Supply Chain Management: Doc

Running Head: SUPPLY CHAIN MANAGEMENT 1
Sustaining Organizational
Performance: Apple Inc.

SUPPLY CHAIN MANAGEMENT 2
Executive Summary
Supply Chain Management is the most significant processes for an organization. It includes
carious activities like to plan, control and implement the product flow from receiving raw
materials and manufacturing through distribution to the end customers in cost effective way. In
today’s business environment, each and every organization needs to focus on managing its
supply chain globally. The major objective of this report is to discuss different aspects about the
supply chain management system of Apple Organization. Apple Inc. is an American organization
that design and sells online services, consumer electronics and software. The organization is
working very effectively in its industry and gaining competitive advantages over its competitors.
The report is prepared on the basis of given case study, i.e. “Apple INC.: Managing a Global
Supply Chain”. The below-report includes various challenges which are faced by the Apple
under its supply chain process. Moreover, it comprises of the discussion about the benefits and
limitations of sourcing strategies of Apple. At the end, it discusses about the performance
objectives of Apple suppliers. These suppliers are making several efforts to meet these
objectives.

SUPPLY CHAIN MANAGEMENT 3
Table of Contents
Introduction......................................................................................................................................4
Critical Analysis of Supply Chain Challenges................................................................................4
Sourcing Strategies..........................................................................................................................6
Benefits........................................................................................................................................6
Limitations...................................................................................................................................7
Supplier Performance Objectives....................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

SUPPLY CHAIN MANAGEMENT 4
Introduction
Apple is one of the most successful organizations in the area of Information Technology and
Mobile Phone industry. It is an American multinational corporation which has started its
business operations in the year 1976 with personal computers only. The organization was
founded by Mike Markkula, Steve Jobs and Steve Wozniak. With the passage of time, Apple has
expanded its business operations in offering many products such as hardware, software, digital
distribution, consumer electronics and online services (Apple Inc. 2017).
This firm used and managed a global supply chain with innovative development in United States.
Moreover, it outsourced manufacturing in Asia and product-parts sourced from its suppliers
worldwide. This report is prepared to answer the questions given in the case study. The case
study shows the global supply chain process of Apple. The below report includes the critical
analysis of supply chain challenges which are faced by Apple. There is the discussion about the
benefits and limitations of sourcing strategies in context of Apple Organization. Furthermore, it
includes the performance objectives which Apple’s suppliers expected to meet. To become a
market leader, Apple needs to focus on its supply chain management and sourcing strategies. The
organization should make efforts to deal with the limitations of sourcing strategies so that it can
provide the products on time with highest quality components.
Critical Analysis of Supply Chain Challenges
However, Apple Inc. has managed its global supply chain with creative development in United
States and other nations. The organization has adopted various supply chain strategies to deliver
its products to final customers. Still, the organization has faced various challenges in the area of
global supply chain. The organization should make efforts to overcome these challenges by
implementing some effective strategies. One of the major challenges of the organization is the
new product development at Apple (Richard, 2014). The development of new series of iPhone
seems to be saturated in recent times. The products of Apple are popular for made by assembling
several components which are availed from different suppliers. Manufacturing new major
product means that there will be need of large number of components for the production. It has
made supply chain network of Apple more extensive and management more complex. The given
case shows that market research indicated that there were some quality defects in supplier’s parts