The company that has been chosen for the analysis is Apple Inc. The company was founded by Steve Jobs, Ronald Wayne, and Steve Wozniak in the year 1976. One of the key individuals that has played a critical part in the success of the company is Tim Cook, the company’s current CEO. Cook has enabled Apple to grow and to become a world renowned company. One of the unique qualities of Apple has been that it has a powerful supply chain that has enabled the company to become a global leader in supply chain.
Apple Inc. was chosen as the company of choice because it is a world technology leader and a leader in supply chain. Apple thus offers very critical lessons with regard to supply chain. The company manufactures phones, computers, and technological devices that come from all over the world. Additionally, the company sells its devices in almost every part of the world. The company has thus grown its popularity and success by having a strong supply chain and thus offering very critical lessons.
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The operational goals of Apple Inc. are focused on creating a well-designed product that has functionality and adds value to customers. The company also aims to develop an ecosystem of suppliers that support its business operations. It seeks to develop stellar products and services with very short timeframes at affordable costs that create value to its shareholders and customers (“Apple – Procurement”, 2020). The company also seeks to constantly expand its customers so that it can accommodate the growing number of customers. Apple also seeks to take social and environmental responsibility by engaging in responsible practices.
Apple’s key supply chain performance indicators are based on its revenue, management of inventory, and technological development. Apple’s revenues reached 260.17 billion U.S. dollars in the year 2019 and in 2018 it recorded its highest revenue of 265.6 billion U.S. dollars (“Total Net Sales of Apple Since 2004”, 2020). The continual growth in the company’s revenue is thus an indicator in the company’s strong supply chain management. The growth in the company’s revenue attracts shareholders and it is an indicator that the company can move forward successfully with new projects and improve social responsibilities. Apple’s use of technology and the implementation of technology products is also an indicator of its supply chain success. The company has successfully made use of technology to improve its supply chain process. Additionally, the company’s management of inventory management. The annual inventory of Apple has grown every year and is an indicator of Apple’s success.
Apple best practices for integrated supply chain management include proper use of technology and inventory management. Apple’s supply chain is centered on developing and implementing software technologies that should aid in supply chain. Apple makes use of sophisticated software systems and inventory control systems that are key to ensuring that the company is a global supply chain leader. Over the past few years, the company’s CEO, Tim Cook, has also taken an active role in inventory management by taking initiatives to keep as little inventory as possible. As a technology company, the proper management of inventory is important to reduce the negative impact when a competing company releases an innovative product and thus the value products in the inventory decreases (Lockamy, 2017). Apple has thus successfully kept as little inventory improving the company’s supply chain.
In conclusion, the company that was chosen for the analysis was Apple Inc. since it was a global leader in supply chain. Apple’s success in supply chain is evident through the growth in the company’s revenues. This has been possible through proper utilization of technology. Additionally, Apple engages in the best practices of inventory management and thus minimizing losses.
References
“ Apple – Procurement”. (2020). Retrieved from https://www.apple.com/procurement/
Lockamy, A. (2017). An examination of external risk factors in Apple Inc.’s supply chain. In Supply Chain Forum: An International Journal (Vol. 18, No. 3, pp. 177-188). Taylor & Francis.
“ Total Net Sales of Apple Since 2004”. (2020). Retrieved from https://www.statista.com/statistics/265125/total-net-sales-of-apple-since-2004/
