apple inc managing a global supply chain case study

• Programs Overview
• MSc in Management
• Full-Time MBA
• Accelerated MBA
• Executive MBA
• MBA Direct for HBAs
• Master of Management in Analytics
• The Ivey Academy
• Pre-Ivey Experiences
• Ivey Asia - Executive Education
• Faculty & Research Overview
• Faculty Directory
• Area Groups
• Centres & Institutes
• Ivey Impact
• Purpose, Mission and Values
• Strategic Planning
• Equity, Diversity, and Inclusion
• Careers at Ivey
• Ivey Idea Forum
• Media Centre
• Contact Communications
• Alumni Overview
• Get Involved
• Benefits & Services

Apple Inc.: Global Supply Chain Management

Nov 12, 2020

• Apple Podcasts

Fraser Johnson , professor of operations management at the Ivey Business School, joins host Matt Quin to take another look at his  award-winning  case,  Apple Inc.: Managing a Global Supply Chain  (2014), as well as the recently published update,  Apple Inc.: Global Supply Chain Management  (2020).  In this episode, Johnson and Quin discuss Apple's business model, how he has brought the company into the classroom over the years, and why junior faculty ought to consider writing cases. Professor Johnson is the Leenders Supply Chain Management Association Chair at the Ivey Business School, Western University, where he teaches courses in supply chain management and operations. Johnson is also the Director of the  Ivey Purchasing Managers Index , one of the most widely watched and utilized indicators of future economic activity in Canada.

