MBA Program : Spring -22

Course Title: Supply Chain Management

Course Code: MBA- SCM- 659.1

Group Assessment  

Continuous Assessment (CA) -02:

Submitted by:

GROUP B

Students Name & ID:

Anika Siddiqua Pranti (203001406)

Nusrat Chowdhury Tonny (211006506)
Mumtahina Rahman (221003206)
Sayed Masnoon Midhat (221000906)
Mohammad Jaynal Abedin (213002306)
Md. Hasan Al Banna (213003706)
Tamal Das (221003306)

Date of Submission: 17/02/2022

Submitted to:

Syed M. Tugril Esteyak

Adjunct Faculty, School of Business Administration

East Delta University

&

Group Assistant General Manager (Supply Chain)

Clifton Group

Bangladesh
Q 1
 Understanding definition of Supply Chain
Answer: (Answered by NUSRAT CHOWDHURY TONNY)

Definition of supply chain

A supply chain is a network that connects any business with its suppliers to order to
manufacture and deliver a specific product to the end-user, which is usually the
customer.
This organization has a different combination of activities, people, elements, data, and
assets. Organizations develop supply chains to lower costs and remain competitive in the
marketplace as supply chain management is the key to optimized costs and a faster
production cycle.

 Concept and Understanding the Global Supply Chain

Management practice by this
Answer: (Answered by ANIKA SIDDIQUA)

Supply Chain Map of Apple Inc. –  Sourced from supplychain247.com

Apple has been at the forefront of its industry for years, thanks to its sleek, modern
aesthetics and cutting-edge products. While many people are familiar with the computer
giant's products and branding, few are aware of the inner workings of its supply chain.
Apple is widely recognized as a supply chain innovator who inspires other firms and
forces the competition to catch up or fall behind.
We'll look at a few key aspects of Apple's supply chain in the sections below.
Strong supplier Relationships
Apple can give tremendous flexibility in reaction to demand surges by keeping good ties
with its supply chain partners. This, combined with Apple's massive production capacity,
enables them to provide products when and where needed.
Apple maintains high criteria for its multiple suppliers, named to Apple's Supplier List
each year. The top 200 suppliers on this list account for 98 per cent of the company's
purchasing. Demanding high-quality service from these partners ensures that the end
products are durable and reliable.
Because Apple is constantly innovating, its suppliers have a sense of security: even if
one of Apple's products fails or has difficulties, suppliers can be confident that another
request for a different product will be coming down the pipeline.
Apple provides educational and upskilling opportunities to guarantee that these suppliers
have the skills and knowledge they need to flourish in an ever-changing market. Since
2008, over 3.6 million supplier employees have taken part.
Although the effectiveness and efficiency of outsourcing have come into sharper focus in
recent years, Apple is proof that it can be a sound strategy — the company outsources
much of its manufacturing to China, which has provided them with the revenue they've
needed to launch new and updated products at a rapid pace over the years.
Inventory Management with a Strategic Approach
Apple's CEO, Tim Cook, is noted for his attention to inventory and the supply chain as a
whole.
It's no surprise, considering the importance of maintaining a lean, streamlined inventory
management system in the IT industry, where new products can virtually eliminate
consumer interest in previous ones.
Cook once observed, "Inventory is wicked in the tech industry." "Manage it like though
you were in the dairy business." You've got a problem if it's past its freshness date."
Apple retains as little inventory as possible to provide them with the flexibility they
require if a competitor releases an innovative new product, lowering the value of any
things in stock at the time. Additionally, having fewer SKUs to track allows for more
precise forecasting.
Cook's inventory-tracking systems have also given the company a competitive
advantage, decreasing the number of suppliers and warehouses and assisting partners in
holding them accountable for their quotes.
The emphasis is on sustainability:
Apple has implemented several initiatives to increase supply chain sustainability
throughout the years.
Apple, for example, said three years ago that it wanted to create a closed-loop supply
chain, meaning that all of its goods will someday build all of its goods entirely of
recyclable or renewable materials.
All of the company's global factories are now fueled by renewable energy, and newer
products, such as the MacBook Air, are constructed entirely of recycled aluminum.
The corporation has also made significant investments in various clean energy
technologies, including solar and wind. Suppliers from all over the world can use the
online Clean Energy Portal to find renewable energy sources. The amount of clean
energy generated by Apple and its suppliers in 2018 was roughly equivalent to the
amount of electricity required to power more than 600,000 homes in the United States.
These efforts improve the environment and give customers the assurance that they're
supporting ethical enterprises, which is becoming increasingly essential to today's
consumers.

