INTRODUCTION

About Apple Inc

-Total revenue : US$

365.8 billion in 2021
-Industries : Consumer
electronic
-Started on- April 1st Software and online
services Area served : Worldwide
,1976 Numbers of location :
-Founder : Steve Jobs, -Offers a huge range of
consumer electronics, 522 retails stores
Steve Wozniak and Numbers of employees:
Ronald Wayne computers, servers,
software and 164000
-Headquarter :
Cupertino,California, distributes multi-
USA media content
 Apple’s product line
● The iPhone : smartphones running on iOS
operating system
● The Mac : All the Macintosh computers (laptop,
desktops and mini computers)
● The iPad : the tablet computers such as the iPad,
iPad Air, iPad Pro (iPad OS)
● The wearables, home and accessories, includes
the Apple Watch, Homepod, Apple TV, and other
accessories
● Services section includes the subscription-based
services, such as Apple Music, Apple TV+ and
Apple Arcade.
Apple’s organization structure
 Why Apple’s org chart structure is effective?

• Apple uses functional • Their organizational structure is

organization as main focused according to expertise
company structure • Have strong corporate control over
• The company has been organization
organized around areas of • Individual divisions all enjoy
expertise, rather than enough autonomy to enable them
individual products. to perform at their very best,
• The products are worked on by • Every single employee is carrying
individuals from across the out the role best suited to their
different areas of expertise skillset.
 SCM Model of APPLE Inc.
SOURCING
From US,China.Other
Asian Countries and
Europe
RETURN

Warranty MANUFACTURING
return, trade in
Program (Assembly in
Zhengzhou,China)
Recycle/reuse
program

DISTRIBUTION WAREHOUSING

Online store Intermediate

warehouse via
Retail store
UPS/Fedex
Direct sales force
Warehouse
Wholesalers,retailers facilities in Elk
and network carriers Grove,California
 Apple’s SCM strategy

• Maintain long-term and strategic relationships with suppliers.

• Apple has a number of exclusive long-term agreements with its key
suppliers to negotiate favourable pricing terms, secure strategic raw
materials and guarantee high volumes of production
• Focus on non-seasonal products with life-cycles that exceed 12 months.
• Cut down the number of storage locations, leaving only one central
warehouse in California.
• Outsource the manufacturing to China, thus reducing the
manufacturing cycle time from 4 months to 2 months.
• Implement renewable energy sources, making up to 87% of their energy
used worldwide.
 APPLE INC.
Supply Management, Facilities and Distruptions
Presented by:

Isma Fariz, Syazwani, Alisa, Hannan

 FACTORS INFLUENCING APPLE’S COMPANY
NETWORK DESIGN

Macro-
Strategic Logistics and
economic
Factors Facility cost
Factors

Apple’s product To benefit from the Apple’s supply chain

assembling and lowered tariffs and other network should have
manufacturing is incentives offered to as many locations as
located in low-cost high-tech products, necessary to reduce
countries such as Apple's assemble the total logistics costs.
China, Taiwan, and product at production
facility in China.
Vietnam.
 APPLE’S CURRENT FACILITY LOCATION

Apple Park Apple stores Apple Worldwide

located in populated areas In 25 different countries
Apple’s Headquarters is throughout the world, the
located in Cupertino, to increase customer
company currently
California. traffic and brand exposure.
operates approximately
522 stores.
HOW DO APPLE’S COMPANY DESIGN THE SUPPLY
CHAIN NETWORK.
Major Suppliers
-Taiwan and China
Manufacturing
- Zhengzhou,China

Warehousing
-Apple warehouse, California

Distribution
- Apple’s store
HOW CAN APPLE’S COMPANY BEST USE ITS
AVAILABLE TRANSPORTATION RESOURCES.
Distribution Strategy

➔ Direct and indirect channels

- Direct channels include Apple Stores and
official websites while its indirect channels
include all third-party retailers.

➔ Online and offline distribution.

- Apple’s company also sells its products
through its website.
HOW CAN APPLE’S COMPANY BEST USE
ITS AVAILABLE TRANSPORTATION
RESOURCES.
TRANSPORTATION

- Apple uses a variety of transportation methods

to move its products and materials, including
air freight, sea freight, and ground
transportation.

- Apple’s hired outside transportation system -

(Fedex , UPS)
 3.0) SUPPLY CHAIN DISRUPTIONS

Angry Protests At The Global Chip

Iphone Factory Shortage

● Happened at Zhengzhou, ● Rise in demand for

China. technology during
● Foxcom barring staff from pandemic.
leaving the factory. ● Rising needs of chips in
● It causes panic among automobile industry.
workers which make them
fled to their hometown.
● Manufacturing process of
Apple's products got delay.
HOW APPLE INC MANAGE THEIR ISSUE?

Seeking Multiple Utilizing New

Sources from Different Technology
Locations
● Example, artificial
● Add manufacturer intelligence.
from Vietnam and ● Good inventory
India. management
● Invest in Vietnam and because they have
India for the starter of buffer stock for
their new ‘Iphone any unexpected
Cities’ event.
 RECOMMENDATIONS
Invest in
Develop more
warehouse
suppliers
automation

Choose the Maintain new

right partner technology
 CONCLUSION
Apple extended credit line to some of its deserving
suppliers, a move which was unheard of in the SCM
industry.

Apple annual inventory touched a high point during 2017

to a value of 4.8 billion.

Apple has the industry’s best inventory turnover

compared to Dell, HP and Samsung.