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Apple supply chain
The document discusses Apple's supply chain practices, including its global sourcing and manufacturing operations centered in China, as well as its distribution channels of retail stores, online stores, and third party retailers. It also examines Apple's supply chain management process involving planning, development, production, and return operations. Key aspects of Apple's supply chain that have contributed to its success include strong partnerships with suppliers and an integrated approach to planning and fulfillment.
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Apple supply chain
- 1. Supply Chain practicesof “Apple" Azhar Jamal MS Management Sciences Riphah International University Mentor: Dr. Shahzad Ahmad Khan Assistant Professor Presented by:
- 2. AppleTechnology company Industry Computer hardware Computersoftware Consumer electronics Digital distribution Fabless Silicon Design Corporate venture capital Founded April 1, 1976 Founders Steve Jobs Steve Wozniak Ronald Wayne Headquarters Apple Campus, Cupertino, California, United States Number of locations 495 Apple retail stores in 18 countries (as of May 2017) https://www.apple.com Revenue: $ 215.6 billion (2016) Market capitalization: $ 817.54B Share Price: $ 156.10 Subsidiaries: Beats Electronics, Apple Store, FileMaker Inc. etc.
- 3. MacBook iPod iPhoneiPad Apple Watch Apple TV MacOS iOS WatchOStvOSiLife iWork Software Apple Pay Online Apple Store iTunes App Store iBooks StoreiCloudApple Music Services Products It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them – Steve Jobs
- 4. Alphabet Inc Multinational conglomeratecompany Revenue: $ 90.27 billion (2016) Subsidiaries: Google, CapitalG, Nest Labs, Calico, etc. Market capitalization: $ 652.67B Share Price: $ 955.14 Microsoft Revenue: $ 85.32 billion (2016) Subsidiaries: Yammer, Mojang, StorSimple, Xamarin, etc. Market capitalization: $ 521.45B Share Price: $ 68.38 Samsung Revenue: $ 46.99 billion (2016) Subsidiaries: (Its is a subsidiary of Samsung Group). Market capitalization: $ 282.39B Share Price: $ 1,026 Competitors Have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary. – Steve Jobs
- 5. iPhone 20162015201420132012 2011201020092008 Design is notjust what it looks like and feels like. Design is how it works – Steve Jobs
- 6. Supply Chain Planning R&D •Develop new technologies • Acquire licensing on intellectual property • Acquire third party business Concept Testing • Conduct marketing research • Conduct product testing • Assemble cost data • Identify potential quality defects Pre-Launch • Manage production ramp issues • Provide software for new products • Manage material purchase commitments • Provide proper inventory levels • Determine launch quantity • Raise orders, make pre- payments to suppliers Launch • Resolve backlogs • Make demand forecast up to 150 days. Quarterly Review • Review inventory Level • Adjust demand forecast • Check product life cycle status • Update new product development status • Monitor current sales levels • Monitor component price trends Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations – Steve Jobs
- 7. Supply Chain Model Bea yardstick of quality. Some people aren't used to an environment where excellence is expected – Steve Jobs United States China Other Asian Countries Europe Sourcing Assembly in China Manufacturing Intermediate warehouses via UPS / Fedex Warehouse facility in California Warehousing Wholesalers, Retailers, Network Carriers Online Store Retail Stores Direct Sales Force Distribution • Warranty Return • Trade in Program • Recycle / Reuse Program Return
- 8. Supply Chain Management Samsung:CPU + Video chips Infineon: Baseband Communications Singapore Primax Electronics: Digital Camera Modules Foxconn International: Internal circuitry Entery Industrial: Connectors Cambridge Silicon: Bluetooth Umicron Technology: circuit board Catcher Technology: Casings Taiwan Broadcomm: Touch Screen Controls Marvell: 802.11 Specific Parts United States Apple Shenzhen: Assembling + Inventory China The people who are crazy enough to think they can change the world are the ones who do – Steve Jobs
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- 10. Process Cycle ViewDistributionflow Push Model Customer Order Cycle Replenishment Cycle Manufacturing Cycle Apple Final Customer Final Customer Final Customer Final Customer Final Customer Retailer Value Added Reseller RetailerOnline Store Retail Store Direct Sales Force Third Party Wholesalers Procurement Cycle Supplier Manufacturer Distributer Retailer Customer The only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. – Steve Jobs
- 11. Achievement / Keyhighlight Don’t let the noise of others’ opinions drown out your own inner voice– Steve Jobs http://www.gartner.com/technology/home.jsp The best supply chain in the world - from 2009 to 2012
- 12. Thank You I thinkif you do something and it turns out pretty good, then you should go do something else wonderful, not dwell on it for too long. Just figure out what’s next– Steve Jobs