Organizational Overview
The organization that will be the subject of the Procurement Plan Project that I will be working on during this course is Apple. My choice of organization is a corporate structure called a commercial (private) entity. Its primary industry is functional competence areas rather than specific goods. Apple’s level of government consists of a hierarchical organizational structure where top management has complete control over the company.
Materials Purchased
China is a crucial global market for Apple; according to the 2021 suppliers list (Apple, 2022), Chinese and Hong Kong-based suppliers are growing to hold a higher stake than American and Japanese vendors. Of the 615 production facilities, 156 are physically located in China (Apple, 2022). To promote change across the industry, Apple has become a leader in waste recycling and materials selection technologies.
Bid and Proposal Documents
According to the bid documents, the prerequisites include a dedication to strict quality control. Suppliers are also required to commit to upholding the highest social responsibility standards. Proposal documents imply that the best providers are those aware of the bars and culture.
Contract Types
The contract types used for procurement activities within Apple are either learning about and comprehending the business or looking for opportunities to offer value, which the organization values. Therefore, contract types used for procurement activities must consider this dynamic and quickly adapt to shifting market conditions.
Third-Party Logistics (3PLs)
3PLs can be defined as a supply chain comprised of a wide variety of outside vendors. Recent studies reveal that Apple’s use of 3PLs consists of 785 suppliers, 349 of which are based in China and spread across 31 nations (Johnson & Flynn, 2014). The technological company Apple, recognized for its sleek designs and user-friendly interfaces, is well-known for outsourcing its manufacturing, particularly to China.
Supplier Relationship Management
The business collaborates with a third-party group to contact supplier workers questioned for evaluations to ensure they were not reprisal targets. It also collaborates with supplier management to validate that appropriate management practices and systems are in place as required by the Code and Standards (Apple, 2022). It is also important to uphold enduring and strategic connections with the suppliers and reduce the manufacturing cycle time from four months to two months by outsourcing the production to China.
Contract Closeout
Apple ensures that the products or services procured meet expectations by delivering items by the schedule, via the designated carrier, and to the location noted on the front of the relevant PO. I will finalize payments to suppliers by allowing the sellers to select the least-priced option without a carrier designation in the PO (Sodhi & Tang, 2019). Suppose the Seller fails to deliver the Goods within the specified time frame.
Maintaining Supplier Performance
From smelters and refiners through the manufacturing partners who construct the components and carry out the final assembly of the products to recyclers, the work done in the supply chain is complicated and varied. It also comprises companies that offer services to support the business, such as logistics partners who ship goods globally and janitorial teams who look after our retail outlets. Suppliers in all these sectors are subject to the regulations and applicable laws.
References
Johnson, P. F., & Flynn, A. E. (2014). Purchasing and supply management (15th ed.). New York, NY: McGraw-Hill.
Sodhi, M. S., & Tang, C. S. (2019). Research opportunities in supply chain transparency. Production and Operations Management, 28(12), 2946-2959. Web.
Apple. (2022). How We Work with Suppliers Upholding Apple’s values in our supply chain. Web.