Marketing Writing Assignment: Supply Chain Management (Editing Sample)

Executive summary
This report aims to deliver an analysis of how Apple’s logistics and supply chain is conceived, supported, developed and delivered. It takes peer reviewed journals; articles and reputable websites in consideration when exploring frameworks and models associated to logistics and supply chain management of Apple Inc.
First part of the report contains the introduction it includes the brief definition of the supply chain management such as what are the processes included in the supply chain management and what are important of the proper supply chain management. Also the introduction parts includes brief introduction about the company (Apple).
Second part of the report includes the natures of logistics, supply chain management and international trade of the Apple. This part briefly discuss how the Apple operating in proper supplier relationship management, what are strategic benefits of their international trade and other factors of the supply chain to reach their goals and get the competitive advantage.
Next part of the discussion will briefly discuss about the Apples outsourcing and procurement strategies. What are benefits behind the outsourcing strategies, how they properly control their production processes in other countries etc. In the procurement part, why Apple has changed their suppliers what are benefits behind those strategies will be discussed briefly.
The eventual part discuss about the inventory, warehousing and capacity management of the Apple. This part briefly discuss about the above mention factors of the Apple and how those factors positively influence the performance of the Apple. The conclusion part will briefly describe what we can gain this report and brief finding of the report specially the drawbacks of the supply chain management of the Apple.
Contents TOC \o "1-3" \h \z \u 1.Introduction PAGEREF _Toc466108965 \h 32.The natures of logistics, supply chain management and international trade of the Apple. PAGEREF _Toc466108966 \h 43.Apple’s Procurement and Outsourcing PAGEREF _Toc466108967 \h 83.1 Outsourcing PAGEREF _Toc466108968 \h 83.2 Procurement PAGEREF _Toc466108969 \h 94.Inventory, warehousing and capacity management of the Apple PAGEREF _Toc466108970 \h 114.1 Inventory PAGEREF _Toc466108971 \h 114.2 Warehouse PAGEREF _Toc466108972 \h 114.3 Capacity Management PAGEREF _Toc466108973 \h 115.Conclusion PAGEREF _Toc466108974 \h 126.Reference PAGEREF _Toc466108975 \h 14

Introduction
Supply chain Management has become one of the major areas for companies to gain competitive advantage (Lee, 2002). Due to the current business trend of extensive variety of products, globalization of business, continuous advance in technology, and short product life cycle, effective management supply chain effectively became a challenging and complex task.
Apple Inc; the American global technology corporation, which is headquartered in Cupertino, California is considered to be at the top of supply chain management. The company designs, develops, sells consumer electronics, online services and computer software. Apple is recognized for a range of products; among those are the iPhone smartphone, Ipad tablet computer, IPod portable player, Mac personal computer, Apple TV digital digital media player and the smart watch. Apple’s software includes the macOS and iOS operating system, safari web browser, iTunes media player ant the iLife and iWork creativity and productivity suites. Apple counts also with online services such as the Itunes Store Mac app store iCloud and iOS App Store. This strategy reduces the risk of depending on the on item. As dynamic environment the technology has been changing very quickly for an example if the Samsung innovate a phone with the same features of the I phone with the low cost the customers will be attracted by that particular product so the I phones demand will reduce in that time Apple can concentrate their other products and overcome the issues hence cover the income by the other products.
The natures of logistics, supply chain management and international trade of the Apple.
Apple Inc is well known for its mission of commitment and innovation. These two factors have a direct connection to the total supply chain operations in which the corporate strategy is combined with the logistic strategy, as it is committed towards consumers. The use of third party logistic is predominant in Apple Inc. that have devised for manufacturing, distribution and transportation.
Supply Chain Map
Source: /2013/01/is-apple-supply-chain-really-no-1-case.html
Globalization has intensified a new era of international competition. Therefore, global production, trade and thereby altering the organization of industries are being reshaped (Gereffi, 2011).
