[PDF] [PDF] Apple –The Global Supply Chain - Jack M Wilson

2012 ff -Jack M Wilson Distinguished Professor 7 Business Models - 1 Apple – The Global Supply Chain Dr Jack M Wilson Distinguished Professor of Higher  



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© 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 1

Apple The Global Supply Chain

Dr. Jack M. Wilson

Distinguished Professor of Higher Education, Emerging Technologies, and Innovation © 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 2

Value Chain

A string of activities that add (quantified) value as the product moves to market.

Primary Activities

Inbound logistics (from supplier to firm)->

Operations (creating/manufacturing the product)->

Outbound Logistics moving the product to the market->

Marketing and Sales->

Service

Then there are support activities

Firm Infrastructure

HR

Tech. Development

Resource procurement/purchasing

© 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 3

Apple iPhone Value Chain

Apple took a look at their entire value chain and decided which of these to do themselves and which they would contract to others. Simon Reading, Bernt Wahl,Hannes Hesse, Chris Volz, Johnson Nguyen © 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 4 iPad and iPhone How does that value chain translate into the share of the value? Kenneth L. Kraemer, Greg Linden, and Jason Dedrick1 University of California, Irvine, University of California, Berkeley and Syracuse

University

© 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 5

Same authors of NSF study -iPad

© 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 6

Supply chain

© 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 7

Apple Global Suppliers

Text © 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 8

Cost Comparison for iPhone 6

© 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 9

US Suppliers

© 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 10

Could the US do it?

Time to hire 8,700 engineers

and to manage 200,000 factory workers?

US - 9 months

China - 15 Days

© 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 11

Apple Supply Chain

supply-chain-leader/#.VWtqSqTJBhE one in California and one in Texas. Apple also owns a Mac assembly plant in Cork, Ireland

There are risks:

Global economy could affect the Company.

Some re-sellers may also distribute products from competing manufacturers. Inventories can become obsolete or exceed anticipated demand. Some components are currently obtained from single or limited sources. Some custom components are not common to the rest of the industries. Ability to obtain components in sufficient quantities is important. Supply chain disruption such as natural and man-made disasters can be serious. Company depends on logistical services provided by outsourcing partners. Company also relies on its partners to adhere to supplier code of conduct. © 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 12

Apple supply chain

Apple's wild success with unibody construction for all models of the MacBook appears to be having a negative effect on the competition in more than just reduced sales -- the other vendors can't get their hands on the CNC (computer numerical control) lathes that are required to make ultra thin magnesium-aluminum shells to encase the electronics of Intel's UltraBook design guideline. According to Taiwan-based electronics industry site Digitimes, Catcher Technology and Foxconn Technology both have more than

10,000 of the expensive CNC lathes used to make notebook

chassis. These two companies are major suppliers to Apple, which means that companies wishing to make metal UltraBooks have to compete for capacity on those lathes. That's a hindrance to high- capacity production, so many manufacturers are choosing a different material. hinders-competition/ © 2012 ff -Jack M. Wilson Distinguished Professor 7. Business Models - 13

Global Opportunities

But for Global Entrepreneurs there are great opportunities here too. Many entrepreneurs find a profitable niche in the supply chains of large companies.

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