Hi, I'm at Quinn. Thanks for joining us for decision point from Ivy Publishing at the Ivy Business School. Today we returned to another award winning and best selling case. Apple INC managing a global supply chain, originally published in two thousand and fourteen. Authoring Professor Frasier Johnson from the Ivy Business School, presents a snapshot of Apple up against competitors such as blackberry and Samsu. Unlike other companies with leading supply chains, such as Walmart, apple's approach to supply chain strategy and supplier management padded, investing far less in assets to support distribution. Instead, the company is now famous for its focus on innovation, new product development and brand management. In this episode we ask Professor Johnson about how apple was able to use its business model and supply chain strategy to help it continue capturing significant value from hardware sales. We also take a look at the updated two thousand and twenty case in the increased complexity for apple as it continues to add services in products to compete in the mature smartphone market. I hope you enjoyed today's episode. So, Frasier, thanks very much for joining us today. Apple was a really different company in two thousand and fourteen. What prompted you to write the case then, and how have you audit what's changed as you've taught it throughout the years? Well, apples a fascinating company. A lot of the cases that are done in the supply chain area tend to be with traditional manufacturing companies like Toyota or large retailers like Walmart, and one of the things that really interested me about apple was or business model with the IPHONE, with these annual product introductions, with big spikes in demand, and exactly how were they able to get their supply chain organized to be able to meet these big peaks in demand that they were facing. So the great thing about cases is it puts the student in the seat of a protagonist. This particular case Examines Apple from the perspective of Jessica Grant. She's an analyst with a Toronto based Money Management Firm. You, as an author, did a great job of giving students a primer of how apple was able to reach the margins with the iphones through supplier relationships and really tight coordination of the supply chain. Can you remind listeners what's at stake in the case for apple when it was set in two thousand and fourteen. Well, apple was one of the early innovators in the smartphone business and if you take a look at what's happened to the company over the last decade or so, the iphone is a way that apple connects with their consumers. Those they do things like sell services to individuals. Really, you know, the analogy that I use in the teaching note is that the iphone represents the the the razor that they used to be able to sell the blades to the consumers. So as apple looks to expand as market in the smartphone business, really what it does is give them a platform to be able to connect with their consumers. And from the students perspective, you're putting them in the role of the analyst in the case allows them to take a look at the entire business operation as opposed to taking the role of a functional executive with a specific functional related problem. So let's talk teaching notes for a second, because you've written a lot of case as many of them are best sellers. Let's dive into the teaching note part of this. In the teaching note you mentioned flexibility as a key part of the apple supplier management strategy. With recently apple moving away from mentell process. There's in away from Samsung as a screen supplier. It seems that the company is really continuing to embrace this approach of flexibility. What do you see in the company? Back in two thousand and seven when apple launched the iphone, they basically outsourced everything. HMM. So to bring a iphone to market they had to work closely with their suppliers. And the other interesting part of this is a short product life cycle of the IPHONE. They bring a new product ote every year and that was one of the it's one of the other important parts of the case. How do you work with suppliers where you're constantly launching and relaunching a new product every year, in selling product in the in the millions? So if you take a look at a company like Walmart, for example, they practice every day low pricing, so they try to minimize the bull whip effect and provide stable demand so they can work with their suppliers to reduce their total costs. Apples a complete opposite. They embrace variability. They have, as I said earlier, these annual releases with huge product introductions, with high volumes and then volumes taper off slowly until they bring out a new product and repeat the process all over again. And so you've built this in these comparators, in in the narratives. So one of the things that we know is important about the uptake of a case, in the sales of a case, is also the teaching note, and you write great teaching notes. You've mentioned apple versus Walmart. What are some other things that you try to include in a teaching note to help a faculty member use it in the classroom? What are your keys to success? Well, you know, what you want is, as somebody writing a case, to have a teaching note that resonates with other instructors. So when I say resonates, it's got to be something that they can relate to. It doesn't want to be so complicated that when they read the case and then take a look at the teaching note, become intimidated with the material that they see. They have to be able to understand it. They'd be had to be able to translate the material that you provided the teaching note into a classroom setting, so being able to talk about the issues at instructors face, including a teaching strategy appropriate questions to ask as part of delivery of the material are all very important. The other thing that I think is important to recognize is it before the case is completed, you've also got to write the teaching note. So don't publish the case and then come back to the teaching note a month later or two months later. Rate both documents simultaneously, because you have to use your teaching note as a quality control check to make sure that there's enough information in the case for the students and the instructors to be able to complete the analysis properly. And I know something you've done and our other colleagues have done is way to finalize that teaching note, if you will, until you've taught it a couple times and see how certain questions go or there might be some new information that comes out that you can include. So I know you've done that a few times as well. Right. Yeah, for many of the cases that I've written I will go back to the great staff at I've publishing and make revisions to the teaching note and perhaps to the case I'm talking about, minor at it to make in case issues have come up in the class discussion and I can help clarify the case by making qualifying statements. Sometimes when you're right a case, even with the editing process that you go through, sometimes students don't always interpret the information properly. So gives me a chance to be able to go back in and, you know, just a couple of sentences put not tend to clarify what certain peoples of data mean. For example, one of the tips that you gave is to try to not make things overly complicated. At the time of the case there's a lot happening at at apple with the five c being released. Profit margins were down slightly from, you know, two thousand and nine to two thousand and eleven. What do you think of and consider as you're writing a case to maintain that focus without, you know, there's a lot that you can put in a case. How do you remain so focused as an author? Well, I think that you're right a case in a particular point of time and as you as you say, you know, a lot has happened at apple in the last decade, or I guess thirteen years, since they brought out the first iphone, and you know the way that I view a lot of cases. You like my one an apple my other cases on Walmart and Amazon, is that they're almost live cases in the sense that, you know, I keep crack of what's going on in these organizations throughout the year before I teach the case so that we can use the information in the case is kind of a launching board, but we can also I can also incorporate through the introduction of power point slides, for example, and other information in terms of more recent developments. In the case of Apple, you see them, for example, insourcing more product buying the chip division from Intel and moving more to insourcing mode as opposed to an outsourcing mode, and that's the kind of stuff that you can incorporate into the class discussion. You've mentioned that you've released an updated case, which is great. We encourage faculty to do that and authors to do that. We welcome that and it's a smart thing to do because the cases evolve, the companies evolved in the situations, in the environment that the business is working evolved as well. Could you talk a little bit about the new case and the new complexities for Apple? Is As we sit here, in two thousand and twenty I wrote the first apple case, as you stated earlier, in two thousand and fourteen and if you take a look at what was happening to apple at that point, the sales for iphones were on the upsway and you know, if apple had a problem at that point, it was simply keeping up with demand. Now, if you take a look at what's happening in two thousand and twenty, the situation that the company faces and the challenges for its supply chain or are a lot different. As we talked about earlier, it's more moved to more of an insourcing model. On the other side of it, sales of the IPHONE are now starting to flatten out and the smartphone market is starting to mature. So we've see in back in two thousand and fourteen, apple competing in an environment where the markets growing margins are pretty healthy and it's having trouble keeping up with the man to in two thousand and twenty, where you're facing consecutive years of sales declines of the IPHONE and a maturing market with a lot of price pressure on margins. The other thing that you see with apple in two thousand and twenty compared to two thousand and fourteen is an increased emphasis on services. So one of the things that we can talk about in the new case is how does apple manage its services supply chain? So it really gives you a double edge. On one side we can talk about changes to the iphone and what apple does to manage its iphone successfully, but also how do they use the iphone in terms of its relationships and connectivity with its customers as part of its services supply chain? I've mentioned before how popular this case is. It's been climbing up the best seller list for years. Why do you think that is it? Is it the brand? Is it because the student can hold this thing in their hands and have a relation with with the company? What do you think is made us so popular? You know, I like to say cases like this teach themselves, and you know it's an overused line maybe in some areas, but students are familiar with the company, instructors are familiar with the company. The brand is strong. Even students that don't necessarily get excited about coming to class and talking in a case discussion do like the technology companies and I think there's something in the case for people that most people, particularly students, can relate to in terms of the technology and how they use their iphones and even the debate among the students in the class, among the iphone users versus the non iphone users. So every time I teach the case I ask you know, who's using apple products, and iphones included, and who's not using them, and why is that? You know, why do you like apple? Why do you use your products? On the other end of the spectrum, who are the Anti Apple people and why have they made a conscious decision not to participate in what I call in my new case apple ecosystem? And that kind of allows us to talk about the company strategy, which then evolves into a further more detailed discussion about how they're able to support Tho strategy with their supply chain capabilities. Yeah, it's a very accessible for for students of many Undergrad students, Grad students, high school students, can they can all take a different approach with it, but apple is a company is pretty accessible. Have there been any challenges or surprises when you've taught this where you go, oh, that's a different perspective or I have to remember to the include that in my next version of the case. Anything that comes to mind. The major event for me was in two thousand and nineteen as I was teaching the case and my supply chain management elective. And you know, as I'm standing up in front of the class talking about what's happening with a company in two thousand and nineteen, about exactly how much it changed at at Apple, and you know that point. You know after I, as I do after every class, I make notes to myself in terms of things that I want to remember for the following year, I made the decision that I commit the time to updating the case and writing and ended up doing that writing the case this year. So to me, you know, when you deal with cases like apple, you know a lot of the changes and things that happen, both in the classroom as a result of what happens at the company and as part of your preparation in terms of teaching the case. Is kind of evolutionary. Is of most revolutionary. Yeah, but eventually, you know, with companies like this, you do reach a point where you've got to think about revising the product, and that's one thing I want to give as a really good tip, and I don't want to overlook this, I'm just looking at some notes I've got here, is that the importance of immediately after the class, taking down notes as an instructor H who's either taught this case a number of times or just new to it. All the great case teachers that I've seen makeup point immediately, even at the breaks, of writing down some notes about ways it could be done differently or different things to approach or something that didn't go so well. So I want to make sure that if we hit that point for those that are listening, because that's such a great tip that I don't want to overlook. So anything else that you make a point of doing right before class or during a break or right after the class as a process for case teaching? Yeah, yeah, I think that this is maybe a minor point, but I think a relevant one. I think regardless of how many times you've taught a case and regardless of whether or not you're the one that wrote the case, and sometimes I think people that write cases can be too overconfident in terms of their level of understanding with the material to invest the time before class to get ready, regret, regardless of how many times you've taught the case. So don't just pick the file up and walk into class. US remind yourself about the essential details of the case and the case facts and think about how you're going to manage the conversation with the student. And, as I said earlier the debrief after class, every time I teach a case, I sit in my office after class and make note to my teach on the front of my teaching plan in terms of things that I would adjuster do differently or things that I want to remind myself worked well and to do. And that regular pays off, because I've seen you teach. You've welcome to a lot of our team members from I be publishing to watch a teach. So I've seen it at work. As we wrap up today on the discussion, I want to come back to the writing of cases. Do you have anything that stands out to you that you wish somebody had told you when you were just starting to write cases? Any any tips for new case writers as they ventured down this road? I think that you, as a new faculty member, writing cases is a is a great way to first of all learn about management practice and if you're writing feel cases working with companies in terms of material or case development, it gives you a chance to be able to talk to managers about some of the issues that they're facing and it keeps you current and, you know, being able to and you can do that through your research, certainly, but writing cases is another way to be able to stay in touch with what's going on in terms of management practice. The second point is a writing cases helps you establish credibility with your students. Students pay attention to the material that's being used in terms of the case studies, and if your name's on the author list of the case study that they're using, it tells the students that you know you're doing work in this area. These chances are they're probably not reading your research and helps establish some credibility in terms of your familiarity with the subject matter and the material that you're using in class. Well, that's fantastic. Thank you so much, Frasier, for taking the time to speak with us and, moreover, working with our team on publishing cases and bringing cases to the class. I know when we get a submission from you, our team always enjoys the process, so thank you for that as well. It's my pleasure. Thanks for the great job that everybody to I be publishing, does and supporting the word that the faculty does in terms of writing and publishing cases. If you enjoyed today's episode, subscribe to Decision Point on spotify or wherever you listen. Be sure to check out the show notes for links to cases, resources and more. have any feedback, send us an email at cases at IV DOC A.

