0:00:00.000,0:00:03.030
SPEAKER: Alex is a[br]major tech enthusiast.

0:00:03.030,0:00:06.500
Recently, he attended a[br]virtual Apple launch event,

0:00:06.500,0:00:08.180
where he witnessed[br]the capabilities

0:00:08.180,0:00:11.030
of all new iPhone 13 series.

0:00:11.030,0:00:15.180
Instantly, he made the decision[br]to get an iPhone 13 Pro.

0:00:15.180,0:00:17.810
However, he missed the[br]pre-booking deadline,

0:00:17.810,0:00:19.580
and he's been waiting[br]for this phone

0:00:19.580,0:00:22.670
to hit the e-commerce[br]sites ever since.

0:00:22.670,0:00:25.940
After waiting for a long time,[br]he visited the offline Apple

0:00:25.940,0:00:28.220
Store, where the store[br]representative informed him

0:00:28.220,0:00:32.060
about an ongoing delay in the[br]production of iPhone 13 Pro due

0:00:32.060,0:00:34.170
to the supply[br]chain inefficiency.

0:00:34.170,0:00:36.170
Alex then went to[br]a couple of more

0:00:36.170,0:00:40.010
trusted Apple reseller outlets[br]and received the same response.

0:00:40.010,0:00:43.100
He then became intrigued[br]about this term supply chain

0:00:43.100,0:00:46.040
and how it affects the[br]production of a big corporation

0:00:46.040,0:00:50.780
like Apple Inc. Therefore, he[br]began exploring this topic.

0:00:50.780,0:00:53.760
He spoke with his friend[br]Rachel, who works at Apple Inc

0:00:53.760,0:00:55.670
to learn about supply[br]chain management

0:00:55.670,0:00:58.730
and how the chain is disrupted[br]due to international chip

0:00:58.730,0:00:59.720
shortage.

0:00:59.720,0:01:02.240
Rachel explained to him[br]about supply chain management

0:01:02.240,0:01:04.129
using Apple Inc's example.

0:01:04.129,0:01:07.160
She said if you order an[br]iPhone from the Apple Store,

0:01:07.160,0:01:09.730
you'll notice that Apple[br]is not precisely delivering

0:01:09.730,0:01:11.150
the product on its own.

0:01:11.150,0:01:13.300
All the iPhones[br]available on Apple Store

0:01:13.300,0:01:15.880
are majorly manufactured[br]at the Shenzhen assembly

0:01:15.880,0:01:17.290
plant in China.

0:01:17.290,0:01:19.870
But before that, raw[br]material suppliers

0:01:19.870,0:01:21.640
from all around[br]the world deliver

0:01:21.640,0:01:25.630
goods needed to manufacture an[br]iPhone to this assembly site.

0:01:25.630,0:01:27.950
And once the product[br]is assembled,

0:01:27.950,0:01:29.830
it gets shipped to[br]the storage warehouse

0:01:29.830,0:01:32.320
and then to your doorstep[br]by third party vendors

0:01:32.320,0:01:34.510
like FedEx or UPS.

0:01:34.510,0:01:38.860
This means entities such as raw[br]material supplier, manufacturer,

0:01:38.860,0:01:41.320
and third party[br]logistics vendor are

0:01:41.320,0:01:43.630
in consistent communication[br]with each other

0:01:43.630,0:01:46.180
until the iPhone reaches you.

0:01:46.180,0:01:48.220
These entities and[br]their communication

0:01:48.220,0:01:49.960
involved in product[br]manufacturing

0:01:49.960,0:01:51.910
to product delivery[br]is collectively

0:01:51.910,0:01:53.860
considered as a supply chain.

0:01:53.860,0:01:56.560
After listening to[br]this, Alex asked Rachel

0:01:56.560,0:01:59.290
how Apple Inc has[br]implemented this supply chain

0:01:59.290,0:02:02.230
and how can one design[br]a sleek strategy

0:02:02.230,0:02:05.080
to manage a supply chain[br]that is not overly influenced

0:02:05.080,0:02:06.850
by external factors.

