Supply Chain Process for Apple & Zara
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Figure [ 1 ].1
The push and pull concept is more centralised to marketing aspects. Pull marketing for example is when customers are waiting for a product to launch and purchase it, little effort will be required from the company itself. This is exactly what is happening with Apple’s iphone sales. Customers of iphone will be lined up outside their local retail outlets waiting to purchase the latest iphone. Apple over here is making use of ‘Pull’ strategy (figure 1.1) whereby there is substantial demand out there, Apple will therefore supply their products through various distribution channels to meet the requirements.
The supply chain strategy of Apple iphone consists of a strong network of wholesale distributors as well as fast introduction and application of services. Through the vast distributers and dealers such as Singtel, Starhub, M1, epicentre and so on, Apple is able to reach out and shorten the distances between them and their customers. All these distributors will have to demand from customers, products will be pushed from the manufacturer Foxconn to supply the quantity of iphone’s required.
Apple iphone cycle view (Figure 1.2):
1. Customers place orders and purchase iphones through authorised dealers/retailers.
2. Dealers/retailers such as Singtel, epicentre etc runs low in stock and require replenishment from distributors.
3. Various distribution centers runs low in inventories, this triggers manufacturer (Foxconn) for more iphones to be manufactured and shipped.
4. Manufacturer Foxconn starts production schedule planning, procurement of raw materials are done prior to manufacturing activities.
To competitive strategy consists of all functions that exist in Apple’s iphone value chain. Below shows an example of how an iphone’s value chain will look like.
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