Apple’s innovative technology, design and world-class marketing have created loyal customers who have made their products some of the most iconic in history. But there is another aspect to Apple’s success – outstanding supply chain management. In fact, Apple’s supply chain has been ranked #1 by Gartner, five years in a row.
Apple is a logistics success, but repeated annual success doesn’t happen by accident.
1) Focusing on Doing One Thing Really Well
Apple have a relatively small variety of products. This is a departure from how things looked in 1997 when the late Steve Jobs took over at Apple. Jobs reduced the number of products offered by the company from 350 to just 10. It was a bold move, but in terms of managing the supply chain, it was very impactful.
Today’s current number of Apple products is just five with 15 variations of each. Those products share many common components which further streamlines the supply chain.
2) Technology at Work
It’s no surprise that a company known for innovative technology would embrace the use of technology in managing its supply chain. Apple does an outstanding job in this area. Through supply chain monitoring technology, Apple can divert products from assembly origin in China to wherever it is needed based on sales. This is a good example of the value that can be derived by utilizing available software to monitor the movement of cargo. Knowing where your inventory at all times allows for continuous adjustments based on need.
3) Trusted Suppliers
There are some 200 suppliers providing some 97 percent of the materials used in Apple’s manufacturing process. When you consider Apple’s size, this isn’t a particularly large number. By keeping the list relatively small, Apple is able to guarantee their suppliers certain production volumes in terms of materials purchased to meet their demands. They have built a strong relationship with their suppliers and maintain a close control of standards.
4) Securing Air Space
Apple has ensured the space needed to move their product, and at the same time they effectively prevent competitors from moving their handheld devices until later in the season.
More than four million iPhone 6s were sold in pre-order within the first 24 hours alone. In the first quarter of 2014, Apple marked the sale of the 500 millionth iPhone. With Apple CEO Tim Cook’s eyes set on China as the largest market for Apple, the stat certainly leaves room for Apple aficionados to speculate how long will it take for the billionth iPhone to sell.
One bet is likely, though. In the end, Apple will still have a well-managed supply chain to boast.
To resume, i could say that Apple is a good example of how logisticks should work on practice, Apple is a successful company, but they couldn’t reach that success without a perfectly planned supply chain.
I recommend you to read that example and also checked the video, that explain really clearly how works a logistics in apple.
Here there is a link https://www.youtube.com/watch?v=YbM_LydRlnM