Apple and supply chain capability

An article in CNN Money by David Goldman (http://money.cnn.com/2011/04/22/technology/apple_supply_chain/index.htm?hpt=T2) describes how Apple exercises its supply chain power. The author claims that since Apple has five main products (iPad, iPhone,iPod,Mac, AppleTv) and 15 variations total , and that these designs have a large number of common components, the sourcing issues can be focused on a few suppliers. In addition, given the company’s $ 60 billion cash reserves, the company can pay faster and thus get priority delivery. The article claims that such moves decrease availability and thus provide a competitive supply chain advantage in terms of Apple’s ability to deliver products faster and ramp up to meet demand.  Does Apple’s product strategy enable successful supply chain performance ? Is growth and a steady stream of successful new products a key piece of the supplier flexibility ? Are such competitive capabilities sustainable ?

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , . Bookmark the permalink.

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