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Then, good management of related function is essential.
From the above graphic, Apple Inc accelerates the new product introduction by acquiring licensing and 3rd party businesses.
The whole process looks very similar to that of other industries.
Information from the 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.
The above picture shows that inventory turnover of Amazon and Apple is 10 and 59 respectively (cost of goods sold of digital content/downloadable products are excluded).
From the face value, Apple seems to be more efficient. Apple Inc is now a marketing company with no manufacturing facility but Amazon is a distributor of general merchandise.Interesting point is that Apple Inc has to make pre-payments to some suppliers to secure strategic raw materials.Supply Chain Map is the way to express large system from points of origin to points of consumption in a simple to understand manner.At the end of a product’s life, the customer can send products back to nearest Apple Stores or dedicated recycling facilities.2) Apple’s Supply Chain Challenges What does it feel like to be “Apple Inc”?It’s pretty natural that Amazon has to keep more stocks then inventory turnover can be much lower.Number of Key Suppliers Supply chain management is about the relationship between trading partners.From there, the assembler will ship products directly to consumers (via UPS/Fed Ex) 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 call center are located) and supply products from there.There are many challenges to overcome, for example; The above information is also from the annual report.As you can see, most of the risks are on the supply side. Some people in the blogosphere said that Apple Supply Chain is not that complicated.