Supply chain practices of Apple.

1. Supply Chain practices of
“Apple"
Azhar Jamal
MS Management Sciences
Riphah International University
Mentor:
Dr. Shahzad Ahmad Khan
Assistant Professor
Presented by:

2. AppleTechnology company
Industry
Computer hardware
Computer software
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 iPhone iPad 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 conglomerate company
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 not just 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
Be a 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

9. Supply Chain Management
http://econlife.com/2014/09/globalization-of-the-iphone-6-supply-chain/

10. Process Cycle ViewDistribution flow 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 / Key highlight
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 think if 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