• Ivey Publishing

Brought to you by:

Apple Inc.: Managing a Global Supply Chain

By: P. Fraser Johnson, Ken Mark

An analyst for a money management firm is studying Apple Inc. as one of the firm's key investments. In 2013, Apple had a market capitalization of nearly US$500 billion and sales of US$171 billion.…

• Length: 21 page(s)
• Publication Date: May 16, 2014
• Discipline: Strategy
• Product #: W14161-PDF-ENG

What's included:

• Teaching Note
• Educator Copy

$4.95 per student

degree granting course

$8.95 per student

non-degree granting course

Get access to this material, plus much more with a free Educator Account:

• Access to world-famous HBS cases
• Up to 60% off materials for your students
• Resources for teaching online
• Tips and reviews from other Educators

Already registered? Sign in

• Student Registration
• Non-Academic Registration
• Included Materials

An analyst for a money management firm is studying Apple Inc. as one of the firm's key investments. In 2013, Apple had a market capitalization of nearly US$500 billion and sales of US$171 billion. According to the research firm, Gartner Group, it had the world's best supply chain, ranking ahead of companies such as Walmart, Amazon and Inditex (Zara). As part of the analysis, a full review of Apple's supply chain is required to look for insight into the future performance of the company in order to decide whether or not the analyst's firm should continue to hold Apple shares.

Learning Objectives

This case can be used in a single 80-minute class in an operations, supply chain management or strategy course, in an undergraduate, MBA or EMBA program, to illustrate the supply chain capabilities necessary to successfully compete in the fast-paced high tech industry. Combining the Apple case with the "Half A Century of Supply Chain Management at Wal-Mart" case (Ivey <a href= 9B12D010">https://www.iveycases.com/ProductView.aspx?id=54407>9B12D010 </a>) in back-to-back classes provides a particularly powerful illustration of the differences between the two leading companies and the alignment of supply chain competencies and organizational strategy. The comparison illustrates that firms must consider their unique competitive environment when investing in supply chain capabilities.

