The critical analysis of the supply chain management of Apple iPhone has demonstrated that the organisation utilize exceptionally short lead-time to introduce new model for iPhone in the global market. The organisation annually introduce new product and bi-annually upgrade major functions. This short development cycle of product illustrates the proper execution of end-to-end supply chain management procedure (Waters and Rinsler, 2014). Apple Inc. generally develops their software and hardware internally which has assisted the organisation to introduce a highly systematic product design process. This process allows the organisation to introduce exceptional initial performance which is far above than the competitor brands (Apple Inc., 2015). Alternatively, the integration of software vendor, such as Goggle, has assisted Samsung to only indulge in hardware development process. Though this practice has allowed the organisation to shorten their product development process to semi-annual cycle, it has also introduced fragmentation and limitation within their initial performance (Apple Inc., 2015).
Apple Inc. considers the centralized supply chain coordination procedure which influences them to utilize centralized decision making procedure. The concept of centralized decision making process assists organisations to select a unique decision maker for the management and coordination of entire supply chain. The centralized coordinated supply chain model allows organisations to standardize their product quality and channel partner’s performance (Chopra and Meindl, 2007). According to the supply chain coordination theory of Chen and Chen (2005), decentralized supply chain coordination causes dilemma situation within organisations regarding the organisational performances and operations. The highly centralized supply chain coordination procedure allows Apple to efficiently ...Show more