 Drafting impact of Apple’s on the global supply chain

Answer: (Answered by ANIKA SIDDIQUA)

Apple is seen as having a competitive advantage over its competitors, and this is due to
its dominance of the advanced consumer supply chain, not just because of its marketing
and excellent design. The iPhone is designed at Apple's Cupertino, California
headquarters, dubbed "Apple Park." They used to have their unit on Valley Green Drive
in California. CEOs were able to collaborate more directly with the design team due to
the change. 

The usage of several vendors for the same component is a significant aspect of Apple's
worldwide supply chain. A huge number of third-party providers are involved in Apple's
supply chain. Apple has 785 suppliers in 31 countries across the world. China is home to
341 suppliers. According to Apple's 2015 supplier list, the top 200 suppliers account for
97 per cent of the company's supply chain (Apple.com, 2019). This means that 585
suppliers account for the remaining 3% of Apple's supply chain, giving the company
much latent capacity.  "Because of its volume – and occasional ruthlessness," said Mike
Fawkes, former supply-chain chief at Hewlett-Packard, "Apple obtains large discounts
on parts, production capacity, and air freight."  One of the significant benefits of having
many suppliers for the same component is that it allows Apple to avoid supply chain
delays and disruptions, keeping its gross margins. As various suppliers compete for
Apple's business, it can help reduce supply costs.

The supply chain's manufacturing stage takes place in a centralized location in

Zhengzhou, China. The supplies and components for the various vendors are flown to the
factory in China to save time and money. Foxconn, a multinational electronic
manufacturer, operates the factory. The Chinese manufacturing facility has 94
production lines. The iPhone is built in around 400 processes, including soldering,
drilling, and polishing. The plant can create 500,000 iPhones each day.

Products are directly dispatched to consumers via FedEx or UPS during the distribution
stage. They are also sent to Apple's centrally located warehouse facility in Elk Grove,
California, supply.

The final stage of Apple's worldwide supply chain, to become more eco friendly, is
return, which involves either dealing in an old iPhone or recycling an old product. If a
customer wishes to reclaim an old product, they can return it to an Apple store or send it
to a dedicated recycling facility. Although each country's return procedures varied
significantly, recycling takes occur inside the country of return.

 Analysis of Success factors of Apple’s Supply Chain

Answer: (Answered by NUSRAT CHOWDHURY TONNY)

Analysis of success factors of Apple’s supply chain

Apple is the hard work of Steve Jobs, Steve Wozniak, and Ronald Wayne, the company's
three founders. Ronald Wayne quit Apple precisely 12 days after its introduction,
blaming its lack of success. Steve Jobs, on the other hand, proved him inaccurate. He
became the biggest and most successful entrepreneur, propelling Apple to new heights of
triumph.
So, what factors for Apple's success? Let us have a check.
Vision
The cornerstone to any company's success is its vision, and Apple's focus is to provide
the best quality product to the customers. Apple produces some of the most innovative
products available in the market today. The basic concept is to design a thing that
contributes to who makes them. The engineers that develop Apple goods do so for their
enjoyment. When Jobs was alive, he was the most active "user" of Apple products.
Apple became more confident in its goods due to Steve's guidance, and this energy and
vibes are ultimately transferred to the consumers.
Easy to use
Apple's gadgets are so simple to use that even a 6-year-old child can use them, which
was a concern for Companies. He was determined to create items that were simple to
use. According to him, if something is difficult to use, it is worthless to the client, so this
prompted Apple to develop its hardware and software components for products such as
the iPad, iPhone, iMac, and MacBook Pro sustain total power over the gadgets.

Less issues
Apple guarantees control and security over their devices by producing hardware and
software. Before releasing the product, Apple tests its thousands and thousands of times.
Their goods are free of frequent app crashes, slow processing, virus threats, and etcetera.
Product Efficiency
"Our ambitions are pretty straightforward - to develop and make better goods," Apple
designer Jonathan I’ve recently stated. We will keep taking action until we can build
something great." Apple used that philosophy in their original iPods, iPhones, and, more
recently, the iPad and iMac. They improve upon existing technologies and ensure
product performance.
Years ahead of the competition
Apple, as we all know, works ahead of its competitors. They are now researching a
product that will be released in two years. Their rivals cannot match their advance
policy, which is a nightmare for them. Another reason is that they provide outstanding
customer and after-sales service, putting them ahead of its competition. You may see for
yourself by going to their stores. The best part is that if your iPhone, iPad, or other
gadget has a problem, they will replace it with a new device instead of repairing it.

