![]() ![]() Brring in extraordinary Apple inventory management practices, which allow the company to cut down on inventory costs, reduce waste and avoid overstocking.Implement renewable energy sources, making up to 87% of their energy used worldwide.Cut down the number of SKUs to predict the demand more accurately and ensure lightning-fast Apple inventory turnover. ![]() Outsource the manufacturing to China, thus reducing the manufacturing cycle time from 4 months to 2 months.Maintain long-term and strategic relationships with suppliers.Cut down the number of key suppliers that are involved in manufacturing, shipping and storage.Efficient synchronization of data between the central warehouse and Apple’s stores and customers.Cut down the number of storage locations, leaving only one central warehouse in California.Focus on non-seasonal products with life-cycles that exceed 12 months.So let’s see which strategies Tim Cook – who is now the CEO of Apple – was using to achieve such tremendous results. Besides, by 2011 it took Apple only 3 days to complete the entire inventory management cycle and sell its inventory. During this period, Apple’s revenue had grown from 21.7% to a stunning 51.5%. It was the best decision for the company at the time, because now the Apple supply chain is considered to be one of the most powerful, efficient models ones in the world.Īctually, between 20, the supply chain of Apple was repeatedly named the best in the world, according to the Gartner research company. ![]() A year later, Cook, a supply chain expert, joined Jobs to help reinvent, speed up and simplify the Apple supply chain. In 1997, Steve Jobs returned to the position of an Apple CEO in order to bring the company from bankruptcy back to profitability. In this article, we will focus on the logic behind Apple’s supply chain management as well as explain how it works and what makes it so efficient. Specifically, Tim Cook has made Apple a global leader in supply chain management. has evolved from a small, garage-based computer manufacturing firm into a technology giant and trendsetter.Īll of this happened thanks to people who stood behind the brand. ![]()
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