Q1.
Supply chain involves a set of activities that aim at transforming goods from raw material stage to the final stage where they are distributed to the consumer. As demonstrated by Apple Inc’s case, a supply chain consists of five essential elements (Supply Chain Operations, 2013). These include sourcing or purchasing of resources to manufacture goods; where Apple sources from the U.S, Europe, China and other countries for its raw materials. The second element is manufacturing where Apple assembles it products in China. Thirdly, the company manages the inventory of raw materials and inventory of finished goods in its warehousing facilities in China and the United States. Fourthly, the company distributes its goods through retail store, online stores and direct sales through retailers, wholesalers and network carriers (Supply Chain Operations, 2013). Fifthly, the company manages returns through warranty returns, trade in program, and reuse platform.
Q2.
Producing an order and shipping it a customer involves the following steps. The first step is the receipt of the order through shopping cart integration, via CSV order file or through manual order entry. Secondly, the order is printed and sorted based on the shipping methods. Thirdly, picking, packing and shipping the order occur once the orders have been printed. Fourthly, once the orders are shipped, shipping confirmation is done with the customer to close the process.
Delegate your assignment to our experts and they will do the rest.
Q3.
Some of the risks behind include unsatisfied customers, returns in the supply chain process, and customer’s loss of confidence in the company and its products (Supply Chain Operations, 2013). Effectively, the supply chain fails to operate optimally.
Q4.
Advantages of international operations include gaining new customers, reduced tariffs, lower taxes and favorable business environment in the host country. Further, courtesy of its operations in China, Apple Inc, has expanded its market, established low-cost production facilities and gained competitive advantage in the Asian market through its products (John, 2016). The company has also benefited from economies of scale in its global operations.
Conversely, foreign operations have exposed the company to scrutiny, especially in ethical business practices. Secondly, the company confronts different and well-known social, political and cultural forces in doing business in different markets around the world (John, 2016). However, despite these challenges, the advantages accruing from international operations have long-term benefits.
Q5.
Global supply chains have a responsibility to ensure ethical behavior is different ways. Firstly, they need to audit ethics and sustainability of their suppliers, contractors and vendors in the supply chain (Harbert, 2016). Secondly, Apple Inc. like other companies must have formal accountability framework to offer a focus and ownership for codes of conduct (Guthrie, 2012). They need to ensure that effective communication of the ethical standards is the foundation of their ethical business operations. They need to audit their results, ensure that their information systems are working and commit to social responsibility and ethical business practices.
Q6.
Unethical business practices in the supply chain include unethical sourcing of raw, manufacturing and distribution of goods and services. For instance, child labor in some of the Asian contractor firms is an unethical practice. Secondly, poor wages, unsafe and unhealthy working conditions in contractor factories for Apple products are unethical practices (Guthrie, 2012). Further, excessive working hours without compensation is an unethical issue that confronted Apple in the recent past.
Q7.
Trading blocs like the European Union and North American Free Trade Agreement are fundamental in improving ethical practices since they formulate ethical policy guidelines that all member states and corporations wishing to operate in their areas must follow and comply. Secondly, trading blocs audit ethical practices in corporations working in their region to ensure that all players comply with human rights provisions, fair trade policy and practices and ethical competition (Guthrie, 2012).
Q8.
There are a myriad of challenges that face international supply chains. These include market volatility and uncertainty, economic contractions and slow recovery cycles that affect how firms can manage sourcing, manufacturing, invoicing and other activities in their supply chain (Swartz, 2014). Further, expansion into new markets implies that firms must deal with new legal issues, tax regimes and a complex of local issues.
References
Guthrie, D. (2012) Building Sustainable and Ethical Supply Chains, Accessed from
https://www.forbes.com/sites/dougguthrie/2012/03/09/building-sustainable-and-ethical-supply-chains/#6a76ea824179
Harbert, T. (2016) Ethics and the Supply Chain, Business Researcher, Accessed from
http://businessresearcher.sagepub.com/sbr-1775-99621-2728048/20160425/ethics-and-the-supply-chain
John, L. (2016) Advantages and Disadvantages of International Operations, Accessed from
http://www.siteeconomics.net/2016/05/advantages-and-disadvantages-of.html
Supply Chain Operations (2013) Is Apple Supply Chain Really the No.1? A Case Study,
Accessed from http://www.supplychainopz.com/2013/01/is-apple-supply-chain-really-no-1-case.html
Swartz, S. (2014 October 6) Challenges for Today’s Global Supply Chain: Cost, Profitability and
Personalization, Accessed from http://www.inboundlogistics.com/cms/article/challenges-for-todays-global-supply-chain-cost-profitability-and-personalization/
