challenges in global production with example of apple

1. - Agamjyot singh chawla (19GSOB1010242)
- Manas raj (19gsob1010183)
- Ashutosh Tripathi (19GSOBQ1010198)

2. CHALLENGES COMING IN THE WAY OF GLOBAL
PRODUCTION –
 COVID-19 has struck at the core of global value chain hub
regions, including china, Europe and the U.S.
 Industrial production in china has fallen by 13.5% in January and
February
combined, compared with the previous year.
 The pandemic has severe implications for international
production networks and may leave its legacy for years to come.
 The covid-19 pandemic has created a nationwide surge in
demand for processors, and that has them examining areas of
their suppy chains that may need reinforcement.
 Covid-19 has also affected international contracts.

3. Many of apple’s suppliers in china were forced to shut down
production for several weeks in early February. Apple delays mass
production of iphone series which means there may be a shortage
of new iphones in an all-important festival season due to corona
virus.

4.  Apple is expected to produce 200 million Iphones
this year, about 10 percent lower than the estimate
before the covid-19 pandemic.
 Apple has also reportedly postponed the launch of
its 5G compatible ipad pro.
 According to a report in china’s economic daily
news , apple has postponed the launch of tablet
also which was expected to launch in 2020 mid ,
because of corona virus pandemic

5.  Create transparency on multitier supply chains establishing a
list of critical components, determining the origin of supply
and indentifying alternative sources.
 Estimate available inventory along the value chain – including
spare parts and after sales stock for use as a bridge to keep
production running and enable delivery to customers.
 Assess realistic final-customer demand and respond to
shortage-buying behaviour of customers.
 Optimize production and distribution capacity to ensure
employee safety , such as by supplying personal protective
equipment.

6.  identify and secure logistics capacity, estimating
capacity and accelerating ,where possible, and
being flexible on transportation mode , when
required.
 Manage cash and net working capital by running
stress tests to understand where supply-chain
issues will start to cause a financial impact.