May 16, 2014 (Revised: Mar 13, 2017)

Discipline:

Ivey Publishing

W14161-PDF-ENG

We use cookies to understand how you use our site and to improve your experience, including personalizing content. Learn More . By continuing to use our site, you accept our use of cookies and revised Privacy Policy .

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

APPLE INC.: MANAGING A GLOBAL SUPPLY CHAIN 1

Related Papers

Hemerson M Ramos

In December 1980, Apple Inc. went public presenting an initial price share of $22. Within minutes, the company’s market price was worth $1.78bn, marking a financial trend that culminated in Apple’s actual worth value of $1 trillion (Neate, 2015). The company’s core values, base for the formulation of Apple’s strategies, are undoubtedly responsible for its current success in the high-tech market, being perceived by stakeholders worldwide as a disruptive company in terms of innovation, technology and design (Gustin, 2015). Gendron (2012) notes that in order to evaluate the success of a company, it becomes imperative the utilisation of business analysis tools. Therefore, this report will discuss how Apple’s strategies have been used to build and sustain competitive advantage, allowing the company to become a benchmark to all players in the technological market. Moreover, while not offering recommendations, this paper intends not only to highlight Apple’s strategies for success, but also to present some of the issues faced by the company in the adoption of certain strategic decisions. Finally, the methodology employed in this investigation consists in the utilisation of theoretical tools such as SWOT, Porter’s Five Forces, Value Chain and Three Horizons. An evaluation of the usefulness of these strategic tools is presented, proposing a discussion in relation to the effectiveness of frameworks created in an ‘analogic’ world in the current ever-changing reality we live in.

The Oxford Handbook of the Corporation

Martijn Boersma

Many of the great international corporations of the past have now largely been disembodied into global value chains. This chapter considers the implications of the continued advance of global value chains as the mode of production for an increasing number of goods and services, and how this has impacted considerably on the economies and societies both of the developed world and the emerging economies. In turn, this has transformed corporations themselves into largely finance, design, and marketing agencies which are often distant from the production and operations which they ultimately control. While the globalization of production has brought employment and economic growth to many developing countries, it is also associated with exploitative employment relations, environmental irresponsibility, and recurrent ethical dilemmas. While corporations may disaggregate production in distant networks of contractors, they cannot as readily disaggregate the moral responsibility for the social and environmental impact of their mode of production.

Scot King , Bruce Holman , Marilyn Gates

The city cutting spanish-american born in the new low Spanish medieval pueblas

ESTOA. Revista de la Facultad de Arquitectura y Urbanismo de la Universidad de Cuenca

The objective of this work is to identify the urban foundations from which the Hispano-American city was built in the repopulation processes that took place during the Christian Reconquest of the Iberian Peninsula. The investigation begins in the reign of Alfonso X El sio and it goes until the time of the discovery in a route in which the union between history and urbanism is indissoluble. The crucial moment of this historical journey is precisely its origin, the reign of Alfonso X El Sabio, because in it the urban pattern that will lay the foundations of the future Spanish city in America is discovered. The grid reappears as an urban trace.

SAE Technical Paper Series

Helen Romelashvili

An ability to make adjustments in processes to correct drifts or sudden changes in product quality is essential in maintaining a high quality product. While this feed-back capability exists on various single pieces of machinery in textile manufacturing (autoleveling etc.), it does not exist for the textile manufacturing process as a whole. Indeed the disjoint nature of the manufacturing process and the practice of blending (not in laydowns, but throughout the manufacturing process) restrict our ability to relate product quality to the properties of raw materials and the processing conditions. This work is designed to provide this backward projection of quality parameters, primarily from fabric back to raw material (the yarn manufacturing process). As only the fvst quarter of work has been completed, this report concentrates on the planning and work in progress rather than presenting results, which at this time are limited. Discussion:

Tran Thanh Men 001974

Received: 28/02/2021 This study is aimed to evaluate the antioxidant and antibacterial activities of two plants collected in Kien Giang province, Vietnam. The antioxidant property was determined for their antioxidant activity by DPPH, ABTS, RP và TAA methods in vitro. The results showed that the ethanolic leaves extract of Mimosa pigra displayed in vitro antioxidant activities with the IC50 (effective concentration) values are 67.12 μg/mL, 39.22μg/mL, 32.16 μg/mL and 71.86 μg/mL respectively. Similarly, the ethanolic leaves extract of Senna alata with IC50 values are 357.19 μg/mL; 40.39 μg/mL; 331.03 μg/mL and 119.59 μg/mL respectively. Total phenolic and total flavonoid of leaf extract of Senna alata contents were 203.57 mg GAE/g and 46.31 mg QE/g, respectively. Similarly, total phenolic and total flavonoid of leaf extract of M. pigra contents were 306.08 mg GAE/g and 38.71 mg QE/g respectively. The antibacterial activity is investigated in 4 bacterial strains which can cause aquat...

Kubanychbek Ramankulov

Introduction The progress achieved by the states of the Eurasian Economic Union in the 90s of the last century was the most noticeable in solving the problem of the abolition of child labor expressed in the adoption of laws on children, the formation of legal institutions of child protection in difficult situations and mechanisms called upon to ensure the application of international legal standards on child labor. Methods: The systematic analysis and the comparative legal methods of studying the child labor problems in the states of the Eurasian Economic Union in terms of analyzing its current state and ensuring the effective implementation of the ban on child labor in the Eurasian Economic Union are determinant. Analysis. The article examines the legal problems of implementation of the child labor proscription in the states of the Eurasian Economic Union. Based on a system analysis, the necessity to solve the problem of the conceptual and categorical framework is justified as on...

