Process view - Apples supply chain
Though there are different types of process views for supply chain such as Cycle view, Design view and Push Pull view. Apple uses Push pull view for their supply chain process. Push Pull view can be defined as two different categories in supply chain. Pull process totally rely on customer’s demand. Whereas, Push process is entirely based on perditions made by manufacturers about the products performance in the market.
Apple holds the number one supply chain management system is just purely due to the way they manage their inventory. As mentioned before, Apple use push pull strategy. Forecasting sales and not having excessive inventory is absolutely crucial for the electronic industry. Apple outperforms its …show more content…
Technology manufactures never keeps too many products dues to expecting sudden announcements from competitors or a new innovation can effect the business dramatically. According to records, Apples only had 154 main suppliers by 2013, this helped apple to maintain good relationship with them. They only kept one central warehouse and it all the data was in perfect sync with other store. Apart from forecasting demand of particular customers would buy, but Apple also tries to foresee what type of technologies will be in demand during upcoming years. This helps Apple to cut down cost with suppliers by ordering units for longer period of time. All these factors help Apple to predict the demand of products beforehand …show more content…
Another facilitating factor is having a longer product life cycle and Apple has more than 12 months for its key products.
And forecasting demand doesn’t come only in the form of what products your customers will buy, but also on what kind of technologies will be in demand for the next coming years, allowing the company to reduce costs with suppliers by placing orders for longer term. This also leads to creating enough demand for suppliers, so that other competitors cannot order the components and hence limiting imitations.
Although Apple was always pushing to have fast inventory turnover, it made a change in 2011 of not rushing selling. The change was implemented with the launch of the ipad 2 and consisted of selling the much-awaited products the second day after they were delivered to shops, despite the customer ques in front. This measure was taken to make sure inventory tracking runs smooth and there are no errors to lead to inventory inaccuracies.
If you are manufacturing or distributing electronics, you might have something to learn from the above. We are also curious to hear your stories too! Contact clara [at] tradegecko.com if you want your story to be covered
Though there are different types of process views for supply chain such as Cycle view, Design view and Push Pull view. Apple uses Push pull view for their supply chain process. Push Pull view can be defined as two different categories in supply chain. Pull process totally rely on customer’s demand. Whereas, Push process is entirely based on perditions made by manufacturers about the products performance in the market.
Apple holds the number one supply chain management system is just purely due to the way they manage their inventory. As mentioned before, Apple use push pull strategy. Forecasting sales and not having excessive inventory is absolutely crucial for the electronic industry. Apple outperforms its …show more content…
Technology manufactures never keeps too many products dues to expecting sudden announcements from competitors or a new innovation can effect the business dramatically. According to records, Apples only had 154 main suppliers by 2013, this helped apple to maintain good relationship with them. They only kept one central warehouse and it all the data was in perfect sync with other store. Apart from forecasting demand of particular customers would buy, but Apple also tries to foresee what type of technologies will be in demand during upcoming years. This helps Apple to cut down cost with suppliers by ordering units for longer period of time. All these factors help Apple to predict the demand of products beforehand …show more content…
Another facilitating factor is having a longer product life cycle and Apple has more than 12 months for its key products.
And forecasting demand doesn’t come only in the form of what products your customers will buy, but also on what kind of technologies will be in demand for the next coming years, allowing the company to reduce costs with suppliers by placing orders for longer term. This also leads to creating enough demand for suppliers, so that other competitors cannot order the components and hence limiting imitations.
Although Apple was always pushing to have fast inventory turnover, it made a change in 2011 of not rushing selling. The change was implemented with the launch of the ipad 2 and consisted of selling the much-awaited products the second day after they were delivered to shops, despite the customer ques in front. This measure was taken to make sure inventory tracking runs smooth and there are no errors to lead to inventory inaccuracies.
If you are manufacturing or distributing electronics, you might have something to learn from the above. We are also curious to hear your stories too! Contact clara [at] tradegecko.com if you want your story to be covered