Procurement at Apple

In: Business and Management

Submitted By samdent1
Words 2544
Pages 11
Table of Content

Introduction………………………………………………………………………..……...3
The 3PL market…………………………………………………………………………...4
Procurement As competitive advantage…………………………………………………4
1. Center-led procurement…………………………………………………………..5
2. Strategic sourcing………………………………………………………………….5
3. Supplier integration……………………………………………………………….6
4. Enterprise spend management……………………………………………………6
5. Cross-industry benchmarking…………………………………………………….7
6. E – Procurement…………………………………………………………………...7
Advantages of Apple’s procurement……………………………………………………..8
Disadvantages of Apple’s Procurement…………………………………………………..9
Conclusion…………………………………………………………………………………10

Introduction:
When Apple design guru Jony Ive wanted a new feature for the next MacBook: a small dot of green light above the screen, shining through the computer’s aluminum casing to indicate when its camera was on, the problem? It’s physically impossible to shine light through metal.
Apple discovered it could use a customized laser to poke holes in the aluminum small enough to be nearly invisible to the human eye but big enough to let light through. Applying that solution at massive volume was a different matter. Apple needed lasers, and lots of them. Most of Apple’s customers have probably never given that green light a second thought, but its creation speaks to a massive competitive advantage for Apple: Operations. This is the world of manufacturing, procurement, and logistics in which the new chief executive officer, Tim Cook, excelled, earning him the trust of Steve Jobs.
What Apple learned is that for a very profitable business, you need to have 3 things perfected:
1. Low Overhead –outsource labor to a country with very cheap labor and favorable taxes
2. Low Cost of Goods Sold – Make friends with suppliers, get very cheap raw materials
3. Effective Supply Chain – Ensure that the customers get the…...

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