Journal of Innovation and Applied Technology

Rositawati Indrati

Classical and Quantum Gravity

Paulo Moniz

RELATED PAPERS

Journal of Policy and Practice in Intellectual Disabilities

M. Al-yagon

Ahmad Abduny Rahal

Sedekah Jumat Subuh

sedekahjumat nasibox

Research and Reviews: Journal of Pharmacology and Toxicological Studies

vishnu vardhan

Archivos de Bronconeumología

Francisco Pozo

The European Physical Journal C

Ignatios Antoniadis

Arquivos de Neuro-Psiquiatria

Fabio Andres Santana Rocha

Review of Scientific Instruments

Vladimir Petrov

Suluh: Jurnal Bimbingan dan Konseling

ANDI BUANA PUTRA

European Urology Supplements

Rosa Antonia Tomas Ferreira

International Journal of Engineering

Seid H. Pourtakdoust

Eurasip Journal on Wireless Communications and Networking

Gérard Dreyfus

Annals of the Rheumatic Diseases

Elaina Collie-Duguid

Organic Letters

Kevin Burgess

Ad Hoc Networks

diệp nguyễn

Experimental Dermatology

Radomir Slominski

Justin W Vollet

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

Product details

Teaching and learning

• This case has been featured on our website, click to view the article .

Leadership & Managing People

Apple Inc.: Managing a Global Supply Chain

Apple Inc.: Managing a Global Supply Chain ^ W14161

Want to buy more than 1 copy? Contact: [email protected]

Product Description

Publication Date: May 16, 2014

An analyst for a money management firm is studying Apple Inc. as one of the firm's key investments. In 2013, Apple had a market capitalization of nearly US$500 billion and sales of US$171 billion. According to the research firm, Gartner Group, it had the world's best supply chain, ranking ahead of companies such as Walmart, Amazon and Inditex (Zara). As part of the analysis, a full review of Apple's supply chain is required to look for insight into the future performance of the company in order to decide whether or not the analyst's firm should continue to hold Apple shares.

This Product Also Appears In

Buy together, related products.

Apple Inc.: Global Supply Chain Management

Trip Trap: Managing Certification in the Global Supply Chain

The Walt Disney Company

Copyright permissions.

If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity.

Order for your team and save!

• Subscribe to RSS

Teaching Case – Apple Inc: Global Supply Chain Management

Once again this year, an SCM-related teaching case received an award at the Case Center Awards and Competitions : It is entitled Apple Inc: Global Supply Chain Management and written by P. Fraser Johnson. In this case, students are placed in the role of Apple’s CEO Tim Cook, who has to make a strategic decision about the company’s complex supply chain. “Set in early 2020, it provides a detailed description of the company’s supply chain network and capabilities. Data in the case allows students to develop an understanding of Apple’s source of competitiveness and to gain insights into the management of a large, complex global supply chain network that focused on the intersection of services, hardware and software. Students will obtain an understanding of the supply chain challenges faced by Apple, in the context of supporting its corporate strategy and growth objectives.” I am sure that this case can be integrated very well into many undergraduate and postgraduate courses. This case nicely complements the 2020 award winner Apple and Conflict Materials: Ethical Sourcing for Sustainability . See also the 2017 and 2018 SCM-related winners.

Tags: Award , Teaching

About Andreas Wieland

Trackbacks / pingbacks.

• Teaching Cases – “Global Sourcing at Nike” and “IKEA Goes Online” | Supply Chain Management Research - 2023-03-02

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Subscribe via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Email Address

Recent Posts

• Theory as a Camera or Theory as an Engine
• Corporate Sustainability Due Diligence Directive (CSDDD)
• Global Supply Chains Amplify Costs of Extreme Heat Risk
• A Guided Tour Through the Qualitative Research City
• Personal Predictions for Supply Chain Management in 2024
• Methodology
• January 2024
• November 2023
• October 2023
• September 2023
• August 2023
• February 2023
• January 2023
• December 2022
• November 2022
• October 2022
• September 2022
• August 2022
• February 2022
• December 2021
• October 2021
• September 2021
• August 2021
• February 2021
• January 2021
• November 2020
• October 2020
• September 2020
• August 2020
• February 2020
• January 2020
• November 2019
• October 2019
• September 2019
• August 2019
• February 2019
• January 2019
• December 2018
• November 2018
• October 2018
• September 2018
• August 2018
• February 2018
• January 2018
• December 2017
• November 2017
• October 2017
• September 2017
• August 2017
• February 2017
• January 2017
• December 2016
• November 2016
• October 2016
• September 2016
• August 2016
• February 2016
• January 2016
• December 2015
• November 2015
• October 2015
• September 2015
• August 2015
• February 2015
• January 2015
• December 2014
• November 2014
• October 2014
• September 2014
• August 2014
• February 2014
• January 2014
• December 2013
• November 2013
• October 2013
• September 2013
• August 2013
• February 2013
• January 2013
• December 2012
• November 2012
• October 2012
• September 2012
• August 2012
• February 2012
• January 2012
• December 2011
• November 2011
• October 2011
• September 2011
• August 2011
• Better Operations
• BVL's SCM Blog
• Cottrill Research
• Global Supply Chain Blog
• Inventory & Supply Chain Optimization
• Jay, Barry, & Chuck's OM Blog
• O.R. by the Beach
• Punk Rock Operations Research
• Purchasing Insight
• SCM-blog.de (de)
• Supply Chain @ MIT
• Supply Chain and Logistics Blog
• Supply Chain Matters
• Supply Chain View from the Field
• Supply Chains Rock
• SupplyChainMusings.com
• SupplyChainNetwork.com
• SupplyChainOpz
• The Freightos Blog
• The Logistics Blog by Alan McKinnon
• The Operations Room
• WFP Logistics Blog

Supply Chain Management Research

Powered by WordPress.com .

