The Efficiency of Supply Chain Design by Apple

Apple Supply Chain Design The kind of supply chain that any company uses greatly determines the efficiency with which the company avails the products to the consumers, the price of the product and the profit margin of the organization. Most organizations have invested time and money to come up with the best possible supply chain design with the aim of having a seamless flow of their products from the manufacturing to the last consumer in all their target markets.

The supply chain design plays a significant role in brand petitioning since it determines the visibility of the particular brand. Apple has had one of the best supply chains in the market as compared to their competition. The supply chain is simple and yet effective with the materials and components sourced from various suppliers, collected and shipped via air to China where their assembly plants are located. The choice of air transport saves on both time and money.

Once the products have been assembled, the consumers are encouraged to make their order online and then their orders are shipped through the courier services like FedEx or UPS directly to them. They also have a central warehouse in California from where they ship products to consumers. Apple also has within its supply chain dedicated recycling facilities where the products can be returned at the end of the life of the products, though these can be collected at the Apple stores as well (Apple, (2015).

This system used by Apple is the best example of incorporation of the Just-in-Time process since the requisite material are flown to China in time, and the orders for the end product are made and confirmed even before the production is done hence there is no storage but rather direct shipping again by air once the products are ready. This is what Just-in-Time process entails, cutting down on the flow trim within production and the response time to the needs of the consumer.

The supply chain design also proves to be efficient in meeting demand since it has Apple dedicated stores at the tail end of the chain and also has dispatch warehouses and efficient air transport like UPS that handle large cargos. This ensures that the end products leave the manufacturing firm fast and efficient just as the material comes in for the manufacture of new products.

The inclusion of the online store where consumers make their orders, payment and interaction with the organization has made this supply chain one that is responsive to the current market trends where many consumers would rather sit behind a computer and make their orders to be delivered at the door step rather than drive to the next city to buy the product at the stores. The system also helps in risk hedging by exclusion of many suppliers along the way and letting the suppliers.