Contents
Introduction
Supply Chain Map
The Supply Chain
Figure
References
- Introduction This report shows you Apple’s iPhone supply chain. It will point out some areas that could be improved and will explain why Apple could have chosen this route for their supply chain.
- Supply Chain Map
- The Supply Chain The supply chain for Apple’s iPhone is on the previous page.
As you can see from the supply chain numerous different parts are needed to assemble an iPhone. Six out of the ten components needed in order to start constructing the iPhone come from Taiwan.
This could be seen as a threat to Apple and if they were to re-structure the supply chain I think that they should re-consider using so many resources from one source. If Taiwan went into any type of economical decline or beca
...me politically corrupt in any way then that could completely destroy Apple’s iPhone industry.
Six of the ten components could become unreachable for some time. It could be seen as a bottleneck in the supply chain and other phone manufacturers could take advantage of this and be able to source their parts more quickly and cost-effectively. Apple could have been looking at it from a different angle though. They may have seen it as a cost-saving way of getting the majority of the parts needed.
They can use one shipment to carry them all and only have to pay import and export taxes in one transaction. I don’t believe that the supply chain is operating to its full potential and therefore chain reversal is needed. This will only be realized through improved vertical coordination throughout the entire supply chain. It is going to mean that there will be majo
changes in the structure, culture, and behavior of all the firms involved in sourcing the parts and manufacturing the iPhone. It may even mean some of the firms relocating to say China for instance as Apple may decide that they want the whole process and all the components to originate from the same country as it will be so much quicker for them to produce a unit and therefore increase return on investment and maximize profit margins. The first tier supplier in the Apple iPhone supply chain is the retailer selling the iPhone to the purchaser.
This could be a phone store. The second-tier supplier in the Apple iPhone supply chain is the distribution company used to get the iPhone to the retailer that is known as the first-tier supplier. The 3rd tier supplier in the Apple iPhone supply chain is Apple Shenzen in China. This is where the iPhone is put together and the 2nd tier supplier collects and distributes from.
References Schultz
The Customer Care and Contact Center Handbook, 2002, ASQ Quality Press Van Weele, A., Purchasing and Supply Chain Management, fourth edition, 2006, Thomson, Devon Waters, D., Logistics An Introduction to Supply Chain Management, 2003, Palgrave, Suffolk http://www. apple.com/ http://scm. ncsu. edu/public/procurement/8newworkplace. html#4 http://emeraldinsight. com/Insight/ViewContentServlet;jsessionid=3B3DEA4329EDB7D55B3914198529CC21? Filename=Published/EmeraldFullTextArticle/Articles/1770020103.
html http://www. shmula. com/304/the-apple-iphone-supply-chain
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