Discover more from Supply Chain Management Research

Subscribe now to keep reading and get access to the full archive.

Type your email…

Continue reading

Supply Chain Innovation

Designed by apple in california. made by people everywhere..

Business can and should be a force for good. We uphold our values everywhere we operate, supporting the people and communities across our supply chain, and working to protect the planet we all share.

A global supply chain.

Studio Display assembly, China mainland

Apple products are made all over the world.

Thousands of businesses and millions of people in more than 50 countries and regions are part of our supply chain, contributing their skills, talents, and efforts to help build, deliver, repair, and recycle our products.

Our suppliers are required to meet the strict standards of the Apple Supplier Code of Conduct , no matter where they operate or what type of goods, services, or labor they provide to Apple.

Counterclockwise from top: Apple Watch assembly, Vietnam; Apple Watch band manufacturing, Japan; Mac Pro assembly, United States

We listen. And act.

Component manufacturing, Switzerland

We encourage everyone across our supply chain to share feedback. And we’re focused on ways to amplify their voices. We interview and survey hundreds of thousands of supplier employees, and provide hotlines so they can anonymously raise concerns directly to Apple. We use this feedback to support our suppliers in strengthening their operations and providing the best possible experience for their employees.

We investigate reported concerns quickly, with Apple experts typically arriving onsite within 24 to 48 hours. Apple has zero tolerance for retaliation, and any supplier found to have retaliated against an employee for raising a concern faces immediate consequences, up to and including termination of their business with Apple. We require our suppliers to promptly address any issues, and we regularly check on their progress until we confirm that all necessary actions have been taken.

If suppliers are unwilling or unable to correct any issues, they risk removal from our supply chain. Since 2009, we have removed 25 manufacturing supplier facilities and 231 smelters, refiners, and manufacturers of materials from our supply chain for failing to meet our standards.

Counterclockwise from top: Logistics, United States; Apple Watch assembly, Vietnam; iPhone assembly, China mainland

supplier employees directly engaged by Apple about their workplace experience in 2023

improvements made to supplier workplaces based on employee feedback in 2023, mostly focused on services like transportation and dining

people at 35 supplier sites reached by our hotline awareness campaign, which provides knowledge on how to raise workplace concerns

supplier employees contacted following interviews to ensure that they didn’t experience retaliation as a result of their participation

Labor and human rights at the foundation.

Apple Watch assembly, Vietnam

Everyone has the right to work in a safe and healthy environment where they’re treated with respect and dignity. We uphold these rights with every decision we make, including the suppliers we choose to work with, the materials we select for our products, and the processes and equipment we use to make them. We work closely with our suppliers to uphold the highest standards of labor and human rights everywhere our business reaches.

Our standards apply globally, regardless of where people live or work or which job they do. We require our suppliers to educate their employees on their workplace rights, including how to share feedback if their rights aren’t being respected. With the help of experts, nonprofit organizations, government agencies, and workers themselves, we consistently strengthen our requirements and programs to make sure they continue to meet the needs of people across our supply chain.

From top to bottom: Component manufacturing, India; Studio Display assembly, China mainland

supplier employees trained on their workplace rights since 2008

supplier employees’ working hours reviewed weekly to verify compliance with our standards

education and training sessions delivered through the Apple Supplier Employee Development Fund (SEDF)

Dedicated to continuous improvement.

Product personalization, United States

Before a prospective supplier enters our supply chain, we assess their ability to meet our standards and identify areas for improvement. We hold suppliers accountable for our strict standards through regular, rigorous onsite assessments. Conducted by independent third-party auditors, these assessments look at every detail of a supplier’s operations through worker and management interviews, detailed site walkthroughs, and thorough reviews of documentation.

Suppliers must fix any violation of our standards under the supervision of Apple experts and take steps to prevent the issues from happening again. Any suppliers that are unable or unwilling to improve their operations to meet our requirements risk removal from our supply chain.

We also support our suppliers’ continual learning and improvement by having Apple experts share knowledge, advise on best practices, and design learning plans customized to the needs of each site.

Clockwise from top left: HomePod assembly, Vietnam; Component manufacturing, Germany; Fiber-based packaging production, Austria

assessments of supplier facilities conducted in 2023, including 203 unannounced visits

of prospective suppliers prevented from entering our supply chain since 2020 for being unable or unwilling to meet our requirements

The strongest standards in hiring.

Mac Pro assembly, United States

Apple has no tolerance for forced labor. Our policies that prevent forced labor apply globally, regardless of a person’s job, location, or how they were hired. We require that job recruitment processes be free and fair, prohibiting practices such as charging fees to secure a job — even where it’s allowed by law. We’ve partnered with the International Organization for Migration (IOM), a United Nations agency, to create easy-to-use tools that help suppliers recruit people ethically and with respect for their human rights.

