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How Good Is Apple's Supply Chain?

iPhone 15 has been launched, and the annual "Apple fever" is surging. Its products still scream people, but what you don't know is the fact that Apple never manufactures its products, but outsources them all.

 

Forget about outsourcing, the key is that an iPhone has about 1,500 parts. From procurement, production to assembly, it requires the most complex cooperation of more than 200 top suppliers in the world. The span of the supply chain companies is so large that collaboration is very difficult. But Apple has created multiple series of top-notch products with high delivery standards, and has also increased the industry's yield rate by several degrees.

 

Not only that, those who become Apple's suppliers, such as Luxshare Precision, Desai Battery, etc., can also see their stock prices skyrocket because of their status as a member of the "Apple supply chain".

Gartner, a world-famous consulting organization, has launched a list of companies with the best global supply chain management for 14 consecutive years. Apple has been at the top of the list for 10 years. For the sake of fairness, Gartner has directly included companies with great supply chains such as Apple and Amazon not involved in rankings, its supply chain and operational capabilities are brilliant.

Apple CEO Tim Cook is a master in the supply chain field and is known for his domineering supply chain integration. He advocates "not putting eggs in one basket" . Apple implements a centralized procurement strategy, purchasing raw materials from global suppliers, and even convincing suppliers to build factories near Apple's assembly plant, thereby shortening the process and reducing costs; at the same time, it has established cooperative relationships with many excellent suppliers around the world to reduce supply chain risks; in addition, Apple has always maintained close collaboration with suppliers to jointly develop new products, make good products and ensure huge profits while reducing costs and increasing efficiency. As the "chain owner" of the entire supply chain, Apple has always dominated the value distribution and operation coordination of the entire supply chain.

 

In short, Apple's supply chain management strategy can be summarized as follows:

1.Supply chain visualization: By implementing a supply chain visualization system, Apple can understand the production, inventory and logistics status of suppliers in real time, and make timely adjustments to ensure timely delivery of products.

2.Supplier evaluation and management: Conduct strict evaluation and management of suppliers to ensure that they comply with environmental protection, labor and safety regulations. At the same time, we will enhance the capabilities of our partners by setting up supplier development projects.

3.Green supply chain: By implementing green supply chain policies, we encourage suppliers to adopt environmentally friendly materials and production processes to reduce carbon emissions and resource waste. Actively participate in electronic waste recycling projects to reduce the burden on the environment.

4.Warehousing and logistics optimization: Apple improves logistics efficiency and reduces transportation costs by optimizing warehousing layout and transportation methods. Currently, intelligent management of warehousing and logistics is implemented to improve the overall efficiency of the supply chain.

 

If product is strategy, supply chain means efficiency. Today, Apple relies on the advantages of its supply chain system to stay ahead of its competitors. According to industry insiders, it takes no more than 72 hours for an iPhone to go from the Foxconn assembly line to the San Francisco sales outlet. This is the magic of the supply chain. Apple's stable and efficient supply chain system foundation has laid a strategic foundation for its excellent products and is the essence of sustainable development.

 

About Oriwhiz

Oriwhiz is a mobile phone LCD/OLED screen and other phone spare parts' manufacturer(factory) which is located in Shenzhen China.We are cell phone display wholesaler(Chinese supplier), offer OEM and ODM service to customers all over the world. Our products have ISO9001,CE,FCC,ROSH certificate. All of our products are manufactured by brand new materials and 100% quality test before shipping. We promise our best quality products will be delivered to our clients on time. We have professional customer service and welcome inquiry any time. Our main products include: iPhone LCD,iPhone Charging Port,iPhone Front Camera,iPhone Back Camera,iPhone ear speaker,iPhone Battery.etc.Not only iPhone related products,we also have mobile phone parts for Samsung,Huawei,Xiaomi Oppo,Vivo etc.

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