As mentioned above Apple is famous for its innovation and designing reputation, however there is more to add for Apple’s success that is now well known by everyone, for instance the achievement the company has reached through the supply chain management. The company is now considered to be at the top of supply chain excellence and it is becoming the global supply chain leader (Usanfranonline.com 2016). The research firm Gartner ranked Apples as the best Supply chain in the world from 2010 to 2013. In 2013 at least 97% of Apple’s procurement expenses for materials, manufacturing and assembly of products are completed worldwide. In 2012, Apple sold approximately 120 million iPhones, 60 million I Pads, 35 million iPods and 15 million Macs, which none of these iPhones were produced in the US, and approximately 85% were assembled in China (Gartner.com, 2016)
Apple Inc procurement of raw materials is from various part of the world sources. These materials are then shipped to an assembling plant in China. From there, the products are shipped directly to consumers who buy from the Apple's Online Store. For other distribution channels, for instance direct sales retail stores and other distributors, Apple Inc keeps its products at Elk Grove, California, which is the location of its central warehouse and call center where the supply products is made from. At the end of product's life, customer can send products back to the nearest Apple Stores or dedicated recycling facilities.
In an environment characterized by open in- novation, the locus of innovation is moving out of the labo- ratory of a single, self-contained firm and into a network of collaborating partners. Suppliers play an increasing role in such a network (Slowinski et al. 2009; Wagner 2009). In the automotive industry, for instance, most new patents are reg- istered by suppliers. If firms want to compete in the race for innovation in such industries, they will benefit from teaming when supplier innovation is managed successfully it can produce profitable growth in factors such as lower costs, speed, improved differentiation etc. Generally firms progressively rely on the collaboration of suppliers in their innovation processes. However, not all competent suppliers are willing to cooperate with all buyers, which is why achieving preferred customer status with key suppliers becomes important. (Schiele, 2012).
By 2013 the Apple only maintained the 154 suppliers (C.Lu.2014). Even though bargaining power of the suppliers will increase when the supplier number reduces, the Apple able to maintain the better supplier relationship because individually Apple can concentrate on the supplier needs. Better supplier relationship management enable the sustainable supply of the particular raw materials without switching to other competitors. Also normally Apple forecast the future trend of the technology and predict the raw material needs and order them prior because when the opportunity arise the supplier may increase the raw materials price also there will be shortage for that particular raw materials. Also early ordering of the raw material reduce the cost for the raw material this will reduce the cost of the product eventually that benefit can be given to the customers this will increase the customer demand.
New suppliers are more willing to invest capital to improve operation efficiency and high quality of product to obtain reliance from customers. Apple might gain advantages from the growth of new suppliers, which could provide ideas, reduce development costs and time, reduce COGS, and pave the way to a price premium.
Looking back to the early 90’s Apple moved its production facilities to Southeast Asia to be able to better deal with production uncertainty. If demand increased, production facilities could rapidly employ more workers at a lower cost compared to the U.S. Them Products can be shipped via sea shipment to warehouses in California. Nevertheless, Apple's PowerBook Laptop created an exceptional high and unexpected initial demand. While Apple's production facility was able to handle this demand, the production was severely affected by delays subsequently, order response time (Prater et al, 2001).
The finished products were shipped by see due to the volume involved. The times in transportation were affected by the weather in the Pacific, Consequently, lost sales curbed the profits and increased market share Apple otherwise would have realized. Based on simulations made by Levy, (1992) using Apple's data as a baseline, with volatile demand being the only transient variable and 100 iterations of each simulation, Apple could, on average, expect a 25% probability that discouraged demand would exceed 10.4% over a thirty-six month period. Furthermore, there was a 10% probability that unfulfilled demand would exceed 13.6% (Levy, 1992). Normally Apple maintains the strategy as what they produce in the abroad should sale in abroad. The Apple only does the main small processes in the USA ( T.Worstall, 2016) . For an example I- Phone assembled in China, components are made in Japan an...