Our work to prevent forced labor extends throughout the employment journey, and we verify that suppliers are meeting our standards every time we engage with them, including during assessments.

Learn more about our efforts to prevent forced labor (PDF)

instances found where people were forced to work in our supply chain in 2023

people trained on the industry-leading tools in the Apple Responsible Labor Recruitment Due Diligence Toolkit in 2023

in recruitment fees paid back by suppliers to more than 37,700 employees since 2008 due to Apple’s zero-fees policy

Skills that open doors.

Through the Apple Education Hub, people across our supply chain are able to access technical education and resources on topics such as personal development, leadership, computer science, coding, robotics, recycling, and advanced manufacturing. These programs enrich supplier employees’ workplace experiences and provide the skills needed to pursue opportunities in highly technical fields. For example, graduates of our Swift coding program have launched apps on the App Store, meeting the high bar required for publication.

We partner with leading experts such as the Council for Adult and Experiential Learning (CAEL) in the United States, Zhejiang University in China mainland, and St. John’s Medical College in India to ensure that our programs are innovative, meaningful, and connected to relevant opportunities in local job markets.

Clockwise from top: Component manufacturing, Japan; Component manufacturing, India; Mac Pro assembly, United States

technical or management positions attained by graduates of our education programs

supplier employees who have graduated from our Swift coding program since 2017

The Supplier Employee Development Fund.

Apple Education Hub, China mainland

Education is a powerful equalizing force, and we are committed to providing opportunities for the people in our supply chain to learn and grow. In 2022, we announced a $50 million Supplier Employee Development Fund (SEDF) to further invest in people in our supply chain. Through the fund’s Apple Education Hub, we’re expanding access to educational opportunities for supplier employees and their surrounding communities.

In partnership with local academic institutions and non-governmental organizations (NGOs), the Apple Education Hub helps supplier employees develop the skills necessary to pursue new opportunities in our supply chain, as well as better manage their health and well-being.

From top to bottom: Component manufacturing, United States; Retail janitorial services, United States

supplier employee participants in learning and development opportunities through the Apple Education Hub in 2023

supplier employee participants in our education programs since 2008

Health starts with knowledge.

Education programs, India

Education programs, India

We’re committed to cultivating a supply chain where people can thrive — inside and outside work. This means providing the people in our supply chain with the tools needed to focus on their physical and mental health. Since 2017, millions of supplier employees have benefited from training on essential topics such as nutrition, reproductive health, early disease detection, and mental health. These programs are tailored to meet the needs of local supplier employee populations, equipping them with important knowledge and skills to take control of their own health, which they can then share with their communities to multiply the impact.

Counterclockwise from top: Health and wellness education, Vietnam; Health and wellness education, India; iPhone assembly, China mainland

people reached by our health and wellness programs since 2017

participants in our mental well-being programs in 2023

Advanced. Manufacturing.

Component manufacturing, United States

As we continue to drive innovation in our products, the machines used to build them must also advance. That’s why we’re always reviewing and strengthening our machine safety programs to help keep the people who operate manufacturing equipment safe on the job. We require suppliers to design safer equipment from the start and to conduct regular trainings on topics such as the use of safety devices, inspection basics, automation safety, and hazards associated with moving parts. We also require suppliers to regularly inspect equipment and safety procedures to confirm that machines remain in safe working condition and that the rules put in place to keep people safe are being enforced and followed. If we do find issues, we work with suppliers to correct them and prevent them from happening again.

Counterclockwise from top: Component manufacturing, Japan; Component manufacturing, China mainland; Component manufacturing, Germany

supplier sites enrolled in our new enhanced machine safety training in 2023

machines inspected for safety risks at 112 key supplier sites around the world in 2023

A culture of safety.

iMac assembly, Ireland

iMac assembly, Ireland

Everyone has the right to be safe at work, and we work hard to verify that the materials, machines, and processes used to make our products safeguard the health and safety of the people in our supply chain. We consistently update our industry-leading health and safety standards and confirm that our suppliers meet those standards through regular inspections. We also partner with our suppliers to build a workplace culture that puts health and safety at the forefront every day, including by offering training materials and providing ways for employees to speak up if they identify opportunities to improve safety practices.

Counterclockwise from top: Fiber-based packaging production, Austria; Mac Pro assembly, United States; Component manufacturing, Germany

supplier sites participated in safety training in 2023

Facility Readiness Assessments conducted before manufacturing began in 2023

Leading the way on smarter chemistry.

iPad assembly, Vietnam

Keeping workers and customers safe is a top priority that guides the decisions we make about the materials we use in our products. We require our suppliers to follow our industry-leading chemical safety standards to make sure that employees, communities, and the environment are protected against chemical hazards. This includes working together to use safer materials in our products and manufacturing processes, such as in the cleaners used during product assembly. By collaborating with leading experts and nonprofit organizations, we’re accelerating the adoption of safer chemicals across the electronics industry, fostering safer working conditions for people far beyond our own supply chain.

Counterclockwise from top: MacBook Pro assembly, China mainland; iPhone assembly, China mainland; Supplier water treatment facility, United States

suppliers reported data on the chemicals used in their facilities in 2023

new safer cleaners approved for use in our supply chain in 2023, with a total of 175 approved cleaners deployed to our suppliers since 2020

A carbon neutral supply chain by 2030.

