Post on Wednesday, March 28th, 2018 in Accounting
Over more than 40 years, Apple Inc. has evolved from a small, garage-based computer manufacturing firm into a technology giant and trendsetter.
All of this happened thanks to people who stood behind the brand. Specifically, Tim Cook has made Apple a global leader in supply chain management. In this article, we will focus on the logic behind Apple’s supply chain management as well as explain how it works and what makes it so efficient.
In 1997, Steve Jobs returned to the position of an Apple CEO in order to bring the company from bankruptcy back to profitability. A year later, Cook, a supply chain expert, joined Jobs to help reinvent, speed up and simplify the Apple supply chain. It was the best decision for the company at the time, because now the Apple supply chain is considered to be one of the most powerful, efficient models ones in the world.
Actually, between 2010 and 2013, the supply chain of Apple was repeatedly named the best in the world, according to the Gartner research company. During this period, Apple’s revenue had grown from 21.7% to a stunning 51.5%. Besides, by 2011 it took Apple only 3 days to complete the entire inventory management cycle and sell its inventory.
So let’s see which strategies Tim Cook – who is now the CEO of Apple – was using to achieve such tremendous results.
Apple is famous for its simple and accurate supply chain planning processes. Here is what they consist of:
Such simplified supply chain management has brought Apple much success. One of company’s secrets is that it treats its hardware products – MacBooks, iPads and iPhones – as perishable inventory with expiration date. For example, the inventory for certain food products need to be refreshed as quickly as possible, and this is also true for Apple products. Have you ever heard of, seen, or stood in queues in Apple stores every year when a new iPhone was released?
If yes, then you can see that the company is really capable of achieving such fast inventory turnovers. They combine innovation and sleek design with revolutionary supply chain strategies that can serve as a role model for a range of technology companies.
We hope that now you are inspired by the supply chain of Apple and maybe someday your business will become the next Apple.
Adam is the Assistant Director of Operations at Dynamic Inventory. He has experience working with retailers in various industries including sporting goods, automotive parts, outdoor equipment, and more. His background is in e-commerce internet marketing and he has helped design the requirements for many features in Dynamic Inventory based on his expertise managing and marketing products online.
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Tuesday, December 11th, 2018