The Supply Chain and Operations Management

The term “supply chain management” refers to the total network of a firm and its suppliers, as well as the goods they create and sell. The essay will examine the general structure of the supply chains for the Samsung Galaxy and the iPhone, both of which were made by the Samsung Company and Apple, Inc.

The iPhone is a creation of Apple.Inc, and the display is 3.5 inches. The mobile device has a multi-touch screen interface with a 160 pixel per inch resolution. The phone is not integrated with the keyboard and stylus which differentiates from other smartphones. Other features comprise of the automatic WIFI detection networks. In contrast, Samsung galaxy is manufactured by Samsung Company, the product is featured with the hardware like keyboard, unlike iPhone. The first Samsung galaxy was introduced in the market when iPhone 3GS had just been launched.

Overall Design of the Supply Chain

Polat and Gungor (2016, p.150) assert that Samsung likely to enhance it is the success when the iPhone sales increase. Polat and Gungor (2016, p.151) further reiterate that for every $1,000 Apple makes form the $1,000, Samsung galaxy generates $110. The idea is a reflection of the rivalry between the two mobile manufacturers since one has more of unusual supply chain design in the business. The two technology giants are striving to lure customers to purchase their products, But Samsung galaxy is likely to make more sales from the sale of the memory chips and screens since Apple relies on these products to produce the iPhone. iPhone and Samsung are the two main Smartphone being sold in this contemporary world. Moreover, Samsung and Apple expect to be the most profitable organization s in 2018.

The companies need each other to realize this fortune. For example, for iPhone to be manufactured, Apple must purchase the Samsung parts whereas, for Samsung galaxy to be sold, the company needs require orders for the Apple.Inc.Particularly, in 2016, Samsung Company made $195 billion from the sale of the mobile phones parts to the Apple.Inc (Corominas 2013 p.6828). This mutual relationship was established d after Apple had started selling the Smartphone. Admittedly, because of the cooperation between organizations, Apple sales more than 200 million iPhone annually hence limiting the Supply field.

Samsung Company is the main maker of the semiconductor in the world, it is the only organization with the potential of making small chips featured with the extra memory volume. Additionally, the corporation is the sole maker of organic lights which emits the displays of diodes. Apple uses these parts in the manufacture of the iPhone screens. However, in 2011, the two organizations fought the legal battle for the patent infringement. Apple accused Samsung of copycatting their designs.

Distribution and Logistics

Source: Forslund, H., (2012). Performance management in supply chains: Logistics service providers’ perspective. International Journal of Physical Distribution & Logistics Management, 42(3), pp.296-311.

Apple.Inc is the famous company for design and innovation, but their information is kept the secret on how they handle inventory which has led to success. Manjunatha (2016, p.144) describes Apples chain supply to be best in the world. Manjunatha (2016, p.145) further asserts that in the management of the Smartphone, the inventory usually depreciates quickly hence losing value and as result, he affirms they should be handled in same way highly perishable products are managed.

Apple Company purchases material and components from several suppliers and ships them to their main plant located in China for manufacturing. Then they are distributed directly to various consumers across the world through Fedex who accesses them at Apple online store. For the distribution of other distributors and retail stores, the company keeps the products at the California, Grove, and ships the goods from directly from there. Therefore, in the product life, the clients send the goods back to the Apple store which is close.

The way Apple Company sells its goods it cannot be compared with other organizations in the electronics industry. The corporation has the best channel and direct pricing plan for both online and retail storefronts. Apple does not discount via direct channels and this makes it have a unique distribution strategy. The company discounts only refurbished goods and do not change the prices of its commodities on the season. For instance, their prices are kept stable. Although it is illegitimate to set price to the clients, the company is still in position to keep the retail price stable (Forslund 2012, p.298).

Apple online and the retail storefront is special. Their strategy emphasizes more on the support and education than selling. Their plans are simple with minimum crystal and signage of vivid messaging. In fact, their goods are positioned as the unique groups. Additionally, the organization employs resellers for selling their products as special quotas as opposed to the side by side selling to the next rivals either on the online and storefront. For instance, the suitable buy online comprises of the section tagged Tablet PCs and iPad.

Sustainability and Corporate Social Responsibility (CSR)

Companies in the contemporary are striving with the current roles which are to achieve the requirements of the current generation without infringe the ability of the coming generations to realize their own demands. Corporations are being urged to assume the responsibility for methods of the operations effect community and in the natural business environment. Organization is being driven to employ the sustainability norms in the way they run their business. Boiral (2016, p.241) defines sustainability as the organization’s operations which are considered to be standard and which demonstrate the inclusion of the environmental and social concerns in the business activities and in the interactions with the entity’s stakeholders.

