Essay Sample on Apple: The Innovative Company Shaping the World

Introduction

Apple Inc is a well-known multinational company not only in the United States but across the world. Its principal founders are Ronald Wayne, Steve Jobs, as well as, Steve Wozniak. Under the reign of Steve Jobs, the company became the most innovative firms in the world and gained a high customer base. Principally, the company develops, designs and sells electronic gadgets such as iPads, iPods and Apple Phones. Further, they make computers such as MacBook, as well as, computer software. The company also provides its customers with online services such as Mac App Store, iTunes Store, as well as, iCloud operating systems for storage and security. Principally, Apple's ability to conducts its supply chain efficiently forms the primary reason for being the leading and competitive firm in the technological industry.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

The raw materials used to produce Apple products are sourced from countries across the world including the United States, Taiwan, Malaysia, South Korea, Europe, and Japan. The company has managed to keep hold of their suppliers by using permanent prepayments to reserve strategic manufacturing inputs that suppliers provide to design the company's products (Satariano, & Burrows, 2011). Afterward, the raw materials are transported to China for assembling. Principally, a single factory unit in China assembles over 500,000 iPhones per day (Satariano, & Burrows, 2011). Once the products are assembled and tested, they are shipped to central warehouses where they are distributed across the globe through air and water transport to Apple retail stores across the world. Apart from selling their products, the Apple Inc retail stores help in recycling the old Apple products and provide their customers with a chance to give back their old iPhones and add some money to get a new upgraded iPhone.

Studies have indicated that Foxconn, one of the suppliers of Apple Inc has shown great success in recent months (Hintsa, 2010). According to these reports, the company has managed to trade at its highest point in more than two months (Hintsa, 2010). This indicates that the success of Apple Inc. has boosted the net income of their suppliers. Foxconn has been the largest supplier to Apple Inc at 38.3%, and surprisingly Foxconn plays a crucial role in supplying the majority of the tech companies (Satariano, & Burrows, 2011). They are the key suppliers to HTC, Motorola, Nokia, Cisco and IBM who depend on them for raw materials. Samsung, Glu mobile, Jabil Circuit, Micron technology, and Murata manufacturing company are some of Apple's Inc. supply companies. Supply chain management as stated by Williams, Lueg, and LeMay (2008) refers to the intra- and inter-organization synchronization of manufacturing, sourcing, transporting, inventory management, as well as, storage roles to deliver the required services at cost

Great success usually comes with great scrutiny and Apple Inc is no stranger to this statement. It is the most scrutinized company for its manufacturing process in the world. After joining the Fair Labour Act, Apple Inc released an unprecedented report with details of both the good and bad working conditions experienced by the assembling employees in China (Satariano & Burrows, 2011). The company is becoming more transparent about their supply chain by releasing such reports showcasing their honest work. According to Satariano and Burrows (2011), the working environment of the employees in China has tremendously improved over the past decade. China mandates a 15 to 20% increase in minimum wage every year and housing to the many employees around the factory (Satariano & Burrows, 2011). Although many companies have similar suppliers, Apple Inc provides better margins to their supplier compared to other companies. This, in turn, improves the working conditions since Apple Inc can pay the price of high-quality products.

Supply chains security has become an increasingly complex area. For instance, Apple products are designed in California, built in Asia and sold in Europe. The company has incorporated different parties from all over the world to create a supply chain that ensures that it runs its operations smoothly. Apple Inc. faces a lot of supply chain security challenges since their products are continuously shipped from one place to the other (Lockamy, 2017). To ensure safe arrival of the various raw materials, the company provides that it gets the most secure and improved ways of transporting its raw materials and finished products across the world (Lockamy, 2017). Along the sea, the company faces the risk of losing their shipments to pirates. As such, the company will have to look for secure routes or be escorted by police boats to their destination. Bandits have been robbing cargo delivery trains exploiting the slow speeds of steam trains. Countermeasure, particularly stringent standards have been enacted to eradicate the cases of impending dangers and crimes that the company may experience (Lockamy, 2017).

Conclusion

In conclusion, Apple's success comes from proper management and handling of various issues relating to its supply chain. The firm keeps its suppliers happy by providing them with better margin rates, which the company to gain a competitive edge over its competitors. Similarly, the firm creates the right working conditions for its employees in its assembling factories. Reportedly, the growing complexity of Apple's supply chain has brought along insecurities such as theft during transportation. Apple's products are shipped from different parts of the world to China where they are assembled. This creates a complex network of communication to ensure the proper running of the company. Apple's supply Chain will continue to emerge top above the other companies since Apple Inc is relentlessly improving every department of their production.

References

Hintsa, J. (2010). A comprehensive framework for analysis and design of supply chain security standards. Journal of Transportation Security, 3(2), 105-125. Retrieved from: https://www.researchgate.net/publication/225637885_A_comprehensive_framework_for_analysis_and_design_of_supply_chain_security_standards

Lockamy III, A. (2017). An examination of external risk factors in Apple Inc.'s supply chain. In Supply Chain Forum: An International Journal (Vol. 18, No. 3, pp. 177-188). Taylor & Francis.

Satariano, A., & Burrows, P. (2011). Apple's supply-chain secret? Hoard lasers. Technology, 4(50). Retrieved from: www3.cis.gsu.edu/dtruex/courses/MIT8699/Articles-cases/Apple's%20Supply-Chain%20Secret-BusinessWeek-Nov13-2011.pdf

Sheu, C., Lee, L., & Niehoff, B. (2006). A voluntary logistics security program and international supply chain partnership. Supply chain management: An international journal, 11(4), 363-374. Retrieved from: https://www.emeraldinsight.com/doi/abs/10.1108/13598540610671815

Williams, Z., Lueg, J. E., & LeMay, S. A. (2008). Supply chain security: an overview and research agenda. The International Journal of Logistics Management, 19(2), 254-281. Retrieved from: https://www.researchgate.net/publication/235264001_Supply_Chain_Security_An_Overview_and_Research_Agenda