Successful Supply Chain Cost Reduction and Management Sep 27, Cost Saving 3 comments If you were to tell me that your company had never looked at its supply chain costs and sought to deliver reductions, I would be mightily surprised. Most companies start out with the best intentions to achieve successful and sustainable supply chain cost management, but somehow seem to lose momentum, only to see costs increase again in fairly short order. The following five mini case studies explore a few high-profile companies that have managed to sustain their supply chain cost reduction efforts and keep expenses under control. The challenges faced by these organisations and the steps they took, may provide some inspiration for successful long-term cost management within your own organisation.
This case study will show you the analysis of Apple Supply Chain core processes, challenging issues and complexities of its operations. To get a closer look at the modern day supply chain at Apple Inc, this case study utilizes a content analysis technique.
From the above graphic, Apple Inc accelerates the new product introduction by acquiring the licensing and 3rd party businesses. The whole process looks very similar to that of other industries.
The interesting point is that Apple Inc has to make the prepayments to some suppliers to secure the strategic raw materials. Supply Chain Map is the way to express a large system from the points of origin to points of consumption in a simple to understand manner. Information from the annual report is also used to produce the Apple Supply Chain Map.
Apple Inc purchases raw materials from various sources, then get them shipped to an assembling plant in China. One journalist indicated that the life of Apple Inc is fairly easy by utilizing its negotiation power. Believe me, Apple Supply Chain has very high risks. There are many challenges to overcome, for example, - Global economy could affect the Company.
The above information is also from the annual report. As you can see, most of the risks are on the supply side. Some people in the blogosphere said that Apple Supply Chain is not that complicated. So this section will explain some characteristics of Apple Supply Chain through various metrics and compare them with Amazon Supply Chain.
Supply chain professionals also use this metric in inventory management function. From the face value, Apple seems to be more efficient. Anyway, there is a reason for this. Apple Inc is now a marketing company with no manufacturing facility, but Amazon is a distributor of general merchandise.
Then the inventory turnover is much lower. Working closely with strategic suppliers will bring competitive advantage to the firm. Number of Key Vendors Amazon vs Apple Apple recently said that they have about key vendors across the globe.
This amount of suppliers is quite manageable.
According to this informationAmazon has about 3 million suppliers in total. Then, good management of related function is essential. Number of Warehouse Facilities Amazon vs Apple Apple Inc has the central warehouse in California, but Amazon has approximately 28 warehouses from coast-to-coast.
With the appropriate level of the automation, this kind of operations can be done efficiently. For Amazon, the thing is more complicated than that.Read this global supply chain management case study to see how a Fortune home improvement company revolutionized its logistics management.
Supply chain and logistics news. Case study: How Tesla changed the auto industry Supply chains are critical to an automaker's success, but the most critical part of the automaker's supply chain is its relationship with suppliers — and that might be where Tesla is weakest.
Supply Chain Improvements - Medical.
A case study that talks about reducing the cycle time in the supply chain by 50% for a medical equipments. Supply chain case studies analyze how companies seek to achieve cost reductions or profit improvements and make the supply chain more competitive as whole. These cases are intended to provide wide-ranging information, management education, background information and leadership on the most relevant topics in business.
There is a "CASE STUDY CONCEPT" for each case showing the supply chain principles and practices that are highlighted in each case. We recommend people new . Case Study: Supply Chain Case Study Words | 10 Pages. April 6th McGill School Of Continuing Education Sourcing CTPT Prof.
Daniel Mejean Word count: Dell Inc. Supply-Chain Case Study I unfortunately had to do the project alone as every team I asked to join where already full with 4 members.