Apple's Supply Chain Is What Brings You Their Top Selling Products On Time

Up to one million new iPads may be delivered tomorrow, when the third generation tablet makes its debut in 12 countries. How does Apple guarantee all those deliveries actually take place? Through a fantastic supply chain, according to ZDNet Mobile. The Apple supply chain is considered one of the best in the world, which should come to no surprise. After all, each year the company refreshes two of the most popular product lines in history; the iPhone and iPad. To get this done, Apple counts on 156 suppliers worldwide. From these, employees are asked to work as many as 60 hours per week, with one day off every seven days.  In 93 facilities worldwide, more than 50 percent of the employees did work those 60 hours at least one week in 12. In fiscal year 2012, Apple expects to spend $7.1 billion on “product tooling and manufacturing process equipment, and corporate facilities and infrastructure, including information systems hardware, software and enhancements.” Prepayments through December 31 were $2.9 billion. Finally, in 2011 Apple had 23.1 million metric tons of greenhouse gas emissions. These included 61 percent from manufacturing, 5 percent transportation, 30 percent product use, 2 percent recycling; and 2 percent facilities. Other findings include:

• 1 million+: Number of units Apple is expected to sell when the new iPad launches March 16.
• 12: Countries that will sell the new iPad on March 16.
• $13.4 billion: Outstanding off-balance sheet outsourced manufacturing and component purchase commitments as of Dec. 31.
• 97 percent: Portion those 156 suppliers represent in terms of Apple’s procurement expenses.
• 229: Number of Apple supply chain audits performed in 2011. Of that sum, 188 were standard, 27 were process safety assessments and 14 were specialized environmental audits.
• 150 days: Time the typical purchase commitments cover the company’s supply needs.
• 39 percent: Portion of net sales in 2011 that came from customers in the U.S.
• 1 region: Asia is where the final assembly of all the company’s hardware products.
• Two vendors: Two suppliers account for a significant portion of Apple’s non-trade receivables.
• 2012-2022: Time frame where Apple’s component agreements expire.

For more information on what makes Apple’s supply chain so amazing, be sure to check out ZDNet’s full report or see SEC filings, Apple supplier responsibility and environmental reports. Pretty interesting numbers, don't you think?

Related articles