University Assignment: Supply Chain Analysis of Apple Inc.

This report provides a comprehensive analysis of Apple Inc.'s supply chain management (SCM). It begins with an introduction to SCM and its importance, followed by a literature review that explores key issues within Apple, including the MacBook's battery performance, the affordability of products, and the need to reinvigorate the accessory market. The report delves into these issues, examining their causes and impacts, and provides a detailed background of Apple Inc. It then describes Apple's organizational supply chain measurement system, highlighting key factors contributing to its success. The findings section presents a case scenario for Apple Inc., analyzing the issues and offering recommendations for improvement, such as enhancing battery performance, making products more affordable, and revitalizing the accessory market. The report also discusses potential system, culture, policy, and process barriers that could hinder these improvements and concludes with a summary of the findings and recommendations.

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management: Apple
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
1. Introduction..................................................................................................................................3
2. Literature Review........................................................................................................................3
2.1 Improvement of the Battery Performance of MacBook........................................................3
2.2 Making Affordable Products.................................................................................................4
2.3 Reinvigorate the Accessory Market of Apple.......................................................................5
3. Key Issues in Apple Inc...............................................................................................................5
3.1 Improvement of the Battery Performance of MacBook........................................................6
3.2 Making Affordable Products.................................................................................................6
3.3 Reinvigorate the Accessory Market of Apple.......................................................................7
4. Background of the Company.......................................................................................................7
5. Description of the Organizational Supply Chain Measurement System.....................................8
5.1 Key Factors Contributing to the Success of the Supply Chain of Apple...............................9
6. Findings of the Case Scenario for Apple Inc...............................................................................9
6.1 Improvement of the Battery Performance of MacBook........................................................9
6.2 Making Affordable Products...............................................................................................10
6.2.1 Analysis............................................................................................................................10
6.3 Reinvigorate the Accessory Market of Apple.....................................................................11
7. Recommendations......................................................................................................................12
7.1 Recommendation for Improvement of the Battery Performance of MacBook...................12

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7.2 Recommendation for Making Affordable Products............................................................13
7.3 Recommendation for Reinvigorate the Accessory Market of Apple...................................13
8. Possible System, Culture, Policy and Process Barriers.............................................................13
9. Conclusion.................................................................................................................................14
References......................................................................................................................................15

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1. Introduction
SCM or supply chain management can be referred to as the proper controlling of the flow
of different services as well as goods for proper inclusion of several processes, which transform
all types of raw materials into finalized products (Christopher 2016). SCM includes an active
streamlining of the supply sided activities of the specific business for the core purpose of
maximization of customers’ value and obtaining competitive benefit within the market place.
SCM is completely on the basis of the ideology that nearly all products, which come to the
market, often result from the efforts of several companies for making up a supply chain
(Monczka et al. 2015). This report provides a brief description on SCM for the most popular and
significant organization, Apple Inc. with relevant details.
2. Literature Review
Apple Inc. has been doing business for several years and in spite of having an excellent
supply chain, they are unable to deal with certain complex situation and issues in the
organization. These issues have been referred to as the most distinct and they are required to be
avoided in top priority (Fahimnia, Sarkis and Davarzani 2015). The major issues included poor
battery performance of the MacBook products, unaffordable or highly expensive products and
finally lack of innovation in the products. These distinctive problems are lowering the business
of Apple Inc. and proper description of the issues with their causes and suitable suggestions and
recommendations are provided in the following paragraphs:
2.1 Improvement of the Battery Performance of MacBook
High battery performance is needed for any product to ensure that the product would be
lasting long or providing services for longer period of time. However, in the organization of

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Apple, different products like MacBook have been registered with poor battery performances.
Due to the low power mode, the product does not allow the users to stretch out the last of 10 to
20% of the total battery life and hence the major services are being killed. Moreover, the
backend applications are also closed eventually with such battery life.
Figure 1: Battery Life of MacBook
(Source: https://www.pcworld.com/article/3157392/tested-the-truth-behind-the-macbook-pros-
terrible-battery-life.html)
2.2 Making Affordable Products
The organization is responsible for making some of the most significant and noteworthy
expensive products in their business. The main reason is their expensive SCM. According to
Hugos 2018, there are five vital parts of supply chain, which include plan as well as strategy,
source of the raw materials, manufacturing by focusing on the efficiency and productivity,
delivery as well as logistics and finally the return systems for any type of unwanted or defective

