Apple Inc.: Managing a global supply chain SummaryAnalyst Jessica Grant needs to make a presentation of pros and cons BXE Capital should make to their portfolio, based on the Apple supply chain, to the vice president of her company. She found that apple managed a global supply chain that operated on a real time-basis. A big factor oftheir success was due to the combination of design, functionality, marketing and the ability to quickly modify the production process based on consumer demand. Being the worlds largest company by market capitalization, “Apple was able to gain better control over its supply chain by working with new suppliers on proprietary parts for which Apple would provide upfront capital in return for volume commitments and a lower overall price per unit” (pg. 3). Instead of outsourcing manufacturing like typical retailers, Apple chooses to maintain full control of the supply chain internally. They work in very close proximity to the suppliers in order to make any necessary tweaks for the products that may change last minute. Gartner group voted Apple as thenumber one supply chain; their composite score was 3.64 points higher than their closest competitor, McDonald’s (Exhibit 9). The expert management of the supply chain is best displayed in an example of how the iPhone 5 was produced all the way inception to delivery to consumer. Going forward, the Apple financial information was inspected all the way from 1996
Barilla Spa - Executive Summary Essay
1133 WordsDec 7th, 20125 Pages
Barilla SpA, world’s largest manufacturer of pasta based in Italy is experiencing extreme demand variability resulting to operational inefficiency and increased cost. To combat the key issues stated my decision is to implement the Just In Time Distribution (JITD). This new system, contrary to current system Barilla has will eliminate Bullwhip effect and stock outs by having centralized information, there will be data transparency between Barilla and distributors. Distributors will provide actual sales data which will be the basis of forecasting and production thus increasing in efficiency in operation and alleviating stock out among distributors. JITD will lead to improved supplier-customer relationship which in the long…show more content…
They do not follow any forecasting model; they just do replenishment ordering without minimum/maximum quantity. Barilla has no visibility on actual data, their basis of production is per distributors’ information per week and this causes pressure on manufacturing & distribution team of Barilla.
• Too many SKUs & High level of inventory
Nature: Strategic Timing: Long term & Short term
On dry products alone, Barilla offers 800 SKU. Pasta is made in 200 different shapes and sizes and has more than 470 packaged SKUs. Typically distributors carry 150SKU out of 800 SKUs Barilla leaving high inventory on the CDC. There is high level of inventory across the chain; overall there is about 2 months of inventory on the entire supply chain at any given time.
• Frequent Trade Promotion leads to Bulk Ordering
Nature: Tactical Timing: Short term
Barilla has 10-12 canvass period which each corresponding to a promotional program. During the canvass distributor can buy as much as he wants in order to avail the promotion and this is welcomed by sales representatives because their incentive is dependent on achieving sales goal for that canvass period. Barilla also offers volume discount and transportation discount in full truck load order quantities. The