Business Management

Supply chain management

Supply chain management is the “oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer”; management of material and information flow in a supply chain to provide the highest degree of customer satisfaction at the lowest possible cost. Supply chain management involves coordinating and integrating these flows both within and among companies.

Apple Inc. purchases raw materials from various sources, mostly in Asia such as “3M Co. in Korea, AKM Semiconductor Inc. in Taiwan, Alps Electric Co. Ltd. In Japan, etc.” (Apple Supplier List, 2014); 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 (AT&T, Best Buy, T-Mobile, and so on), direct sales and other distributors, Apple Inc. will keep products at Elk Grove, California (where central warehouse and call center are located) and supply products from there. At the end of product’s life, customer can send products back to nearest Apple Stores or dedicated recycling facilities.

Prior the release of the new iPhone 6, suppliers of displays to Apple Inc. were “struggling to get enough screens ready in time for the upcoming iPhone 6 launch after a component redesign set back production” (Bora, 2014). According to Reuters, Japan Display Inc., Sharp Corporation, and LG Display Co Ltd. were selected to make the iPhone 6 screens. Aside from the screen materials, “the production of sapphire covers for the iPhone 6 was on track, and GT Advanced Technologies Inc. was estimated to supply enough sapphire to produce covers for 1.35 million to 2.25 million units of the handset by the end of 2014” (Bora, 2014). A 5.5-inch sapphire screen cover was estimated to cost $100, which was considerably more expensive than covers made from reinforced...