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products. The SC manager tries to reduce the shortages and keep their expenses down. SCM is
the proper management of different goods or services, for ensuring that the business becomes
effective and efficient, as compared to others (Mangan and Lalwani 2016). SCM is responsible
for representing an effort by the suppliers for proper development as well as deployment of
various supply chains, which are extremely economical and efficient as possible. Hence, due to
these reasons, the supply chain is kept on top priority by Apple and the product costs are
increased, which often become unaffordable for people.
2.3 Reinvigorate the Accessory Market of Apple
The organization of Apple has to include various innovative and creative aspects in the
products. However, in past few years, they have not involved any new product. The supply
chains eventually cover every aspect from the production to development of products for
understanding the information systems, required for directing the major undertakings. Hence,
reinvigorating of the accessory market is required for Apple. SCM attempts in centrally
controlling or linking the distribution, shipment and production of a product. Stadtler 2015 stated
that, after management of the supply chain, the organizations have the capability to cut excessive
expenses and then deliver the products to the customer faster. It is being done by keeping it
tighter controlling of the internal inventories, distributions, inventories of the organizational
vendors, internal production and sales. They would require to ensure that the issues are being
resolved successfully and the supply chain is able to provide new products to their customers.
3. Key Issues in Apple Inc.
Apple Inc. is one of the most significant and important organizations in the world that
had been ruling the entire technological and software market for past several years (Fredendall

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and Hill 2016). However, in recent days, there had been some of the most noteworthy issues,
being faced in the business and these are provided in the following paragraphs:
3.1 Improvement of the Battery Performance of MacBook
The first important and significant issue that is being faced in the organization of Apple
Inc. is that they require major improvement in the battery performance of MacBook. According
to the survey of 2016 and 2017, it is being observed that most of the machines are eventually
underperforming in the marketed longevity of Apple and as a result, they had been facing some
of the most significant and noteworthy losses in the business (Saenz et al. 2015). Moreover, they
are unable to manage their business expenses, as more extensive battery solution has flunked the
testing at the last minute; hence the MacBook was underequipped eventually. Due to the issue of
battery performances, the organization is also losing their intended and existing customers.
3.2 Making Affordable Products
The second important and significant issue that is being faced in the organization of
Apple Inc. is that they have their prices quite high and as a result, most of the customers from
lower and middle level background are unable to afford their products (Meredith and Shafer
2019). One of the major and the most significant reasons of their expensive products is that the
supply chain of the business is quite imperative and they have to store their warehouses and raw
materials in the most effective manner. They would have to lower their prices to a high level, so
that it becomes easier for them to ensure that all types of customers are able to afford the
products and services successfully (Wang et al. 2016). The raw materials and vendors should be
from local background, so that the technologies used here do not incur huge costs, as compared
to the rest of the companies. It would help them in getting record hardware sales as well as chart
topping application downloads.

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3.3 Reinvigorate the Accessory Market of Apple
Another distinct and important issue that is being faced in the organization of Apple Inc.
is that they do not have fresh and innovative products in the respective accessory market. The
pitch of Apple for the accessory developers for the previous thirteen years has been paying the
fees, following the rules, making limited accessories for the customers and gathering money
from the customers. Moreover, the accessories were being well accepted by the customers
(Genovese et al. 2017). However, in recent years, the popularity has gone down to the lack of
new products and customers are turning to the less expensive products in other organizations.
4. Background of the Company
Apple Inc. is a popular and significant multinational technology oriented company that
has its headquarters in the United States of America. It is mainly responsible for planning,
developing as well as selling various consumer based electronics, computer software as well as
online service. Apple Inc. is considered as one of the big 4 technology organizations, with
Amazon, Microsoft and Google (Apple.com. 2020). The organizational hardware products
involve the iPhone smart phone, Mac personal computer, Apple Watch smart watch and many
more and that of the software products involve the macOS, iPadOS, tvOS, iOS and watchOS.
The organization was founded in the year of 1976 by Steve Jobs, Ronald Wayne and Steve
Woznaik. The online services involve iTunes Store, Mac App Store, Apple Music, iCloud, Apple
TV+, iOS App Store and iMessage. The other major services involve Apple Store, Apple Care,
Apple Card, Apple Pay, Genius Bar and Apple Pay Cash.
It was being merged as Apple Computer Inc. within January of 1977 and the sales of the
computers have grown majorly. The total number of employees is 137000 at present situation.
After initiation of the organization, the respective founders recruited a staff of several computer

