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s1 {font-kerning: none}span.s2 {text-decoration: underline ; font-kerning: none}Case analysis onApple Inc. Managing a Global Supply ChainABCDateApple Inc. Managing a Global Supply Chain1. Review Apple’s supply chain for its iPhone product.

What differences set it apart from competitors?After reviewing Apple’s supply chain for iPhone products, it is necessary that Apple set production of iPhone internally. Therefore, instead of going to outsource its production, Apple will be able to gain control of its own production to maintain the quality of products and services. By controlling every aspect of the supply chain, the team members of Apple Company integrated their working activities and manufacturers of its components. It will give the ultimate final product that what actually Apple wants. Moreover, Apple collaborated into various unique deals with its suppliers. Apple company established the relationship with the suppliers that if the company face event of shortages then it will come back again to suppliers. In addition, Apple only offered few varieties of iPhone production that brings down the overall cost of its manufacturing.

The Apple has unique intellectual property; simple product lines and procurement. These are the key functions that create differentiation with competitors. Apple procures some of the production components that allow them to remain focus on research and development. 2. What are Apple’s key advantages in how it manages its supply chain operations? Support your analysis with data from the case.It has been known that Apple Company manages global supply chain by efficacy in lead-time.

Such real-time operations heavily placed responsibility on the suppliers. For this reason, Apple gives great compensation and commitment to their suppliers. Apple repeatedly sources from the single producer, because it is recognized as the key strategy of procurement to purchase production capacities from the single supplier. It helps to meet changing trends in the consumer market. Unlike competitors, the Apple does not outsource the overall production of iPhone to the third party.

However, Apple uses the services of subcontractors which are known as Foxconn. Foxconn closely works with the Apple products and services to retain high quality practices. The maintenance of production capacities all over the world is the key factor that manages its supply chain operations. Specifically, in the production of iPhone 5, the company has used 8,700 engineers to monitor overall production and updates each process activity of manufacturing concern.

  Reverse logistics system implemented in the supply chain process of Apple Company. It contributes success to global supply chain management both on a customer services experience and cost levels. 3. What are the challenges that Apple faces in the future, and what are the implications for its supply chain?There are some issues that could be faced in the future such as some products of Apple recognized some products are not providing profitable because of lower relative growth and lower market share shrinks the profitability.

Apple continued innovation in their supply chain system rather than investment in dead products. Moreover, the structure of sales forecasting reveals as disruptive due to high competition and unavailability of some components. Therefore Apple needs to focus on their sales forecasting to meet higher levels of effective supply chain management. Thus, disruptions in sales forecast can lead to layoffs and may harm the supply chain of Apple.  Thus, the overall crux of apple challenges in future will be technology advancement, leadership issues, competition, and mass production. Increase in technological trends gives an opportunity to grab the market and Apple might face such issues in near future.

The transition of leadership from Steve jobs to Tim Cook could leads to uncertainty due loss of confidence in the marketplace. Samsung is the leading competitor of Apple that could take higher market share in the future. At last, Apple criticized that large production shifted into china to gain low cost, but such low cost recognized from sweatshop labor.

Such, critiques put massive pressure on company sustainability factors. There are certain implications for its supply chain such as addressing labor issues, fierce competition, product development, and diversified into more supply chain partners. Apple should standardize the labor treatment and ensure safety measurements at each of production unit to remain sustainable in supply chain management. Due to fierce competition, Apple should utilize third-party logistics to improve customer satisfaction and enhances the efficacy delivering into all over the world. New product development diverts into the more fierce competition, therefore Apple should integrate with the suppliers to untapped the market by featuring cutting-edge technologies. At last, Apple should not rely on single or few suppliers that increase the risk of dependency. Therefore, Apple diversified into different supply chain partners to expand the ground boundaries and secure the better quality of products.

 4. As Jessica Grant, what recommendations would you make to the company’s Vice President, Philip Duchene, and why?Being in a role of Jessica Grant, I believe that Apple should invest in the time product release with the stock price. By the introduction of some supplier companies into Apple portfolio could give higher growth and relatively high market share. It has been seen that the stock price of Apple seems to fluctuate that depends on the news release.

Therefore, it is necessary that larger portion of investment should be taken in the apple portfolios prior to the product releases. It can be very helpful to attain require market values in the consumable electronic industry. 

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