Analysis of Issues in Apple Supply Chain

Running Head: SUPPLY CHAIN MANAGEMENT 0
Supply Chain Management

MANAGEMENT 1
Table of Contents
Introduction................................................................................................................................2
Analysis of issues in Apple supply chain...................................................................................3
Recommendation........................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

MANAGEMENT 2
Introduction
Expansion of a business comes with various challenges in extent to management of supply
chain. Management of supply chain can be understood as systematic and strategic
coordination in respect with traditional functions of business in chain of supply. The main
objective of supply chain management is embraced towards improvement of performance
with long-term perspective in advent with change in technology. An organisation can also
gain competitive advantage with the successful implementation of supply chain abilities
linked with common mechanism and various aspects in supply chain management
(Giannakis, and Papadopoulos, 2016).
For explicit understanding, Apple is selected as the company boast of having the world best
supply chain management system in the world. Steve Jobs and Wozniak found Apple in
1976. Much of what the critics and social media claim about their system; the past has shown
a lot of increased sales and efficiency in the system. One of the key supplier of Apple is
Foxconn, assembles most of Apple iPhones.
This report outline some key issues in Apple supply chain that have a significant impact on
the company business performance. In addition, it will also be identified that how supplier
development and SCM help in improvement of business performance and contribute them in
gaining of competitive advantage (Lambert, and Enz, 2017).
Analysis of issues in Apple supply chain
Based on its large markets, Apple is one of the company with the largest supply chains. It has
also extended to Africa. 121 stated that such large supply chains often includes numerous
risks that can impact productivity and profitability. Ideally, the greater the supply chain, the
more are the risks. Some of the main supply chain issues are discussed here. The primary
concern associated with the supply chain of Apple is overreliance and challenging emphasis

MANAGEMENT 3
on Falcon which has designated the role of collecting and sorting their new models. Apple
had mostly relied on mega manufacturers to assemble the new models. Moreover, sudden
changes in the company`s operations had changed which further forced the company to divert
the work in such a manner which would make equitable for company and its suppliers. Apart
from this change, Apple has another supply chain which is used for most products and these
products includes iPods, iPhones and computers. The company shares the first supply chain
with several suppliers in order to fulfil the global demand of the product. The assembling
department of Apple has been facing several issues due to poor quality work of their
employees. This has been noticed in their one of the assembly stores in china, the workers
criticised of long hours. Moreover, absence of proper and safe gear for the dealings due to a
destructive chemical situation which can be dangerous enough if it is not handled properly.
This issue has hampered and hindered the production due to destruction of supply chain.
Earlier, the Apple digital store enjoys honour of operating the iTunes store and with the help
of effective supply chain, Apple can move the music, video, games, television programs, and
publication. Apple prefers to operate through a separate system in order to observe the
control system and take steps to consider the emerging issue which has to be fixed in
particular time without affecting the other goods and services. It will become easier to fulfil
the increasing demands of the customers by focusing on the single product line.
The organisation secondary concern in relation to supply chain includes issues related
development and design. These issues had led in the branch of US where the plans are being
set for design and development. The other phase is the sourcing of the facilities which are
found in America, Europe, China and Asia. Moreover, the manufacturing phase of the
products which is located in China. After the manufacturing process, these sub-products have
been transported to the main branch and then it is distributed to the global market.