Lecture Notes on Supply Chain Management in Apple Inc.

Introduction

• Alex, a tech enthusiast, attended a virtual Apple launch event.
• Impressed by the iPhone 13 series, he decided to buy an iPhone 13 Pro.
• Missed pre-booking and faced production delays due to supply chain inefficiencies.

Exploration of Supply Chain Management

• Curiosity about supply chain led Alex to discuss with his friend Rachel, who works at Apple Inc.
• Rachel explained the concept of supply chain management using Apple's operations as an example.

Definition of Supply Chain

• Supply chain includes entities involved from raw material sourcing to final delivery to consumers.
• Key players:
  • Raw material suppliers
  • Manufacturers (e.g., assembly plants in China)
  • Third-party logistics vendors (e.g., FedEx, UPS)

Stages of Supply Chain Management

1. Planning

   • Establishing operational strategies.
   • Apple's clear goal: Providing secure personal computing devices.

2. Sourcing

   • Acquisition of equipment/materials from suppliers.
   • Example suppliers:
     • Samsung for screens
     • Foxconn for batteries
     • TSMC for processing chips

3. Making

   • Manufacturing of products at offshore assembly plants.
   • Shipping to warehouses/distribution centers.

4. Delivery

   • Shipping products to consumers from warehouses.
   • Distribution to retail stores for offline sales.

5. Returns

   • Handling of faulty/damaged products.
   • Products sent back to warehouses for refurbishment.

Statistics

• 97% of Apple’s supply chain involves outsourcing agreements.
• Recent global chip shortage affected production; Apple had to halt production of 10 million iPhone 13 devices due to pandemic-related disruptions.

Importance of Supply Chain Management

• A well-managed supply chain can:
  • Lower operational costs
  • Increase profits
  • Improve corporate brand recognition
  • Enhance customer service

Career Insights

• Companies hire supply chain management professionals
• Roles include managing logistics, updating inventory, and evaluating manufacturing cycles.
• Average salary for supply chain managers:
  • $84,000 per annum in the U.S.
  • ₹8.5 Lakhs per annum in India.

Conclusion

• Supply chain management is crucial for product/service-based companies.
• Continuous investment in supply chain strategies is essential for business success.

Quiz Question

• Which option does not fall under the stages of supply chain management?
  • A. Planning operational strategy
  • B. Sourcing
  • C. Making
  • D. Disposal
  • (Encouragement to comment answers for a chance to win gift vouchers)

Call to Action

• Reminder to subscribe and stay tuned for more content on technology and trends.