Apple Inc managing a global supply chain Harvard Case Solution & Analysis

 Apple Inc managing a global supply chain Case Study Solution

Apple managed a global supply chain with innovative products in the United States, outsourced mechanized in Asia and mechanism sourced from suppliers around the world. The Company was well capitalized; in spite of the economic achievement Apple's stock was at $524.47 on February 28, 2014, almost 24-25 percent below the $700 reached in 2012. The Company launched a series of Macintosh computers such as Quadra, Centris, and Performa but it failed to gain the competitive position in the market. Apple Company also suffered from a view that its machines were more luxurious than equivalent Windows PCs. The company has weakened the operating system and also inventory management.

Apple Company faced some of the challenges and problems with related to supply chain process. The company has the significant amount of stockpiles with respective to its supply. Apple Company was mostly dependent on its partners rather than its suppliers. For resolving the supply chain, Problem Company developed new technologies and invested heavily in Research and Development (Centralized R&D). Total R&D spending was about $4.5 billion in 2013 which is higher from $3.4 in 2012 and $2.4 billion in 2011 so for Apple captured 60 per cent as gross margin and suppliers.

The company uses Just-in-time method to ensure that products could be made more quickly and more cost efficiently. Apple's supply chain was ranked at number according to Gartner Group. Apple's design was unique because of a single manufacturing process. Apple was situated to ensure a high-quality buying knowledge and also attract new customers.

 

Introduction

Apple's suffered a lot and didn't beat IBM's growth in the USA. Apple's retail partners such as CompUSA and Sears didn't have many resources to displaying its product correctly. Apple suffered mainly because of the managing cost problem because machines cost was for greater than the Window PCs. The company had inadequate operating and inventory managing control, and Apple Company failed to estimate the original demand of the consumers and due to this company leading to both stock-out and overload list.

Apple launched iMac computers as a line of revamped PCs that focus on design that was easy to carry. By May 2001, Apple announced to open its retail stores to educate customers and also gain the competitive position in the market by growing market share. By 2004, Apple established its competitive position and also gain better control over its supply chain by working with new suppliers for which Apple would present upfront capital in return for volume commitments and also lower price per unit. Due to high growth in Apple, allowed it to work with its suppliers to launch a variety of new products containing significant technological development, like iPod Video, iPod Touch and also iPhone by the end of 2007.

Apple's Supply Chain for its iPhone product

Apple's iPhone supply chain was global. Research and development stand in the United States, having 156 suppliers, assemblage operations in China and retail stores, some of which retail stores were its Apple-branded stores.

Apple's management team kept a short new product development cycle. The new product expansion subdivision coordinated with a variety of stakeholders, including internal groups such as hardware, software, and production. Contrasting other electronics manufacturers subcontract the complete production and management of supply chain to a third party service provider such as Solectron, Apple spends months to be close to suppliers and manufacturers because Apple designers worked close nearness with vendors.

Creative design and engineering were handled in California, where Apple produced new technologies and also acquired licenses for intellectual property. Apple was highly incorporated with centralized research and development and accounting for the whole company. Apple products controlled key mechanisms that were often sourced from a single producer.

The supplier at Apple was frequently out of supply because of overwhelming demand to counter the supply issue; a piece of Apple's procurement strategy was to purchase suppliers' production capacity to make sure the stable supply of essential parts. The last assembly of the iPhone 5 occurred in China. Foxconn (Apple subcontractor) founded in 1974, unique manufacturer design for clients like Apple, Sony, Nintendo, and BlackBerry. Apple was facing a $1 billion backlog of orders that frustrated the management team.

Apple Inc managing a global supply chain Harvard Case Solution & Analysis

 

The firm principal focus was to improve supply chain even by using high inventory or software. Moreover, Company uses reverse logistics system. Management revised logistics that contributed to Apple's success in term of cost and also customer service experience. Apple's management of its logistics system extended to packaging devices in open boxes to avoid detection and monitor every hand off point to check that every unit was accounted..............

 This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Share This

SALE SALE

Save Up To

30%

IN ONLINE CASE STUDY

FOR FREE CASES AND PROJECTS INCLUDING EXCITING DEALS PLEASE REGISTER YOURSELF !!

Register now and save up to 30%.