Apple Inc. – Managing a Global Supply Chain

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Executive Summary

An analyst for a money management company based in Toronto, BXE Capital (BXE), was studying Apple Inc. as one of the company’s main investments. Apple had a market capitalization of nearly USD 500 billion and sales of USD 171 billion in 2013.

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According to the research company, Gartner Group, it had the best supply chain in the world, ranking ahead of firms such as Amazon, Zara and Walmart. As a part of the analysis, a full review of the supply chain of Apple Inc.’s is required to look for insight into the future performance of the company for deciding whether the analyst company should continue to hold the shares of Apple Inc. Introduction Apple Inc. was established by Steve Jobs, Steve Wozniak and Ronald Wayne in 1976. In the summer of 1976, Ronald Wayne had left the company, but Steve Jobs and Steve Wozniak launched the first of many trendsetting products to be developed and released, Apple 1 Computer. While under John Sculley’s leadership, Steve Jobs, Steve Wozniak left Apple in 1985.

However, Steve Jobs returned in 1997 and became CEO, taking control of Apple Inc. and bringing the company back from near bankruptcy to profitability by 1998. Under the legendary leadership of the late Steve Jobs, the Apple Inc. brand was successfully rebuilt and become one of the most innovative companies in the world today and has a large loyal customer base. Just after Steve Jobs returned, Tim Cook (a world-renowned supply chain expert) joined Apple Inc. in 1998, who helped transform Apple Inc.’s messy operations into a global supply chain success and credited with streamlining Apple’s supply chain, helping create the most powerful supply chain in the world. Apple Inc. is one of the world leaders in innovation today, product design and development, marketing and branding, software ecosystems, products and services.

It sells products through its retail stores, online stores, direct sales force, third-party cellular network carriers, wholesalers, and retailers. It also sells digital content and apps through the iTunes Store. Apple Inc. has evolved into the Most Valuable Brand in the world today. The Differences set Apple Inc. Apart From its Competitors There are several main aspects set Apple Inc. apart from its competitors (see as below): AppleCompetitors Adopting ‘Air-Freight’ as a more efficient methodAdopting cheaper transportation methods such as ‘Sea-Freight’ Adopting ‘Intermediate Warehouse’ at Fedex and UPS for reducing customers’ waiting time. N/A Keeping the close relationship with global suppliers. Strictly treating suppliers, and attempting to reduce their price Maintaining ‘Just-in-Time’ supply chain. Focusing on ‘cost’ and selecting the lowest price suppliers.

Apple Inc.’s Key Advantages in Manages its Supply Chain Operations

Real-time coordination of supply chain Comparing to the life-cycle of traditional product which spans over four to five years,

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