Apple Supply Chain

Apple took steps early on to manage its supply chain and the suppliers within it. The company established a formalized list of expectations for suppliers and quickly moved on to creating exclusivity agreements in exchange for volume guarantees.

Over time, the company has developed relationships with suppliers, which has helped Apple quickly scale operations to customer demand for existing and new products. Working with its supply chain partners, Apple helped develop new manufacturing processes, some of which have been the subject of patents filed by the company.

In addition, the company has used its deep pockets to ensure adequate production capacity by placing high volume pre-orders with suppliers. This has also had the effect of preventing competitors from gaining access to the same manufacturing resources.

Although outsourcing has provided Apple with advantages, it hasn’t come without risk. Outsourcing can leave a company vulnerable to disruptions in key links of its supply chain, potentially caused by anything from natural disasters to changes in international trade agreements. Apple also has been criticized over working conditions in its suppliers’ factories and warehouses

Example :

Apple has long been highly regarded for its innovative products, which combine advanced functionality, exceptional user experience and attention to detail in design

Supply Chain Map is the way to express large system from points of origin to points of consumption in simple to understand manner. Information from annual report is also used to produce Apple Supply Chain Map.

Apple Inc purchases raw materials from various sources then get them shipped to assembling plant in China. From there, assembler will ship products directly to consumers (via UPS/Fedex) for those who buy from Apple’s Online Store.

For other distribution channels such as retail stores, direct sales and other distributors, Apple Inc will keep products at Elk Grove, California (where central warehouse and...