Apple Supply Chain Strategy

 Concentrate on non-seasonal products with a life cycle of more than 12 months.

 Reduce the number of warehouses to only one main warehouse in California.
 Synchronization between the central warehouse and Apple's stores and customers
is efficient.
 Reduce the number of essential suppliers involved in the manufacturing,
delivering, and storing of goods.
 Maintain long-term and strategic supplier agreements.
 Outsource manufacturing to China, which cuts the manufacturing cycle time in
half, four to two months.
 Reduce the number of SKUs to estimate demand better and assure lightning-
quick Apple inventory turnover.
 Implement renewable energy sources, which account for up to 87 percent of
global energy use.
 Apple inventory management methods are outstanding, allowing the corporation
to save inventory costs, eliminate waste, and avoid overstocking.
How Apple supply chain works
 Development and research- The Company develops new technologies, designs
new products, licenses intellectual property, and acquires third-party firms.
 Concept evaluation- Market research, product testing, and quality assurance are
 part of this event.
 Pre-launch -The Company addresses any flaws discovered during the pre-launch
stage, supplies software for the new items, and makes prepayments to suppliers.
 Launch- Following the debut, the business forecasts demand for the following
150 days.
 Quarterly review - The Company checks inventory levels, analyze product life
cycles, changes demand estimates, and monitors the current level of sales and
cost trends during quarterly reviews.

 Data Gathering and Compiling Practices of Apple’s Supply

Chain

Answer: (Answered by TAMAL DAS)

Data Gathering and Compiling Practices of Apple's Supply Chain:

The company develops new technologies, designs new products, licenses the property
and purchases third-party businesses; for this, they need to maintain proper data
gathering and proper compiling process.
First, the company uses targeted advertisements. It collects information from what
customers search and buy to create ads for items they may have an interest in. Apple also
collects data to continue predicting things they like and what kinds of stuff they buy,
similar to other large tech companies.
Second, Apple acquires components and materials from their suppliers and then ships
them to the outsourced manufacturer in China. The products are manufactured at a
factory in China. The manufactured products are shipped from China to the consumers
who get them organized online (drop shipping) by using the services of third-party
shippers like FedEx or UPS. They'll even be shipped to the central warehouse location in
California. After Compiling, the products are assigned from the original warehouse
location to retail stores, wholesalers and network carriers. At the end of a product's life-
cycle, the customers can take part in the recycle/reuse program and send the products
back to the nearest Apple stores.
Apple may collect data about the customers from other individuals. If that individual has
sent a product or gift card, invited a customer to participate in an Apple service or forum,
or shared content with an individual. At the customer direction, may direct other
individuals or third parties to share data with Apple. Apple Collect the only minimum
amount of information required to deliver what they would like for a given service. By
ensuring that users know what data is shared and the way it's used, they'll exercise
control over it by processing data on the device wherever possible instead of sending it to
Apple servers to shield user privacy and minimize data collection. Hardware and
software are working together to stay data secure. Apple has constantly innovated to
sustain user privacy through its products and services. Apple products should meet core
standards like high security, compatible systems, and adequate working conditions.
Apple increased effectiveness and efficiency operational excellence also decrease
operating costs, communication and relationships in an exceeding network of companies.
Enhance relationships and prioritize action. Simplify product & the process also Adopt
the process view. Make fundamental changes and set the impossible target. Apple can
create people excited about their new launching product. Apple is one of the firms that's
efficient at using their assets in generating sales with the high assets turnover of their
pricing strategy and high ratio. Apple displayed an intelligent plan, whereas they
invested in digital asset management. Apple maintains loyal customers by concentrating
on customer service and improving the customer experience. Apple can do that by
investing in training its employees, building a more substantial data gathering and
compiling system for its users, and promoting more efficient policies for its customers.
They maintain a top quality of the product for data maintenance. This can be one of the
most reasons customers choose Apple's product. The brand has to maintain product
quality while expanding its supply chain by taking more control of quality management
and delivery time.
Apple's goal has always been to let users share data they want within a safe way that they
understand and control.

