Making works with different vendors for the same component.

Making appropriate plan adjustment in dynamic enviromentsIn a dynamic society, making smart appropriate plans a key factor to help Apple stay firmly at top of the list of the world’s most valuable brands (Forbes, 2017). The revolutionary products and its attractive design such as iPhone, iPad or Mac products make a lot of people become Apple’s fans could not be very successful if it does not meet requirements of customer’s quantity, quality and time. However, with accurate and intelligent plans, Tim Cook build a supply chain to the closed ecosystem which was ranked at the top 25 global supply chain management companies from 2010 to 2014 by Gartner. Firstly, by applying outsourcing plan effectively, he has helped Apple focus solely on its core competencies of research and innovation in order to continually launch new products that convince consumers. Apple retains all of the creative innovation in the United States and outsources the rest that is a reason why the words “designed by Apple in California” appear on the back of phones. From 1998, he closed factories and instead set up the relationship with suppliers (San Oliver from Apple Insider). Moreover, according to the Australian Institute of Company Directors (2015), Apple also works with different vendors for the same component. The advantage of this approach is the minimization of impact when incidents occur with a particular supplier. According to San Oliver from Apple Insider, Tim Cook has cut the number of component manufacturers from 100 to 24, and thanks to the power of bargaining, he can make suppliers compete against each other to win contracts, resulting in Apple could buy high-quality component at the cheaper price. Secondly, he proposed plans to enhance management of inventory. After joining Apple in August 1998, Tim Cook recognizes inventory is one of culprit which decrease the value of products up to 2% per week in normal times, even more in special times (Adam, 2008). Therefore, he shut down 10 of Apple’s 19 warehouses to limit inventories, with lead to inventory dropped from one month to 6 days by September 1998 and continuously to 5 days in 2012 (San Oliver from Apple Insider, years). Cutting down the number of primary suppliers, central warehouse, SKUs (Stock-Keeping Unit), and synchronization of data across the system has made forecasting demand more accurate. Last but not least, Tim Cook make changes to helps more mid-range people have opportunities to join Apple’s ecosystem. Tim Cook removed a policy which eliminates all of the old product’s generation when new ones are released so that customers could buy old generation product with the cheaper price. For example, when iPhone X was sold, there is 5 type of Apple’s phone product still be manufactured and sold. At a talk with Fortune Magazine, Tim Cook said that “We obviously wouldn’t have over a billion products that are in our active installed base if we were making them for the rich because that’s a sizeable number no matter who’s looking at the numbers”. It is evident that when Apple is able to serve not only the rich like before but only the middle class, the revenue of Apple will increase. With all turns in supply chain and expanding market Tim Cook did, he deserves to be called as an innovator by Tony Fadell – iPod hardware chief (Philip, 2013)