Apple Inc Supply Chain

Apple Inc has a supply chain that is analytical and helps it in discovering business activities by creating a competitive advantage as well as value for its products. While this company continues to enjoy high returns in the market for its unique product, this paper will analyze its supply chain and business strategies, cost approach, and methods which are used to measures its logistics and financial performance.

Supply chain and business strategies

Apple Inc. has an extensive network of supply chain that allows them to obtain raw materials, and it is ranked among the first 200 suppliers globally. The company has a large number of the vendors located in Japan and Asia where there is a large market for its products, and therefore, based on its economic power, Apple is benefiting from long negotiation clout concerning its distributors (Apple Inc, 2017). Moreover, the company has established high-quality regulations for its suppliers to maintain the highest originality rules for their products and services. Besides, Apple Inc has implemented smarter techniques to speed up procurements process and reduce storage costs and requirements. Ultimately, by managing an extensive supply chain involving both indirect and direct channels the company has managed to control their materials effectively.

Total Cost Approach

Apple Inc has a multi-pronged total cost approach which involves providing a variety of goods, emphasizing on a high end products , developing an effect of the commodities that make customers spend more for new, and priority to revenues over the market share (Apple Inc, 2017). Consequently, Apple continuously introduces premier commodities and charges a high price. The less- expensive items of this company are priced amidst the range with the high originality and customer experience. Through, this cost strategy, Apple has significantly increased its sales volumes in the past years.

Methods used to measure its logistics and financial performance.

Apple’s operations management ensures all areas of the business are working effectively and efficiently. To determine it is logistic and financial performance, the company has streamlined its supply chain (Lashinsky, 2013). For instance, the firm has automated its processes and continuous monitoring of distributors. This surveillance examines the provider productivity and capacity as well as its conformity with Apple Supplier Code of Conduct. Ultimately, the aspect of automation serves as the dominant power of Apple’s strategy to logistics management.

In summary, Apple Inc has a robust supply chain network that continues to drives its financial success. The company has many effective strategies which effectively coordinates its logistics including the automation of the supply chain that ensures all suppliers meet the minimum requirements of the company to maintain the quality of their products.  Lastly, inbound and outbound logistics techniques have enabled Apple to remain the leader in the industry through the provision of high- quality products in the market.

References

Apple Inc. (2017). Form 10-K, annual report, filing date Nov 3, 2017. Secdatabase.com. Retrieved Nov 27, 2018.

Lashinsky, A. (2013). Inside Apple: How America’s most admired and secretive company really works.