 SWOT Analysis of Apple’s

Answer: (Answered by HASAN AL BANNA)

SWOT ANALYSIS OF APPLE’S

SWOT (Strength, Weakness, Opportunities and Threats) Analysis, it is a system to

analyze a person or a company which helps to person or company develop a robust
strategy 
by making sure to consider whatever it faces in Reality.
Strength:
1. Brand Value: We all think that Apple is a complete quality product that can be used
for a long time and has a good look with an innovative logo. Of course, Apple created a
position about its brand on customers' minds.
2. Innovative Product: Apple is always designing their Hardware and Software device
for customer's which is always unique from other competitors.
3. Introducing New Service: In every year they launch a new device with predecessor
and improvise on the design, usability, and easiness of the product.
4. Different idiosyncrasy Systems: Apple has its Hardware and Software, part of
another competitor. 
5. Retail Store: Their Retail store is guaranteed to the customer to provide a high-quality
experience, and they are given direct interaction with trained staff. 
6. Consumer Focus: Always they are working on Consumer & consistently designs its
products with the user in mind while keeping the future in mind.
7. Excellent Hardware and Software Performance: Apple's been working on top-
notch technology and developing products with a focus on quality, and that's what boosts
their brand loyalty. Customers were delighted with the longevity of Apple hardware
performance.
8. Strong Research and Development: In the Strengths of Apple section, we have
found many strengths of Apple Inc. In this part, we can say that as the most valuable
company Apple has every criterion to be the best one.
Weakness:
1. Higher Price: We all know that the price of Apple's was always higher than other
recognized brands in the market.
2. Limitation: Though Apple has higher brand value, it is not flexible while we want to
connect it with devices from other brands. Apple iPhone does not allow us to get the
software installed from other sources other than its providers.
3. Decline in Market Share: Apple's market share is likewise dropping, with one of the
critical causes being its reliance on the iPhone and iPad series. It implies that a drop in
the popularity of these goods could affect Apple's company.
4. Rich Customer Target: Apple only target the Rich Customer, and When a company
target niche markets, their market becomes small. In this case, Apple's market is not big
like other smartphone or computer brands. 
5. Limited Distribution Network: Apple distributes its product by itself. And it kept its
distribution channel narrow. They do not use any third parties to sell their products most
of the time. Apple uses its website and Apple Stores to sell its products.
6. Tracking Allegation: It erodes user confidence to track them. Apps on Apple phones
were accused of revealing users' exact locations through tracking apps.
7. Unfair Business Practicing: Apple is under investigation for unfair commercial
practices after accepting money from Google to make its Safari browser use Google's
search engine as the default search engine.
1. Accessories incompatibility: When customers buy an Apple product, they enter
into the Apple Universe. Apple's products are notorious for being compatible
with Apple's accessories. Lack of ports, unique charger cables, and missing jack
ports – although these serve to be innovative designs, these also increase the cost
of add-ons.
Opportunity:
1. Loyal Customer: Apple is witnessing growing demand for its numerous devices
due to its large market share and brand recognition. People who use Apple
electronics show their loyalty to the brand by exhibiting interest in new devices.
2. Demand for Accessories and Gadgets: Apple can expand its product line by offering
technical accessories and devices. It has proven experience in launching new products
because of its strong innovation history. The company can increase its profits even more
if it follows this path.
3. Experienced Professional: Apple's product specialists, researchers, and developers
are highly qualified individuals with extensive consumer product branding experience.
Apple's team expansion enables them to create new opportunities consistently.
4. Increasing Technological dependency: People are becoming more dependent on
technology, and they have been dependent on smartphones. They became more
interested in portable devices. As a result, the demand for a smartphone may increase
more at an increasing rate.
5. Wide Spread Distribution Network: Apple distributes its products on its own most
of the time. It should establish additional third-party distribution channels to increase
sales in foreign countries. They will be able to generate more profit by expanding their
distribution network.
6. Globalization: Globalization of the market gives people the opportunity to have tech
products very quickly. As a result, people can buy and get those products within a short
period directly from respected companies. It also increases sales, which results in a more
profit margin.  
7. Product Diversification Strategy:  If it makes its product lines broader, it will offer
more products to its customers. Also, they should develop new products or cheaper
products for the middle-class people to grab the markets in developing countries.
8. Investment in R & D: Apple holds a considerable amount of retained earnings in its
account. They can switch funds to R&D; investment in the research and development
department will make the department stronger.

