Purchasing and Supply Chain Strategy Report for Apple Inc. iPhone Y

This report provides a comprehensive analysis of Apple Inc.'s supply chain and logistics strategy in preparation for the launch of its new product, iPhone Y. It covers key aspects such as strategic analysis, sourcing strategies (tactical and strategic outsourcing), supplier relationship management, implementation including forecasting methods and enterprise resource planning (ERP) systems like SAP, and inventory policies tailored to the anticipated high demand. The report also highlights areas for strategic improvement, focusing on quality assurance, risk management, and shipping options to sustain a competitive advantage. Ultimately, the analysis aims to ensure a smooth product launch, attract customers, and maintain a strong position in the competitive market through effective supply chain management and purchasing strategies.

SUPPLY CHAIN AND
LOGISTICS
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 Supply chain management and logistics is
one of the major characteristic feature that
every business organization must be
concerned about (Daganzo 2014).
 Apple Inc will be launching a new product.
 As a part of the proper marketing of the
new product, the company needs to select
a proper supply chain strategy.
Introduction

 A supply chain procedure includes all the
steps involved, right from the procurement
of the raw materials to the supply of the
goods to the final consumers.
 As the competition is increasing day by day,
the companies are under a pressure of
analyzing and assessing the activities of the
suppliers and their supply bases (Barney
2012).
Background

 Vision
 Mission
 Product range
 Market position
 Competitors
 Competitive Advantage
Strategic Analysis

 Tactical sourcing
 strategic outsourcing is the long-term,
asystematic and universal approach that
acquires current and impending needs of
the organization at the lowest cost of
ownership (TCO) and helpful in reducing the
risk to the supply chain.
Sourcing Strategy

 Some of the additional issues that the Apple
Company is facing is in terms of the
production issues.
 It has some of the manufacturing issues
that might create some delay ion the
shipping and delivery (Marchi et. al 2013).
Sourcing Strategy contd.

Factor Tactical outsourcing Strategic outsourcing
Decisions usually led by CPO C-Suite-led
Activities usually outsourced Subprocess support or category
specific outsourcing support
Sourcing and category
management services for many
categories
Activities include Vendors management, spot
buying, contract management,
and help in desk support
Strategy design and management,
modelling and reporting
Benefits of outsourcing the
activities
Cheaper processing and better
contract the admin and bolt on
the activity
Involve a step change towards the
long-term solutions for managing
the procurement and overall cost
base.
Outsourced delivery functions Labor arbitrage play Primarily onshore delivery.
Sourcing strategy for each
component

Strategic Sourcing

 It is important to build up the good
relationships with the suppliers.
 The Apple Inc. maintains loyal relationships
with the suppliers as the suppliers are the
essential to the business health and for the
growth (Engel 2011).
Relationship with each
respective supplier

 It is the method by which the company can
assume how it must proceed in future.
 It helps the company to decide the course
of its future actions (Dietrich 2012).
 It is also very useful as it helps the company
to promote a new business plan.
 Makes the decision making process much
smooth and appropriate.
Implementation Forecasting

 ERP (Enterprise resource planning) is the
backbone of every organization as it helps
in managing all the organizational activity.
 Usage of SAP
 This type of software that separates the
hard-coded functionality from the core
system and makes the organization to
adopt the new features( Dormehl 2017).
Implementation system

 Apple iPhone Y is having special and
attractive features and it hasadvance
booking. iPhone Y will be kept in the stock
only for approximately one month.
 As the demand of the phone is too high. The
attractive features influence the demand of
the customers day by day.
 The company will deliver the product after
crossing all the processes of the launching
by following all the inventory policies.
Implementation inventory policy