Supply Chain Management In 6 Minutes | What Is Supply Chain Management? | Simplilearn

Summary

In this video, Alex's quest for an iPhone 13 Pro leads him to explore supply chain management. Rachel from Apple Inc explains the five stages of supply chain: planning, sourcing, making, delivery, and returns. The recent global chip shortage has disrupted Apple's supply chain, affecting production and delivery of iPhones.

Takeaways

• 📱 Alex, a tech enthusiast, decided to buy an iPhone 13 Pro after a virtual launch event but missed the pre-booking deadline.
• 🔄 He faced delays in acquiring the phone due to supply chain inefficiencies, which piqued his interest in understanding the term 'supply chain'.
• 🤔 Alex's curiosity led him to discuss supply chain management with his friend Rachel, who works at Apple Inc.
• 🌐 Rachel explained that Apple's supply chain involves a global network of raw material suppliers, manufacturers, and third-party logistics vendors.
• 🛠️ The assembly of iPhones primarily takes place at the Shinsen plant in China, highlighting the international nature of Apple's supply chain.
• 📈 Apple has a five-stage supply chain strategy: planning, sourcing, making, delivery, and returns, which helps in managing the production and distribution effectively.
• 💡 The planning stage is crucial for Apple, emphasizing the importance of a clear operational strategy and security through app scrutiny.
• 🛒 Sourcing involves acquiring components from various suppliers like Samsung for screens and TSMC for processing chips.
• 🏭 The making stage is where the actual assembly of Apple products occurs, mainly at the offshore factory in China.
• 🚚 Delivery is the stage where products reach consumers, either through online orders shipped directly or via distribution centers for retail.
• 🔄 Returns handle the process for faulty or damaged products, ensuring they are sent back for refurbishment.
• 🌐 The recent global chip shortage has significantly impacted Apple's supply chain, leading to production halts and delays.
• 💼 Supply chain management is vital for reducing operational costs, improving brand recognition, and enhancing customer service.
• 💰 The demand for supply chain management professionals is high, with competitive salaries reflecting the importance of their role in a company's success.

Q & A

What was the main reason Alex decided to buy an iPhone 13 Pro?

Alex was impressed by the capabilities of the iPhone 13 series showcased at the virtual Apple launch event.

Why was Alex unable to pre-book the iPhone 13 Pro?

He missed the pre-booking deadline.

What did the store representative at the offline Apple store inform Alex about?

There was an ongoing delay in the production of the iPhone 13 Pro due to supply chain inefficiency.

What is the term that intrigued Alex about the production of Apple products?

The term that intrigued Alex was 'supply chain'.

What does Rachel, who works at Apple Inc, explain to Alex about supply chain management?

Rachel explains that supply chain management involves consistent communication between entities such as raw material suppliers, manufacturers, and third-party logistics vendors in the process from product manufacturing to delivery.

How does Apple Inc implement its supply chain management strategy?

Apple Inc implements its supply chain management strategy by following five stages: planning an operational strategy, sourcing, making, delivery, and returns.

What is the first stage of building a supply chain according to Rachel?

The first stage of building a supply chain is planning an operational strategy.

What are the key components involved in Apple's supply chain?

Key components include raw material suppliers, manufacturers, offshore assembly factories, storage warehouses, distribution centers, and third-party logistics vendors.

What is the impact of the worldwide chip shortage on Apple's supply chain?

The worldwide chip shortage has adversely affected Apple's supply chain, leading to halted production of 10 million iPhone 13 devices.

What is the role of third-party logistics vendors in Apple's supply chain?

Third-party logistics vendors are responsible for shipping products ordered online to consumers and distributing items to retail stores for offline sales.

What does the term 'disposal' refer to in the context of supply chain management?

In the context of supply chain management, 'disposal' is not mentioned in the script and does not fall under the stages of supply chain management as per Rachel's explanation.

What is the average salary for supply chain managers according to PayScale?

According to PayScale, the average salary for supply chain managers is eighty-four thousand dollars per annum.

How does a well-managed supply chain benefit a company?

A well-managed supply chain can lower operational expenses, improve corporate brand recognition, and enhance customer service, ultimately allowing a firm to gain more profit.