-91.
Svanberg, M., 2020. Guidelines for establishing practical relevance in logistics and supply chain management research. International Journal of Physical Distribution & Logistics Management, 50(2), pp.215-232.
Wisner, J.D., Tan, K.C. and Leong, K., 2021. Principles of supply chain management: A balanced approach. South-Western, Cengage Learning.
Online
Apple, 2024. Online. Available through. :<https://www.apple.com/in/?afid=p238%7Cs8Vs8GkTq-dc_mtid_187079nc38483_pcrid_680861337332_pgrid_112258962467_pntwk_g_pchan__pexid__&cid=aos-IN-kwgo-brand--slid---product- >
Culpan, T., 2023. Online. Available through. Apple’s Supply Chain Is on a Collision Course With Climate Change. Online. Available through. :https://www.bloomberg.com/graphics/2023-opinion-apple-supply-chain-climate-change/#:~:text=via%20Getty%20Images-,Apple's%20Supply%20Chain%20Is%20on%20a%20Collision%20Course%20With%20Climate,most%20impacted%20by%20global%20warming.&text=Few%20global%20multinationals%20have%20been,climate%20change%20than%20Apple%20Inc.
Statista, 2024. Electricity consumption at corporate facilities of Apple Inc. Online. Available through.< https://www.statista.com/statistics/531938/electricity-consumed-by-apple-inc-globally/>