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designers and comprised of a specific production line. Apple eventually went public during the
year of 1980 for their instant financial success and in the next few years, they shipped several
new computers that feature creative GUI like the Original Macintosh during the year of 1984 as
well as different marketing advertisements for the widespread received products (Apple.com.
2020). However, due to the high prices and limited applications of the products, major issues are
being caused for understanding the power struggles within their executives. Apple Inc. has been
leading the market of technological products for the last 30 years and they have been termed as
the best quality product manufacturer for the people.
5. Description of the Organizational Supply Chain Measurement System
Apple Inc. is referred to as one of the most significant and well renowned supply chain
and as a result, they have been capable to generate the most powerful supply chain within the
entire world. They are the leader for creativity, product designing as well as development,
software ecosystems, marketing and branding (Jabbour and de Sousa Jabbour 2016). The
organization is selling products of Apple through their respective retail stores, direct sales forces,
retailers, wholesalers, online stores and third party cellular network carriers. The digital content
as well as applications are also being sold by them through Mac App Store, iBooks Store and
iTunes Store. The current success of Apple is being attributed to the organizational senior level
for streamlining the supply chains by simply outsourcing of manufacturing and also helping the
organization for reducing the inventory levels (Wang and Cullinane 2015).
There had been several conflicting overviews of the success, however several people
believe that the SC model, software system and proper inventory control are the best weapons for
keeping them as the global leader (Dubey et al. 2017). The sustained leadership of the business
in their supply chain for demanding creation capabilities. They have purchased various materials

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and components from several suppliers and they ship through air transportation for saving time
as well as money to the respective assembling plants within China. From that particular point,
various products are being shipped through UPS or FedEX directly to their consumers, who have
purchased different products of Apple from their respective online store (Chen, Preston and
Swink 2015). Moreover, the distribution channels are also highlighted on top priority for
dedicated recycling facilities.
5.1 Key Factors Contributing to the Success of the Supply Chain of Apple
The first and the foremost factor, which contributes to the total success factor of the
supply chain of Apple Inc. is that it focuses on making effective products with the help of ground
breaking innovation. Moreover, they also supply different products, which are not at all seasonal
and also comprise of a total life-cycle of over twelve months (Rostamzadeh et al. 2015). The
other major factor includes reduction in the total number of warehouse to 1 centralized location
within the USA and also synchronizing the data within this central warehouse and its own stores
to make the operations cost effective and efficient. Furthermore, Apple Inc. has also considered
different factors in their business for supply chain, such as outsourcing of manufacturing; thus
lowering the manufacturing cycle time and even requesting price reductions for asking the
suppliers in relocating close to the factories of Apple (Rajeev et al. 2017). They have also
reduced the total number of several major suppliers, who are included in manufacturing,
shipping as well as storing. As a result, demand forecasting has also become accurate and
effective, as compared to the rest of the organizations.
6. Findings of the Case Scenario for Apple Inc.
6.1 Improvement of the Battery Performance of MacBook
6.1.1 Analysis

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The product of MacBook has registered an issue of battery consumption and several
similar complains have been placed in the organization (Saberi et al. 2019). Due to the excessive
usage of batteries, the organization is often unable to manage and maintain their customers to a
high level for ensuring better effectiveness and efficiency in the business.
6.1.2 Measurement System Used
As per the research and qualitative measurement system, it is being observed that in the
MacBook, the working process is quite slower as compared to the rest of the products and hence
they are unable to provide maximum efficiency in the battery backup (Grant, Trautrims and
Wong 2017). The customers are hence unhappy with this type of battery in their products.
6.1.3 Suggestion
The best suggestion for this particular issue in Apple Inc. is that the management should
change their working process for MacBook Pro. It would become faster and the issues would be
successfully eradicated without much complexity.
6.2 Making Affordable Products
6.2.1 Analysis
The products of Apple Inc. are extremely expensive and should be made affordable for
all types of customers in the entire world (Brandenburg and Rebs 2015). As a result, it has
become unaffordable for several customers to get access of these distinct products.
6.2.2 Measurement System Used
As per the research and qualitative measurement system, it is being observed that in the
business of Apple Inc., the maximum customers belong to the higher class and have the ability to

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afford expensive products eventually (Tseng, Lim and Wong 2015). As a result, the middle class
and lower class customers do not get the opportunity to use these products.
6.2.3 Suggestion
The best suggestion for this particular issue in Apple Inc. is that the management should
reduce the costs and expenses of their products to a high level, so that all types of customers are
able to afford their products without much complexity and issue.
6.3 Reinvigorate the Accessory Market of Apple
6.3.1 Analysis
It is being observed that the products of Apple Inc. do not comprise of any type of
innovation and creativity and hence they are unable to deal with the complexities and issues
faced in the accessory market (Tseng, Lim and Wong 2015). Apple has eventually reduced their
once thriving accessory market into major trouble and the customers are changing their selection
of products majorly.
6.3.2 Measurement System Used
As per the research and qualitative measurement system, it is being observed that in the
organization of Apple Inc., the popularity has dropped as they are only launching new products
for iPhone and Apple Watch (Schoenherr and Speier‐Pero 2015). Although, the phone is
extremely effective and significant as compared to the rest of the phones and watches, customers
always have a choice for innovation.
6.3.3 Suggestion