0:02:06.850,0:02:09.880
In response, Rachel[br]explained, well, there

0:02:09.880,0:02:12.700
are five stages for building[br]supply chain management,

0:02:12.700,0:02:15.750
and Apple has adopted these[br]stages while building the supply

0:02:15.750,0:02:17.550
chain management strategy.

0:02:17.550,0:02:19.740
The first stage of[br]building a supply chain

0:02:19.740,0:02:22.260
is planning an[br]operational strategy.

0:02:22.260,0:02:26.220
Apple, since its inception,[br]has had a clear goal.

0:02:26.220,0:02:29.980
To provide the best personal[br]computing devices to consumers.

0:02:29.980,0:02:33.000
The initiative of Apple to[br]scrutinize each app or program

0:02:33.000,0:02:35.190
before launching it[br]on the Apple App Store

0:02:35.190,0:02:37.780
makes all Apple[br]devices more secure.

0:02:37.780,0:02:39.960
These pre-planned[br]actions or strategies

0:02:39.960,0:02:43.830
had been the most vital[br]USPs of this organization.

0:02:43.830,0:02:45.970
The next stage is sourcing.

0:02:45.970,0:02:48.930
In this stage, Apple acquires[br]equipment and materials

0:02:48.930,0:02:50.940
from suppliers and[br]then ships them

0:02:50.940,0:02:53.170
to the offshore assembly[br]factory in China.

0:02:53.170,0:02:56.610
The 120 hertz screens are[br]exported from Samsung's Asan

0:02:56.610,0:02:57.310
plant.

0:02:57.310,0:03:00.150
Foxconn ships batteries,[br]and the processing chips

0:03:00.150,0:03:03.450
are manufactured and[br]exported by TSMC.

0:03:03.450,0:03:06.850
Then comes the third[br]stage, known as Making.

0:03:06.850,0:03:10.180
This is the stage where Apple[br]manufactures its products.

0:03:10.180,0:03:12.090
The outsourced[br]Chinese assembly plant

0:03:12.090,0:03:15.030
majorly assembles all Apple[br]products and ships them

0:03:15.030,0:03:17.370
to the warehouses or[br]distribution centers

0:03:17.370,0:03:19.590
spread across[br]multiple continents.

0:03:19.590,0:03:22.490
After that, the next stage[br]of supply chain management,

0:03:22.490,0:03:24.480
delivery, comes into play.

0:03:24.480,0:03:26.310
Here, the products[br]ordered online

0:03:26.310,0:03:28.190
get shipped to the[br]doorstep of consumers

0:03:28.190,0:03:31.280
from storage warehouses,[br]whereas the distribution

0:03:31.280,0:03:33.320
centers, on the other[br]hand, send items

0:03:33.320,0:03:35.550
to retail stores[br]for offline sales.

0:03:35.550,0:03:37.880
This whole shipping[br]process is carried out

0:03:37.880,0:03:41.330
by third party logistics[br]vendors, such as FedEx.

0:03:41.330,0:03:45.530
Supply chain management's last[br]building stage is returns.

0:03:45.530,0:03:48.260
Here, the faulty or damaged[br]products during delivery

0:03:48.260,0:03:50.360
get shipped back to[br]the storage warehouses

0:03:50.360,0:03:53.420
and then the assembly[br]plant for refurbishment.

0:03:53.420,0:03:57.140
Statistically speaking,[br]97% of Apple's supply chain

0:03:57.140,0:04:00.810
is all about outsourcing[br]agreements and collaborations,

0:04:00.810,0:04:03.620
which has helped Apple become[br]the best computing device

0:04:03.620,0:04:04.530
producer.

0:04:04.530,0:04:07.980
However, due to the recent[br]worldwide chip shortage,

0:04:07.980,0:04:10.830
Apple's supply chain has[br]been affected adversely.

