Introduction
In the modern world, business is a fundamental activity that helps to create the basis for the further evolution of society. It can also provide numerous benefits for people engaged in entrepreneurship, starting from stable income and ending with a privileged position in a community. For this reason, it is now possible to observe a tendency toward an increase in the number of actors in the business world. This trend reflects a high level of rivalry.
Under these conditions, every aspect of the functioning of a particular company becomes a crucial part of positive outcomes in the pursuit of significant competitive advantage. The company’s supply chain is obviously one of these elements as its efficient management can help in competing with challenging rivals and remaining beneficial. For this reason, this paper is devoted to a comprehensive investigation of the supply chain for Apple’s iPhone as a factor, as mentioned above, that contributes to the company’s outstanding results.
Background
Every company that manufactures particular products has a unique approach to the manufacture, transportation, and distribution of a commodity. Thus, this very sequence of processes could be identified as a supply chain (Heizer, Render, & Munson, 2017). As can be seen from the definition, these activities play a fundamental role in the functioning of companies as they encompass all stages of the cycle. That is why global corporations like Apple devote much attention to managing the supply chain and preserving its efficiency at a high level. At the moment, Apple is an international company that locates its facilities in numerous countries across the world. For this reason, its supply chain should possess an appropriate level of efficiency to cope with diverse tasks and ensure positive outcomes and preservation of Apple’s leading position.
Analysis of the Phases
Thus, the suggested supply chain consists of several phases. The first one is sourcing, which means that the company looks for suppliers and manufacturers who can provide all the details, hardware, and software needed to create an iPhone. At the moment, Apple has partners in China, the Asian region, and Europe who are responsible for the delivery of all parts to assembly centers (Webb, 2017). This stage is critical for the company’s functioning as the quality of components determines the basic characteristics of the final product. For this reason, Apple devotes much attention to its suppliers and to cooperation with them.
The second phase of the supply chain is manufacturing. As a global corporation with a multimillion-dollar income, Apple Inc. must ensure that an appropriate number of iPhones will be created. For this reason, the greater portion of its production assets is located in China, which is now one of the world’s biggest manufacturing centers. The company adheres to outsourcing practices to benefit from the outstanding industrial capacity of China and produce the needed number of iPhones.
Warehousing is another phase of the supply chain. The company has to store all products manufactured during the previous stage and guarantee timely delivery to particular destination points. For this reason, Apple Inc. might either use immediate warehousing via FedEx or specific facilities placed in strategic regions like California (Webb, 2017). This practice helps to preserve the appropriate quality of all products and ensure that they are kept from harm.
The next stage is the distribution. Today, Apple sells iPhones across the globe. Therefore, the company uses online and retail stores, direct sales, and retailers’ services to provide customers with the needed products. The efficiency of this phase determines the income and number of purchases. For this reason, Apple tries to establish efficient patterns of cooperation with retailers to attain a gradual increase in sales.
Return is the final phase of the company’s supply chain. Working in an arena categorized by harsh competition, Apple must preserve its positive image and improve its cooperation with clients. For this reason, the company uses a reverse logistics practice to ensure that if some defects are to be found, a customer can return a device according to the main terms of the guaranty.
Evaluation
These are the primary phases of Apple’s supply chain strategy. Regarding its fundamental aspects, the given approach to manufacturing, storing, and delivering goods can be considered efficient as it helps the company to preserve its leading position. Thus, in cooperating with numerous suppliers, Apple acquires all components needed to guarantee the outstanding functioning of its phones. Moreover, by using factories in China, the company decreases the manufacturing price for their goods and, at the same time, increases the number of final products (Heizer et al., 2017).
Exploring Chinese industrial capacity, the company acquires a significant competitive advantage (Sarkar, 2017). Additionally, the phase that includes returns ensures that all clients will be satisfied with the quality of products. For this reason, the company adheres to a strategy that encompasses quality, efficiency, and responsiveness.
Performance
Evaluating the current performance of the supply chain, the company’s overall success is clear. At the moment, Apple Inc. is one of the leaders in the mobile phone market and demonstrates tendencies for further growth. It could be considered credible evidence supporting the outstanding efficiency of the chosen pattern and its ability to meet existing requirements for quality, time, and cost.
Negotiation Aspects
Nevertheless, the efficiency of Apple’s supply chain to some degree depends on particular aspects of negotiation. For instance, the company works with numerous suppliers who have an obligation to deliver specific products to destination points (Wright & Kaine, 2015). However, if some company fails to fulfill its commitments, a collapse of the entire supply chain might be observed. Thus, by means of negotiation, Apple ensures that all terms of an agreement will be followed, and the company will be able to manufacture products without delays.
Opportunities and Issues
Finally, Apple has numerous opportunities for a further rise. These are preconditioned by the nature of the company and its focus on technologies that are becoming increasingly popular nowadays (Heizer et al., 2017). That is why the further development and sophistication of the company’s supply chain can be predicted. It will acquire new phases or peculiarities to support the company’s future rise and rapid evolution. However, this complexity might become a major concern and a problematic issue in the future as it may demand numerous resources.
Conclusion
Altogether, Apple Inc. is one of the leaders in the sphere of mobile phones and technologies. For this reason, its supply chain should be efficient enough to guarantee that all components will be delivered to manufacturing centers and that final products will be distributed through online or retail stores. In general, the company has managed to create an efficient approach that contributes to high revenues and preservation of its leading status. The existing supply chain avoids excessive sophistication and guarantees that all critical phases will receive appropriate attention to ensure the high quality of products or guarantee their return if any defects have been found. This improves Apple’s image and helps in acquiring new customers in different states.
References
Heizer, J., Render, B., & Munson, C. (2017). Operations management: Sustainability and supply chain management. New York, NY: Pearson.
Sarkar, S. (2017). The supply chain revolution: Innovative sourcing and logistics for a fiercely competitive world. New York, NY: AMACOM
Webb, J. (2017). Apple’s supply chain attracts criticism for performance but also praise for sustainability. Forbes. Web.
Wright, C., & Kaine, S. (2015). Supply chains, production networks and the employment relationship. Journal of Industrial Relations, 57(4), 483-501. Web.