Below is a set of activities regarding Apple's operations strategies that help them gain a competitive advantage in their respectable market. Click through the resources and complete the questions and activities prescribed.
Logistics is the overall process in getting a product to the consumer. It Involves distribution (channels), transportation modes and warehousing (if appropriate), Global sourcing on the other hand is about the manufacturing of the product overseas. It includes Global web, Make-or-buy and vertical integration strategies.
View the below resources to see what logistics and global sourcing strategies Apple uses.
TASK After watching the above video and reading the diagram, the Clippings from Apple inc. 2015 annual report and the article 'The logistics behind transporting millions of iPhones from China to stores worldwide' which can be accessed via the link below the Annual Report clippings identify the following:
1. The distribution channel Apple uses 2. The transportation modes Apple uses 3. Where Apples warehousing is located 4. Where and with whom Apple globally sources their manufacturing of products?
TASK After viewing the video and all other resources below, which can be accessed by clicking on the black buttons: 1. Explain the advantages and disadvantages of each strategy of Apples supply chain management you identified in activity 1 2. Analyse how Apples supply chain management gives Apple an advantage over competitors.
Apple outsource the component creations of its product to many overseas businesses. In 2012 Cook reduced component suppliers from 100 -24, forcing Suppliers to compete. Suppliers at Apple register on SID (Supplier Information Database). They must be competitive, flexible, fast and meet quality.
Read the below article, supplier list image, and Annual report clipping below to find out how and why Apple outsources some of its components overseas.
TASK After having read the above clipping, article and image above: 1. Describe BOTH the advantages and disadvantages of Apple using multiple suppliers. 2. Examine if using this 'multiple strategy' is beneficial for Apples strategic advantage i.e. do the benefits outweigh the negatives?
Activity 3 - inventory management (20 minutes)
TASK Using the below article link, video and your own research suggest why Apples inventory management strategy leads to competitive advantage.