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Apple supply chain secret

Logistic and supply chain management MBA 25th Sripathum University, Thailand

Impossible is nothing
When Apple designer want to shine light through aluminum case of Macbook

Impossible is nothing
Laser is needed to make a small hole on the metal

Impossible is nothing
Designer Manufacturing/ Material Expert Suppliers

Operation expertise
Operations expertise is as big an asset for Apple as product innovation or marketing,

Supply chain model

Supply chain as weapon


Use air transportation to satisfy customer needs and better in inventory control

Supply chain as weapon


Work closely with suppliers since design process until deliver to consumer

Supply chain as weapon


Cash is the best solution (80 Billion US$)
Materials/equipments are always ready as need Bottleneck elimination

Supply Chain as weapon


Good supply chain = low cost
Contractual pricing with supplier Low inventory cost

Supply chain as weapon


Strictly control/monitor in each processes
Manufacturing Delivery Store

Benefits from excellent supply chain


its gross margins were 40 % last quarter, compared with 10 - 20 % for most other hardware companies

Suggestion for improvement


Focus on Cooperate Social Responsibility in supply chain
Improve lifes quality of every workers in a whole supply chain

Suggestion for improvement

Suggestion for improvement


Improve good relationship with key suppliers

Suggestion for improvement


Expand manufacturing base into each region to reduce transportation cost

THANK YOU