Last week we talked about inventory management and supply chain management which play very important roles in business management. Under the influence of globalization, many large international companies are involved in the global supply chain management and inventory management. A classical example is Boeing’s supply chain. To produce one airplane need more than 20 international suppliers in 12 countries. Since each country has its own areas of expertise, these international suppliers use their best technology to produce the aircraft parts which reduce the cost and improve the quality. So I think Boeing is one of the perfect products of global supply chain management. However, each coin has two sides. Although global supply chain has many advantages, it still has some drawbacks such as high risk, transportation problem, and political issue. To be successful, global supply chain has to be able to deal with unexpected issues and find a good way to solve the problems. And it is also important for a company to choose an appropriate supplier and manage it.
There has an article from Wall Street Journal indicated that a phenomenon of the exploitation of workers exists in Apple’s factory in China. This report definitely has a negative influence on Apple Inc.’s reputation. Apple Inc. has released a list of its suppliers couple weeks ago. This list included 156 suppliers and a report about those suppliers’ working environment and welfare issues. According to the report, 62% of Apple’s suppliers allow their workers work more than 60 hours per week and five factories hire minor workers. Hon Hai precision Industry Co. located in Taiwan is one of the main suppliers of Apple. It was called “fear factory” since a series of staff suicide occurred in 2010. Last week, Apple Inc. released their annual financial report. Since the demand of iphone and ipad has dramatically increased during the vacation, apple earned a huge profit with 131 billion dollars. I think Apple, as a high profit and high influence international company should pay more attention on their suppliers instead of just pursuing high profit.
What do you think Apple can do to improve their supply management?