Threat:
1. Supply Chain Disruption: Several recent events have affected and disturbed the
organization's functioning. Supply chain uncertainty led it to announce flat sales for the
second quarter of 2020 and decline to provide annual revenue predictions for FY2020.
2. New Competitor: Apple still faces threats from competitors despite its prominence as
a brand. The advancements of technology have allowed Samsung, Google, and Dell to
challenge Apple.
3. Limitation: It was always a substantial threat for recognized brands in history. When
Apple introduces a new product, a replica of a substitute product is presented by other
companies. Sometimes, technology is stolen. There are also many counterfeit products
on the market.
4. Aggressive competition within Blue chip Companies: The increasing number of
Blue-Chip companies is making the industry more competitive. China is offering high-
quality products at a significantly lower price than Apple products.
5. Technological Changes: Consumer electronics are on the cutting edge of technology
almost every day. A significant challenge for the company will be keeping up with the
latest trends. 
6. Market Penetration: The smartphone market has undergone a significant shift in
brand penetration. Android software is now being used by companies like Samsung,
HTC, and Lenovo to produce new devices.
7. Backdoor protocol: Government agencies have consistently pressed Apple to unlock
the iPhone using a backdoor, which entails decrypting it and gaining its contents.
8. Law Suits: Apple is actively dealing with hundreds of lawsuits. Consumers mainly
open these in regards to their phones being slowed down and the CPU rates being
throttled.

 Key-Takeaways of Apple’s Supply Chain

Answer: (Answered by MUMTAHINA RAHMAN)

Key-Takeaways of Apple's Supply Chain 

All the brands or companies maintain many strategic plans to improve their business, and
the maintenance with consumers is also related to the supply chain. If the supply chain
goes wrong, they cannot improve their relationship with consumers and cannot profit
from their business. Apple is a very famous and renowned brand worldwide, which is
known for its design and the best security technology to the consumers. Apple buys
objects and equipment from various vendors and will then have them delivered to the
Chinese assembly factory. Components purchased via Apple's Store Website are
distributed straight to customers (via UPS/FedEx). Apple holds supplies in California
and sends them to various networks like sales shops and other wholesalers. Customers
can return devices to Apple Stores and specific recyclable materials when they reach the
end of their useful life. Tim Cook's mantra was from the very beginning to slash
inventory, cut down on warehouses and make suppliers compete between themselves.
Despite Apple's constant desire for a rate of stock transition, the company decided not to
expedite sales in 2011. With the release of the iPad 2, the modification was applied,
which consisted of releasing the much-anticipated devices the next day after being
provided to stores, notwithstanding long lines of customers towards the front. This
precaution was taken to ensure that stock management functions well and that no errors
occur, resulting in inventory discrepancies. 
There are many critical takeaways of Apple's supply chain management, which helps
establish this brand worldwide. 
● The Planning of Apple's Supply Chain: The achievement of Apple's supply chain
can be ascribed to several factors, but everything begins with making plans. To estimate
supply chain flow, metals makers should maintain a careful eye on forces of supply and
demand and raw - materials pricing and establish good predicting models. Consumers
and markets can always change a supply chain plan. However, if you don't have a
strategy in place, your organization could drown in the supply chain. So, there is always
a plan b for Apple to communicate with consumers properly even if they go down or lose
their products. 
● The Key of Communication: A sustainable connection between an organization and
its customers is built on communication. As we covered in a previous essay,
communication is a fluid process that should continue. Communication is essential to the
achievement, including any supply chain, but it is necessary for large manufacturing. To
find a lasting solution leading position, Apple has worked inside the company's
marketing structure. Market communication's primary goal, as in the previous, is to
communicate, convince, and notify clients of a specific item in the business. By telling
consumers about service and pushing individuals to test it, the method improves sales
and profits. So, Apple has already ensured the customer that they give the best security
technology, which has already been proven by year. These are the best critical takeaways
of Apple's supply chain, directly related to consumers. 
● Apple's supply chain strategy includes using numerous sources for the same
component: 
- Minimize supply chain interruptions and shortages, enabling the business to keep
operating profits. 
- Reduce the risk of third-party problems that come with capacity reliance by adjusting
purchasing proportions with current suppliers.
- To respond to consumer demands, significantly enhance the manufacturing base.
- As several suppliers contend for their company, reduced supply rates are encouraged.
- Large amounts of pre-orders are processed then analyzed to develop demand estimates.
All these key takeaways work as a supply chain management of Apple. Besides these
aspects, we can notice the production of Apple in the time of Covid-19. They did not
stop their presentation at that time as well. So, their management of supply perspective is
evident to the consumers, and they launch their new model every year. 

 Describe briefly What you Things and Topics leant from

Apple’s Supply Chain

 Conclusive Comments on Apple’s Supply Chain on Product

Innovation Technology
Happy Understanding

Thank You
===============