The most successful businesses have an effective supply chain management strategy. The volatile market conditions and changing customer demands have made it crucial for companies to prepare for unseen challenges in the supply chain (Jacobs & Chase, 2021). Based on this, Apple’s management is keen on ensuring that all the operations support its vision and mission. They will ensure that supply chain activities are friendly to the environment to appeal to sustainable customers in the market. In addition, they will reduce the rising cost of production of iPhones and other products to remain competitive. Therefore, this paper provides a supply chain management plan for the management of Apple company.
Overview of Management Plan for Apple Company
Apple company has gained widespread success due to its ability to develop and execute its strategies effectively. The management will ensure that its products include iPhone meets the needs of users in the market. For example, prior to the design and development of the product, there will be active user engagement to incorporate their needs. The leaders will improve their interaction with customers and suppliers through its website to develop a positive relationship. It operates in the information technology sector, competing with giants such as IBM, Google, Microsoft, Amazon, and Samsung. The purpose of the management plan is to have an efficient supply chain. However, the company has recently had a problem due to the shortage of global chips.
Demographic of Apple Customer
In the US, Apple consumers come from different ages, gender, and race. In 2019, about 51% of Apple users were female, while 43% were men (US Bureau of Labor Statistics, 2019). Women are the largest users of Apple products such as the iPhone because they want a popular brand. Elderly men 65 and above spend more money on Apple products than other demographics. Most iPad users are adults 65 and older and those in the 35–44 age group (US Bureau of Labor Statistics, 2019). Older customers are purchasing Apple goods as gifts. Therefore, Apple products are used by people with different demographics.
Design of the Supply Chain
Apple’s supply chain is expected to enhance quality, speed of operations, reliability and focus on reducing cost. This is because the supply chain has an impact on the success and failure of the organization (Jacobs & Chase, 2021). The company will be able to achieve its anticipated goals if the supply is effective. Among the other attributes of the design, quality is the most appropriate because it aligns with Apple’s vision and mission statement of making the best products and providing the best user experience to its customers. As a result, the management will ensure that the supply chain is effective to achieve its objectives.
Material Resource Planning
Table 1: Apple’s key suppliers
|Apple’s key suppliers||Website||Link plan to the company’s vision and mission|
| ||www.3m.com||3M supplies Apple with important assessor parts such as smartphone filters and protectors used in the production of the iPhone (Parr, 2018). Based on this, the company will be required to provide products that meet Apple suppliers’ needs.|
| ||www.aactechnologies.com||AAC is the main supply of acoustic and haptic components for Apple used in the production of the iPhone (Part, 2019). It is expected to ensure that the materials supplied are of good quality.|
| ||www.agc.com||AGC supplies Apple with glass used to manufacture iPhones (Ibarra-Zarate & Padilla-Ortiz, 2020). It will be expected to provide the business with resources to guarantee the products are of high quality.|
| ||www.aosmd.com||The company supplies Apple with products such as power IC, which is used in the production of the iPhone (Wang & Lin, 2021). It will be expected to offer the company quality materials to ensure the products are of good quality.|
Supplier Relationship Management Plan
Supplier relationship management is a technique for assessing the value of suppliers to Apple Company. For successful operations in the supply chain, there will be a need for a positive relationship with suppliers (Tseng et al., 2020). Firstly, the management will have to identify which suppliers influence the success and check that they are operating effectively. The managers will ensure that suppliers are paid on time, and their rights are considered. They will organize regular meetings with relevant suppliers to ensure that they are involved in making decisions about the supply chain. Therefore, a good relationship with suppliers will improve supply chain operations.
Table 2: iPhone Production Aspects
| ||The production cost of the iPhone 14 Pro Max is about $501.|
| ||By assembling different parts.|
Table 3: Packaging Elements
| ||Wood fibre or paper pulp|
| ||To get rid of plastic wrap that pollutes the environment. The company will ensure that its packing is zero emission to the environment.|
| ||The packaging is artistic and visually appealing to customers. In addition, since customers want to engage with companies that are sustainable, the packaging is friendly to the environment.|
Table 4: Transport Components
| ||Through a cargo plane|
| ||The cost of shipping a 40-foot boxload of iPhones from Asia to the US is about $10,000 (Kay, 2021).|
| ||It is reliable, safe, and cost-effective compared to other means of transportation.|
| ||Yes, it ensures that the products reach the customers on time.|
Customer Relationship Management Plan
Customers are among the most important stakeholders to an organization because they determine the success or failure of an organization. For a successful operation in the market, an organization should strive to develop a good relationship with its customers (Tseng et al., 2020). Apple company has a strong customer relationship management strategy. It uses CRM software to maintain consistent communication with its customers. However, the management will integrate customers into the supply chain by making sure they are updated on the progress of the product throughout the process. As a result, having an effective customer relationship management plan like constant engagement of customers is integral for the company’s success.
Sustainability and CSR Plan
For a contemporary business such as Apple to thrive, it must be sustainable and adopt CSR practices. The management of the company will ensure that all operations in the supply chain are sustainable (Tseng et al., 2020). For example, they will ensure that all the materials used and operations conducted are friendly to the environment. For CSR, the management will ensure that the rights of all stakeholders and partners, such as suppliers in the supply chain, are met.
Cost of Goods Sold
The cost of goods sold has an impact on the price of Apple products. If the cost of producing an iPhone is high, the price will be high. Based on this, Apple’s management will ensure that all aspects that drive the cost of production are eliminated. For example, it will be important if the management to identify an alternative logistic to shipping to lower the cost of transportation. In addition, the managers will ensure that suppliers who are engaged can offer materials at affordable price without tampering with the quality.
The supply chain management plan will address the challenges and enhance the operations of Apple. The most successful businesses have a good plan for managing their supply chains. Businesses have had to prepare for unexpected supply chain problems because the market and customer needs are always changing. Because of this, the people in charge of Apple want to ensure that all of their operations support their vision and mission.
Hua, H. (2019). Mobile marketing management: Case Studies from Successful Practice. Productivity Press.
Ibarra-Zarate, D., & Padilla-Ortiz, A. L. (2020). Acoustic characterization of a room: study case between simulation and a portable method. Archives of Acoustics, 45(1).
Jacobs, F. R., & Chase, R. B. (2021). Operations and supply chain management. McGraw-Hill Education.
Kay. G. (2021). Tim Cook says Apple is ‘paying more for freight’ than he’d like, as experts predict shipping costs for businesses have yet to hit their peak. Business Insider Africa. Web.
Parr, R. L. (2018). Intellectual property: valuation, exploitation, and infringement damages. John Wiley & Sons.
Part, V. I. (2019). Ubiquitous Web Accessibility. Web Accessibility, 676.
Tseng, M. L., Chen, C. C., Wu, K. J., & Tan, R. (2020). Eco-efficient sustainable service supply chain management hierarchical model based on qualitative information and quantitative data. Management of Environmental Quality: An International Journal, 31(4), 961-984.
US Bureau of Labor Statistics. (2019). Overview of BLS Demographic Data. Web.
Wang, C. H., & Lin, H. C. (2021). Competitive substitution and technological diffusion for semiconductor foundry firms. Advanced Engineering Informatics, 48, 101254.