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APPLE: A Tale of Three cities
The case will be used for understanding the following concept:
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The potential role which third party logistics providers can play in supply chains
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The analysis of costs and benefits at a company level and at a multi-company level in supply chain management.
The Case also provides background on two existing supplier hubs - one in Cork, Ireland and one in
Fountain Colorado. This allows us to contrast the effect of a hub in the US with that in Europe.
(Deferral of payment of duties, tax advantages related to avoidance of establishment of a sales/manufacturing entity)
The need to develop supply chain solutions which support business goals, and to implement performance measures which motivate the desired behavior. This case describes a situation faced by
Lori Amador, head of Apple 's Supplier Management Organization for its Personal Computer production facility in Sacramento, California. Faced with a growing space shortage,. Apple is considering various alternatives for implementing off-site storage of component parts. One particularly intriguing alternative is the use of a supplier hub process similar to that which Apple has implemented at its facility in Fountain, Colorado. As part of her review of the alternatives, Lori must analyze the supplier hub concept as implemented at Fountain and how it could potentially address Sacrainento 's needs.
------------------------------------------------------------------------------------------------------------------------------1. What strategy is Apple pursuing to remain competitive? What role does Apple 's materials management organization play in making Apple successful? What performance measures should Apple use with respect to materials management?
Apple focused on two strategies, R&D investment to generate a steady stream of new product introductions and cost reduction to maintain or improve margins while reducing prices.