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Analyze the Evolution of Supply Chain Management in Apple Corporation

In: Business and Management

Submitted By revolution
Words 2087
Pages 9
Apple’s Supply Chain Management – An Overview
Many supply chain professionals consider Apple’s supply chain to be the best in the world. But is that simply because Apple is among the most recognised brands in the world? For an objective analysis, a deeper look into the management and supply chain must be investigated thoroughly. However, in order to study Apple’s supply chain management, parameters on what a supply chain is must be set. Traditionally “Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.” Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. SCM works on three different levels, the strategic level, the tactical level and the operational level. All three are imperative for a company to function properly
Apple is the best in the world at innovative product development. Because the company develops hardware, software, and associated digital services—rather than just focusing on one dimension—it can provide an unmatched user experience. This allows Apple to capture high margins from its products and services. But by many definitions alone, product development is not supply chain management; procurement, manufacturing, and logistics are. That said, Apple has a fascinating supply chain that is very different from traditional supply chains. This supply chain comes with pre-built advantages and disadvantages.
On the advantage side, demand management is easier. Apple doesn’t have to get the demand forecast for a new product right. As long as it underestimates demand for a hot new product, Apple will have loyal customers clamoring for the new devices and willing to wait. In fact, the projected backlog…...

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