Lecture Notes: Supply Chain Management in Apple Inc.

Introduction

• Alex, a tech enthusiast, attended a virtual Apple launch for the iPhone 13 series.
• Decided to buy an iPhone 13 Pro but missed the pre-booking deadline.
• Faced delays due to supply chain inefficiencies, prompting an interest in supply chain management.

Understanding Supply Chain

• Alex spoke with Rachel, a friend at Apple, about supply chain management.
• Overview of supply chain for an iPhone:
  • Manufacturing Location: Assembled primarily in Shenzen, China.
  • Raw Material Suppliers: Goods sourced globally and delivered to the assembly site.
  • Logistics: Products shipped to storage warehouses and then to customers through third-party vendors (FedEx, UPS).
• The term "supply chain" encompasses all entities involved from production to delivery.

Stages of Supply Chain Management at Apple

1. Planning:

   • Apple has a clear operational strategy focused on delivering the best personal computing devices.
   • Pre-launch scrutiny for apps to ensure device security.

2. Sourcing:

   • Acquires equipment and materials from various suppliers.
   • Example Suppliers:
     • Samsung: 120 Hz screens.
     • Foxconn: Batteries.
     • TSMC: Processing chips.

3. Making:

   • Products are assembled at the offshore assembly plant in China.
   • Assembled products are shipped to global warehouses.

4. Delivery:

   • Online orders shipped from storage warehouses to consumers.
   • Retail items sent to offline stores from distribution centers.

5. Returns:

   • Faulty products returned to warehouses for refurbishment.

Impact of Recent Events on Apple's Supply Chain

• 97% of Apple's supply chain relies on outsourcing.
• Recent worldwide chip shortage caused by:
  • COVID-19 pandemic shutdowns.
  • Increased demand for consumer electronics.
• Apple had to pause production of 10 million iPhone 13 devices due to these issues.

Conclusion

• Understanding the intricacies of supply chain management is essential for operational success.
• Well-managed supply chains can lead to:
  • Lower operational costs.
  • Increased profits and improved brand recognition.
  • Enhanced customer service.
• Supply chain management professionals are highly compensated:
  • Average salary in the U.S.: $84,000/year.
  • Average salary in India: ₹8.5 lakhs/year.

Quiz Question

• From the given options, which does NOT fall under the stages of supply chain management?
  • A. Planning operational strategy
  • B. Sourcing
  • C. Making
  • D. Disposal
  • Answer in comments for a chance to win Amazon gift vouchers!

Closing

• Encouragement to like, subscribe, and stay tuned for more technology updates.