Supply chain management topic apple supply chain

Products included: The company’s notable product lines include Apple Macintosh computers, iPod portable music players 2001, iTunes music programs, iPhone phones 2007, iPad tablets 2010 ,

Ministry of Transport University of Transport Ho Chi Minh City

Logistics IEC

UNIVERSITY

OF TRANSPORT HOCHIMINH CITY

SUPPLY CHAIN MANAGEMENT Topic: Apple supply chain Lecturer’s Name:

Group:

D Sustainability Supply Chain PracfiCG: SH nghe re ray 14

E Consumer behaviors to the domain supply chain: <e<< 17

I INTRODUCTION

a What is Apple?

Apple was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald

Wayne During its more than 40 years of operation, Apple has become one of the

largest and fastest growing technology companies in the world Apple products are

highly regarded for their design, features and performance, and have created a very

passionate and loyal community of users In addition, Apple is also famous for its

unique and creative advertising campaigns, such as "Think Different" and "Get a

Mac"

Apple is a multinational technology company headquartered in Cupertino,

California, USA This company specializes in manufacturing electronic products such

watchOS and more

b History of formation and development of Apple

Apple's history is always associated with the development that brings

quintessential breakthroughs in the creation of many new generation electronic

technology products

company in Cupertino, California Their first product was the Apple | computer

in the form of a circuit board The machine was launched at a computer club

in Palo Alto, California

success for the small company Apple This was the first personal computer,

with a plastic case and color graphics The product shows the Apple Steve

Jobs imprint

the next few years, Apple released new computers with more innovative user

interfaces, such as the early versions of the Macintosh However, high

product costs and limited application libraries caused many problems as well

as power struggles among executives

1983: Apple begins selling the Lisa, a business desktop computer with a

graphical user interface - a system familiar to most computer users today

However, this Lisa failed because the commercial price was high but the

software was limited

1984: Apple introduced the Macintosh personal computer with a luxurious

design and upgraded operating system, but the product still sold at a high

price

several of the company's employees with him

In 1990: The personal computer market developed and demand for products

expanded Macintosh laptops and PowerBooks were produced

In 1997, Amelio acquired NeXT with the purpose of luring Steve Jobs back to

Apple Steve then replaced Amelio as CEO after the company suffered a loss

of 1.8 billion Steve Jobs officially returned as CEO CEO of Apple An

impressive advertising campaign called "Think different’ was launched, along

with the launch of iMac and iPod products Quickly selling well in the United

States, Apple quickly sold their products well and sales increased rapidly

helping Apple recover after the crisis period since 1995

In 2001: the company opened a retail chain (Apple Stores) and has acquired

many other companies to expand its portfolio Becoming a successful modern

chain store An online store opened, allowing users to buy and download

music, audio books, movies and TV shows

This is not only Apple's proudest achievement, but also a memorable turning

point in the world's smartphone manufacturing history Apple opened a booth

App Store application to "upgrade" iTunes Success continued to come,

making Apple the most valuable brand in the world for many years

In 2010: Apple's iPad tablet computer was born and became the best-selling

tablet product to date Apple's iPad tablet computer was born and became the

best-selling tablet product to date

In 2018, Apple became the first publicly traded US company to be valued at

over $1,000 billion Two years later, the company was valued at more than

$2,000 billion Apple has high brand loyalty and is ranked as the world's most

valuable brand As of January 2021, there were 1.65 billion Apple products in use worldwide

estimated value of nearly 408 million USD Following in second and third place are Amazon and Microsoft, respectively Apple is now a name that is no longer unfamiliar to people around the world Apple products are widely used

by all ages, making customers trust them as much as they use iPhones including Macbooks, Airpods, Ipads and Apple watches

c Apple products

Products included: The company’s notable product lines include Apple Macintosh computers, iPod portable music players (2001), iTunes music programs, iPhone phones (2007), iPad tablets (2010 ), Macbook laptops, Mac personal computers, Apple Watch (2014-2015), Apple TV digital media players, AirPods wireless headphones, AirPods Max headphones, and HomePod smart speakers and many other types of products, Apple's hardware products are also commonly used and diverse

Source: Collected from Internet

d Apple’s business operations

With the development of science and technology, when technology products are popular and widely used, strategic goals are always something brands need to clearly define Goals in a company's business strategy Apple is always changed in certain periods to meet customer needs However, the company always focuses on issues related to revenue, profits as well as the value of the brand and the level of customer satisfaction

Apple regularly innovates to create innovative products and pays special attention to design Building the image of Apple as a high-end and modern brand,

satisfaction Create more reliable and consistent performance across products including hardware, software and services to optimize user experience In addition, Apple also expands and maintains the global market through its strategy of accessing countries, seeking new markets to create opportunities and developing products Building and maintaining strong relationships with customers customers through customer care and support services Feedback from customers is highly appreciated and used to improve products and services This has helped Apple update and adjust to reflect changes in the business and technology environment

Apple's process of importing raw materials to produce its products is a complex process and involves many different partners and suppliers globally Apple will contact raw material suppliers to place orders and negotiate prices and delivery times These suppliers can be electronic component manufacturing companies, display manufacturers, battery suppliers, case manufacturers, and many other