Apple’s worldwide corporate operations have been carbon neutral since 2020, and we’ve set a goal to become carbon neutral across our entire supply chain, including the lifetime use of our products, by 2030. In 2023, we launched our first carbon neutral products with select configurations of Apple Watch SE, Apple Watch Series 9, and Apple Watch Ultra 2.

Reaching our Apple 2030 goal means we first need to continue reducing the carbon emissions from our manufacturing processes. To make this happen, we’re designing our products to be less carbon-intensive, increasing our use of recycled and renewable materials, and transitioning our entire supply chain to 100 percent renewable energy. We’ll then use carbon removal to address the small amount of remaining emissions, starting with high-quality nature-based solutions, like those in Apple’s Restore Fund.

We’ve also called on our suppliers to decarbonize their Apple production by 2030, and we’re helping them get there through targeted programs and training that aim to improve their energy efficiency and identify sources of high-quality renewable energy.

Learn more about Apple 2030

Counterclockwise from top: Supplier solar array installation, Switzerland; Apple Watch band manufacturing, Japan; Apple Watch assembly, Vietnam

of Apple suppliers expected to be carbon neutral for their Apple production by 2030

gigawatts of renewable energy operational in the Apple supply chain

Environmental rights are human rights.

Responsibly managed forest, Austria

The global impacts of climate change are becoming more apparent by the day. Our approach to protecting the planet considers not only the environmental implications of every decision we make, but also the impact of those decisions on people, particularly those living and working in communities disproportionately affected by climate change. That’s why we consider our supply chain in the context of the local communities where our suppliers operate.

Low-income and historically marginalized communities too often bear the brunt of the effects of climate change. As part of our Racial Equity and Justice Initiative (REJI), we created the Impact Accelerator for Black-, Latinx-, and Indigenous-owned businesses focused on environmental solutions. The Impact Accelerator is just one way we’re helping ensure that those most affected by environmental challenges are also helping design solutions that dismantle the systemic barriers to addressing them.

From top to bottom: Supplier solar array installation, Germany; Supplier water treatment facility, United States

Black-, Latinx-, and Indigenous-owned businesses participated in the Impact Accelerator since 2020

A zero waste mindset.

iPhone assembly, China mainland

We’re dedicated to minimizing our resource use and waste as we build our products. We require our suppliers to avoid sending waste to landfills by implementing recycling and reuse programs and developing innovative materials and recycling strategies. Today, all established final assembly sites for major Apple products are Zero Waste Certified.

Water is a critical resource shared by people and ecosystems around the world, and we’re working to protect it for future generations. Through our Clean Water Program, we’re helping suppliers reduce their water usage, promote water recycling, and prevent water pollution. Since the launch of this program in 2015, 20 of our suppliers’ facilities have achieved certification through the Alliance for Water Stewardship (AWS), the world’s leading water stewardship organization. Earning this certification requires suppliers to adopt industry-leading water conservation and stewardship practices while also engaging with their community to protect resources across their local water basin.

From top to bottom: Apple Watch band manufacturing, Japan; HomePod assembly, Vietnam

metric tons of waste diverted from landfills by Apple suppliers in 2023

gallons of freshwater saved through Apple’s Clean Water Program since 2013

Our journey to 100% recycled and renewable.

Materials recovered by Daisy, Apple’s iPhone disassembly robot, United States

Our goal is to one day build our products using only recycled and renewable materials and eliminate our reliance on mining. Each year, we move closer to that goal, with more components being made with 100 percent recycled or renewable materials. Effectively disassembling and recycling our products after their use is also a key part of our work to support a circular economy. These processes help recover valuable materials that can be used again, making the best use of limited resources and enabling us to design and build the next generation of devices to be even better for people and the planet. That’s why we help our suppliers efficiently and safely recycle our products, by providing Recycler Guides and conducting assessments to verify that they’re meeting our standards.

We maintain strict standards for the responsible sourcing of materials — whether primary or recycled. Since Apple doesn’t directly purchase or procure primary materials, we work closely with our suppliers to uphold these standards and work with partners to improve conditions in and around mining communities.

Clockwise from top: Daisy, Apple’s iPhone disassembly robot, United States; Supplier hydroelectric energy facility, Austria; Recycling, Singapore

responsibly sourced key materials in batteries, whether primary or recycled

recycled cobalt targeted to be used in all Apple-designed batteries by 2025 *

recycled rare earth elements targeted to be used in all magnets across Apple products by 2025

Read our 2024 reports to learn more about our dedication to people and the planet.

More from Apple on our global supply chain.

Your feedback makes a difference..

We welcome your thoughts, questions, and ideas about our global supply chain.

Our values lead the way.

Environment.

Our commitment to becoming carbon neutral by 2030 drives everything we do.

Inclusion and Diversity

We’re holding ourselves accountable for creating a culture where everyone belongs.

Racial Equity and Justice Initiative

We’re addressing systemic racism by expanding opportunities for communities of color globally.

We empower students and educators to learn, create, and define their own success.

We design every product and service to keep your data safe and secure.

Accessibility

Our built-in accessibility features are designed to work the way you do.

• Study Guides
• Homework Questions

6-2 Assignment Global Supply Chain Case Study inter