0:04:10.830,0:04:14.040
The world was shut down because[br]of the COVID-19 pandemic,

0:04:14.040,0:04:16.589
and many factories[br]also went down with it,

0:04:16.589,0:04:18.680
leaving chip[br]manufacturing materials

0:04:18.680,0:04:20.570
unavailable for months.

0:04:20.570,0:04:22.610
Increased consumer[br]electronic demand

0:04:22.610,0:04:26.270
in recent times and scarcity[br]of semiconductor supplies

0:04:26.270,0:04:28.950
has put pressure on[br]Apple supply chain,

0:04:28.950,0:04:32.540
prompting the company to halt[br]production of 10 million iPhone

0:04:32.540,0:04:34.340
13 devices.

0:04:34.340,0:04:36.620
After listening to[br]Rachel, Alex learned

0:04:36.620,0:04:39.470
why there is a constant delay[br]in the delivery of iPhones

0:04:39.470,0:04:43.130
and became more patient about[br]his desire to buy an iPhone.

0:04:43.130,0:04:45.800
On that note, here's[br]a question for you.

0:04:45.800,0:04:47.960
From the given[br]options, which option

0:04:47.960,0:04:51.530
does not fall under the stages[br]of supply chain management?

0:04:51.530,0:04:54.290
A, planning[br]operational strategy.

0:04:54.290,0:04:56.480
B, sourcing.

0:04:56.480,0:04:58.610
C, making.

0:04:58.610,0:05:01.220
D, disposal.

0:05:01.220,0:05:03.080
Do give it a thought[br]and leave your answers

0:05:03.080,0:05:04.650
in the comment section below.

0:05:04.650,0:05:07.760
Three lucky winners will[br]receive Amazon gift vouchers.

0:05:07.760,0:05:10.170
With the help of an[br]Apple Inc case study,

0:05:10.170,0:05:12.500
we explored how a[br]supply chain management

0:05:12.500,0:05:14.480
strategy can be established.

0:05:14.480,0:05:16.340
This domain of[br]business management

0:05:16.340,0:05:19.440
is crucial for any product[br]or service-based company

0:05:19.440,0:05:20.480
in the long run.

0:05:20.480,0:05:24.090
A well-managed supply chain[br]can lower operational expenses,

0:05:24.090,0:05:26.580
allowing a firm to[br]gain more profit.

0:05:26.580,0:05:29.800
It can also improve corporate[br]brand recognition and customer

0:05:29.800,0:05:30.710
service.

0:05:30.710,0:05:34.250
Hence, companies invest a great[br]deal in their supply chain.

0:05:34.250,0:05:36.580
They constantly hire[br]professional supply chain

0:05:36.580,0:05:38.150
management experts.

0:05:38.150,0:05:41.240
These professionals are tasked[br]with managing logistics,

0:05:41.240,0:05:42.890
updating the[br]company's inventory,

0:05:42.890,0:05:45.760
and conducting a thorough[br]evaluation of the manufacturing

0:05:45.760,0:05:49.000
cycle to discover[br]and correct flaws.

0:05:49.000,0:05:51.550
That is the reason why[br]these SCM professionals

0:05:51.550,0:05:53.780
are compensated really well.

0:05:53.780,0:05:56.890
According to Payscale, the[br]average salary for supply chain

0:05:56.890,0:05:59.830
managers is $84,000 per annum.

0:05:59.830,0:06:02.620
Whereas in India, the[br]average annual salary

0:06:02.620,0:06:04.940
is around 8.5 lakhs per annum.

0:06:04.940,0:06:06.680
We hope you enjoyed this video.

0:06:06.680,0:06:09.920
If you did, a thumbs up[br]would be really appreciated.

0:06:09.920,0:06:12.250
Here's your reminder to[br]subscribe to our channel

0:06:12.250,0:06:15.130
and click on the bell icon for[br]more on the latest technologies

0:06:15.130,0:06:16.100
and trends.

0:06:16.100,0:06:21.360
Thank you for watching, and stay[br]tuned for more from Simplilearn.

0:06:21.360,0:06:35.000