Apple has taken steps to make its supply chain more environmentally friendly by working with supplier Lens Technology to power their operations entirely with renewable energy and divert waste from landfills. The COVID-19 pandemic disrupted Apple's supply chain as factories like Foxconn had to shut down, delaying some product shipments. To improve resilience, Apple should develop country-specific COVID precautions for suppliers and leverage suppliers from multiple regions to avoid disruptions from lockdowns. It has adapted its retail strategy in response to the pandemic by increasing appointments and safety measures to balance in-store and online services.
Apple has taken steps to make its supply chain more environmentally friendly by working with supplier Lens Technology to power their operations entirely with renewable energy and divert waste from landfills. The COVID-19 pandemic disrupted Apple's supply chain as factories like Foxconn had to shut down, delaying some product shipments. To improve resilience, Apple should develop country-specific COVID precautions for suppliers and leverage suppliers from multiple regions to avoid disruptions from lockdowns. It has adapted its retail strategy in response to the pandemic by increasing appointments and safety measures to balance in-store and online services.
Apple has taken steps to make its supply chain more environmentally friendly by working with supplier Lens Technology to power their operations entirely with renewable energy and divert waste from landfills. The COVID-19 pandemic disrupted Apple's supply chain as factories like Foxconn had to shut down, delaying some product shipments. To improve resilience, Apple should develop country-specific COVID precautions for suppliers and leverage suppliers from multiple regions to avoid disruptions from lockdowns. It has adapted its retail strategy in response to the pandemic by increasing appointments and safety measures to balance in-store and online services.
Apple has taken steps to make its supply chain more environmentally friendly by working with supplier Lens Technology to power their operations entirely with renewable energy and divert waste from landfills. The COVID-19 pandemic disrupted Apple's supply chain as factories like Foxconn had to shut down, delaying some product shipments. To improve resilience, Apple should develop country-specific COVID precautions for suppliers and leverage suppliers from multiple regions to avoid disruptions from lockdowns. It has adapted its retail strategy in response to the pandemic by increasing appointments and safety measures to balance in-store and online services.
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CASE STUDY 5: iPHONES SUPPLY CHAIN UNDER
THREAT BY: M NEHA REDDY MBA 1ST YEAR SECTION-B
1. Explain how Apple made its supply chain an environmentally friendly
supply chain?
Ans. Apple is aiming toward a greener supply chain in an era when
buyers want to know that their electronics makers are functioning in a way that does not affect the environment. Lens Technology, one of Apple's biggest suppliers, revealed that its new Apple operations are powered by renewable energy.
As a result, touchscreen producer Lens Technology becomes the first
Apple supplier to pledge to use 100 percent renewable energy in its operations. According to an Apple news release, all 14 of Lens Technology's final assembly plants in China have been certified as Zero Waste to Landfill. The UL standard verifies that a plant's production waste is reused, repurposed, composted, or turned into energy as necessary. The locations have diverted almost 140,000 metric tonnes of garbage from landfills since the initiative began in January 2015.
Apple has said that it intends to be carbon neutral by 2030. Apple's
worldwide corporate operations are already carbon neutral, so the news implies that the corporation would extend that aim to its manufacturing supply chain and product life cycle as well.
It's in Apple's best interests to enlist the aid of its partners in the battle against climate change. Severe weather brought on by global warming, for example, might "create a temporary interruption in manufacturing or the supply of components or completed goods, in the availability of a data centre, or in the availability or productivity of our personnel," according to Apple. Apple could not be able to delivery items on schedule if parts are delayed, which might impact the company's sales. 2. What strategies should Apple adopt to overcome the purchases challenges posed by Covid-19?
Ans. Since January, the COVID-19 corona virus epidemic has been expanding over the world, and it has had a significant influence on Apple's device manufacturing and sales in nations such as China, Italy, South Korea, the United States, and nearly every other country.
Many of Apple's Chinese suppliers, including Foxconn and Pegatron,
were obliged to halt operations for several weeks in early February because an epidemic of COVID-19 at a supplier campus where employees live in close quarters would be disastrous.
Some Apple goods, such as build-to-order variants of the iMac, iMac Pro, Mac Pro, and MacBook Pro, had significant shipping dates due to supplier difficulties, however Apple's suppliers are back up and running as of May.
For the time being, people may rely on recycled commodities because iPhone already incorporates recycled raw materials and recycled tin in its products.
Many of the raw materials used in iPhones originate from companies like SK Hynix in the US and Canada, Samsung in the US and Canada, and Micron in China.
As a result, it may receive supplies from a place that is not subject to a
lockout or other restrictions. Raw material suppliers who are unrestricted might be utilized.
3. Given the unexpected challenges such as Covid-19, what changes do
you recommend to Apple's supply chain to make it more resilient?
Ans. Apple's retail outlets primarily acted as points of sale, product
repair, and services prior to the corona virus. During the epidemic, though, Apple had to rethink its retail layout and shift some of those experiences online. Now that customers are returning to their usual purchasing patterns, Apple, like other retailers, is attempting to create a balance between its in-store and online offerings. Prior to the epidemic, Apple was known for its Genius bars, where consumers could have more informal conversations with store personnel about which new items to buy or how to solve issues. However, because there were no boundaries between personnel and consumers during the epidemic, that layout posed a dilemma. Apple responded to the store re- openings last summer by boosting store appointments and extending in- store and curbside pickup options.
As local regulations permit, in-store activities such as product tutorials
and training classes, which went virtual during the epidemic, are progressively restarting in additional markets. To coincide with the inauguration of the new store, the firm also unveiled its new Creative Studios programme, which will debut in Los Angeles and Beijing before extending to additional locations. Participants will learn how to use Apple tools to produce film, music, and photography in Creative Studios. Artists, nonprofit community partners, and Apple will mentor them as well.
The company should work with its global supply chain to develop a set of precautions specific to each country's needs, including as health screenings, density limitations, and strict adherence to social distance in their facilities.