4

partners Once ordered, the materials will be shipped to Apple manufacturing plants globally These factories can be located in many different countries, including China, India, the US and many others At Manufacturing plants, raw materials will be tested and quality controlled before being used to produce finished Apple products The

consumers.Apple's raw material import process is a complex and strictly managed process to ensure product quality and meet market needs

Sources of raw materials for Apple include:

components and assembling Apple products

electronic components and assembling Apple products

The production and processing of Apple Logistics Company -2024

creating the latest Apple products like the IPAD, APPLE WATCH, AIRTAG, APPLE TV, accessories and offers, with various consumer and professional software applications such as iOS, macOS, iCloud, AppleCare and ApplePay

to enhance the user experience

using equipment, capital, and labor

into a worldwide supply chain with tremendous impact

tasks such as verifying payment, preparing the items for shipment, organizing delivery

3 Distribution and consumption activity Apple products are typically sold through their own retail stores, as well as through authorized resellers and online marketplaces such as Amazon Apple also has partnerships with mobile carriers to sell iPhones and other devices through their stores.(apple store) Apple currently has more than 520 stores in 26 countries, with about half of them located in the US Apple Distribution International (ADI) is a subsidiary of Apple founded in Cork, Ireland in 1980 ADI is responsible for managing the global distribution of Apple products, including products such as the iPhone, iPad, Mac, Apple Watch and accompanying accessories ADI also plays an important role in managing Apple's supply chain, from manufacturing to distributing products to end users In addition, ADI is also responsible for managing Apple's financial operations in Europe, including tax and financial management It creates a powerful distribution system This chain of stores is notoriously profitable, but the stores often focus on building Apple's brand rather than selling goods Apple products are distributed through various channels such as traditional trade, and modern trade These products are then transported to trading points by distribution partners who are responsible for ensuring that the products are delivered to the right locations and in good condition

Apple uses the ERP system (corporate resource planning) to streamline and manage different business processes effectively ERP in Apple Corporation exists

requirements of the functions performed by the organization This is especially important for Apple Inc because it cooperates with the budget and meets different terms before their time

The ERP system in Apple can support the management of functions such as

customer relationship management This integration helps Apple optimize its resource allocation, enhance decision -making processes and improve overall performance

The deployment of ERP at Apple will be involved in the integration of ERP software with infrastructure, databases and work processes of the company This integration allows seamless data streams and ensures that different parts in Apple can operate in an assimilation by using a centralized platform

It is important to note that the specific details of Apple's ERP system are exclusive and companies often adjust their ERP solutions to meet their unique business needs and processes

The ERP system at Apple Company includes a number of secondary systems including:

Financial and accounting systems handle financial and accounting processes

at Apple Company The Accounting Information system (AIS) is also included here

The production system handles all manufacturing processes at Apple, including the production of consumer electronics as well as personal computers All creative designs from AppleCompany are managed by the production system

Sales and service systems for handling orders and support for both local and international customers All processing related to marketing and advertising at Apple

is coordinated in this system The payment process here is good

ERP software collects information in real time on the operation and status of different parts of an organization and can access other parts to be used effectively (Investopedia, 2015B) The most popular ERP software on the market today is: Microsoft Dynamics, Sage, Odoo, SAP and OracleNetsuite As part of Tim Cook's plan, to increase iPad sales, especially for companies, he saw the importance of having a business force What is the world's largest technology company to do this? Apple decided to create a strategic cooperation agreement with SAP in 2016 SAP is

a software planning software that combines the main business functions of an organization SAP will develop a series of custom business applications for iOS, iPad, and iPhone devices while Apple has access to the sales force worldwide of SAP to help sell its devices for the devices for the sights Enterprise (Bort, 2016) This type of agreement is nothing new to technology companies Apple has

cooperated with other companies, such as IBM and Cisco, in the past to allow their devices to work better on corporate networks

Tim Cook, Apple Inc’s CEO during 2011-2021, tells Forbes that he finds

deteriorating products like smartphones, ipad or laptop Because product value depreciates 1-2% every week when storing the products Tim said “Inventory is like dairy products,” and also said “No one wants to buy spoiled milk.”

Improved and updated inventory management technology has allowed Apple Inc to manage its inventory with a clear view of costs and profitability (Bach, 2009) Thanks to JIT and SAP ERP, Apple revived the supply chain after an inventory crisis which cost 500 million USD

By having enough market information on consumption levels and consumers’ needs, Apple Inc can manage the right product, at the right time and in the right place by categorizing as 4 inventory types: raw materials, work-in-progress (WIP), merchandise and supplies, and finished goods

- Raw materials: means component products which include cobalt, lithium, and other rare earth

overhead and even packing materials such as the screen, case.,

to release to market and are intended to be resold to customers such as the new iPhone 16, and new iPad 2024

sale by retailers or wholesalers

This helps Apple ensure the continuous supply of raw materials and minimize the impact of incidents such as supply shortages or changes in raw material prices Additionally, to ensure that Apple always has the right number of products to meet customer demand Stockpiling also helps Apple minimize the impact of incidents such as stock shortages or price changes