Got Inventory?

In class we talked about how important inventory management was for a business and even one small mistake could harm you. Well I read a article called “Apple’s secret sauce for success is inventory management” by Victor H. In this article he talks about how Apple is the master of inventory management at the time and that is why they are the leading company right now. He mentions that the person who made this possible is not Steve Jobs but Tim Cook (Current CEO). Before Steve Jobs hired Tim Cook at Apple were doing poorly in regards on inventory management. He also says that one of the most important factors in running a successful business is inventory management. In the article it also states that Tim Cook says that each week the inventory is kept it loses 1% to 2% to its value. And the article also mentions that to keep up with the demand for a product if the sales go through the roof Apple goes on a hiring spree.

Above is the Inventory Turnover rate along with how many days it takes apple to run out of all it inventory. Inventory turnover shows how many times inventory of a company could be sold and replaced over a specific period and the higher the number the better. From the chart above we can clearly see how Apple is ahead of its competitors in inventory turnover along with how many days it takes apple to sell out of its inventory. Before reading this I thought it was Steve Jobs who orchestrated everything at Apple and people were just there to back him up if something goes wrong. But I was wrong all the fame and success belong to Tim Cook as well as Steve Jobs because without one another they couldn’t have taken Apple to the heights that its at right now.

So do you think Apple could’ve been where it’s at now without great inventory management?

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