In this current regime, organizations are not allowed to experience rapid economic growth in the isolation from the agents which is effected by the actions. As result, firms are required to focus their attentions on the increasing their good corporate image and bottom line. Additionally, the companies are urged to embrace the international trends and remain committed to the financial roles to deliver both public and private gains which shape the corporation’s rules, business model, and frameworks. Further, entities should improve their current efforts and understand the main socially responsible company and consistently update their long and short terms agendas to remain ahead of the faster changing issues.

The complex shift and stark occurred on how corporations could pursue themselves in the relation to the broader variety of both global and local stakeholders. The quality relationship that organizations has with workers and stakeholders such as communities, activists, state and public officials , suppliers , investors ,and customers are the main drivers of the success in the corporation and the company’s ability to respond to the corporate social responsibility ( CSR) and competitive conditions (Gungor 2016,p.151). These robust transformations need global and national organizations to handle their operations in terms of the sustainable development and both individual and organizational management plays a core function in this adjustment.

Companies have created a variety of the approaches for handling intersection of the corresponding business, societal demands, and natural environment imperative. Organizations are considered on the development of the continuum with the respect to the how and deeply they are consolidating social responsibility strategy in the day to day global activities and at the end of continuum are corporations that does not embrace any role to the environment and the responsibility. Additionally, other continuum are the companies which perceive the activities as the having the importance effect and the reliance on the ecological tiers, social, and economic hence creating the responsibility beyond traditional limits of the institution

Sustainability and social responsibility is therefore the prominent element of the society literature and business, corporate social performance , stakeholder management , international corporate citizenship , and analysis the units of the business ethics. Management enlightenment is a significant reference of the current concepts in changing an integrated instated of the fractured knowledge of the economy, but this implies the meaning and role of the responsible leadership required to be frequently updated. However, more studies are required to develop a mutual understanding of what exactly is needed both in the leadership development and leadership itself.

Importance of Quality

Organization needs to enhance quality in order to satisfy its clients and maintain their loyalty for them to continue acquiring their products now and in future. Quality items contribute greatly to the profitability and the long term revenues for the company (Dale 2015, p.102). Considerably, high quality enables the company to charge high prices without losing customer attention. Quality management in the organization is a crucial aspect. It reduces the risks and costs such as replenishing goods with faulty. Therefore, corporations can establish quality reputation through accreditation by the certified quality standards such ISO 9001 established by the international organization for standardization (Dale 2015, p.103).

Company Reputation

Quality builds the organization reputation. For instance, if the quality is good the organizations’ reputation is also well established. The social platforms such as facebook, Whatsapp, twitter, and email enables the clients to share the quality of the organizations product on the quality forums (Boiral and Roy 2016, p.228). Strong quality differentiates the organizations in the market. As a result, the corporation with poor quality is likely to attract less customer or not at all and damages the image of the company.

References

Bouras, A. (2016). Production planning in a three-stock reverse-logistics system with deteriorating items under a periodic review policy. Journal of Industrial and Management Optimization, 12(3), pp.1075-1089.

Boiral, O. and Roy, M.J., (2016). ISO 9000: integration rationales and organizational impacts. International Journal of Operations & Production Management, 27(2), pp.226-247.

Coskun, S., Ozgur, L., Polat, O. and Gungor, A., (2016). A model proposal for green supply chain network design based on consumer segmentation. Journal of Cleaner Production, 110, pp.149-157.

Corominas, A., (2013). Supply chains: what they are and the new problems they raise. International Journal of Production Research, 51(23-24), pp.6828-6835.

Dale, B.( 2005). Perceptions about the ISO 9000 (2000) quality system standard revision and its value: the Dutch experience. International Journal of Quality & Reliability Management, 22(2), pp.101-119.

Forslund, H., (2012). Performance management in supply chains: Logistics service providers’ perspective. International Journal of Physical Distribution & Logistics Management, 42(3), pp.296-311.

Goyal, S. (2017). Performance Indicators for Benchmarking of Internal Supply Chain Management. World Academy of Science, Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 11(7), pp.1940-1944.

Manjunatha, K., (2016). Business Logistics. Vikalpa, 31(4), pp.143-148.

Mafini, C. (2017). Supply chain management problems in the food processing industry: Implications for business performance. Acta Commercii, 17(1), pp.15-pages.

Rodrigues, A. (2014). ISO 9001 certification research: questions, answers and approaches. International Journal of Quality & Reliability Management, 26(1), pp.38-58.