Академический Документы
Профессиональный Документы
Культура Документы
This type of purchase, nearly half a billion dollars, and for a supplier that is unique with an
emerging new technology, puts this category of sapphire squarely in the middle of the Translate
strategic category for the traditional Kraljic category portfolio matrix. Based on traditional
supply management pedagogy, strategic categories require a great deal of attention,
information sharing, and joint collaboration to ensure that the right mutually beneficial Recent Posts
outcomes occur.
Bad Data + Lack of Standards = Lousy
Supply Chain Analytics
The second part of this challenge is understanding what type of supplier Apple was dealing
Best Practice: Creating a Governance
with. According to the WSJ, GT was intrigued, because the agreement would provide more Mechanism for Analytical Learning in
consistent revenue than equipment orders. Moreover, GTs business making equipment for Organizations
solar cells had fallen on hard times. GTs 2013 revenue was down 66% from two years earlier. Red Flags that Every Supplier Business
In other words, GT was also a high risk supplier, in that they had indicators of having had Development Team Knows to Look For
previous financial problems and had made bad technology investments in the past.read on Why do high quality suppliers pass
over big RFQ/RFPs?
Mapped to a supplier preference matrix, this would indicate that GT was definitely viewing What Trumps Announcement of
Apple as a preferred customer, and would fall into the Develop category, or a supplier that is Withdrawal from the TPP Means for US
not doing a lot of business with Apple, but has the customer as a strong developmental Supply Chain Executives
prospect. But because they were high risk, a prudent supply manager would want to watch
them closely.
Categories
In terms of a procurement strategy, everything looked copacetic and had fallen into place. Aerospace Supply Chain
GTs stock price took off when Apple and GT signed an agreement to seal the deal. Apple Analytics
would lend GT $578 million toward building 2,036 furnaces and operating a factory in Mesa,
Big Data
Ariz. Apple would buy and retrofit the factory for an additional $500 million and lease it to GT
Biobased Products
for $100 a year.
Biopharmaceutical Supply Chain
Shortly after, in fact a few days later, the first sapphire boule came out of the furnaces, and it Book Reviews
was badly cracked, and deemed unusable. Soon, it became clear that the manufacturing
BRIC Supply Chain
problems were more than a single batch, and that there were major problems with the process
Business Process Outsourcing
itself.
BVL International
At this stage, there should have been daily onsite meetings, so that Apple and the supplier Category Management
could work on the technical issues together, and identify the source of the problems. Instead,
Change Management
GT continued to flounder, hiring over 700 people for jobs that didnt exist, as capacity was not
China Supply Chain
up and running yet. They struggled with quality, production planning, and failed to meet
deadlines. Rather than have regular communications, Apple failed to conduct due diligence Commodities forecasting
and project planning. GT, fearing that Apple would leave them stranded, continued to try to Contract Management
work through the problems on their own, and continued to experience difficulty.
Corporate Social Responsibility
This doesnt appear to be a one-time event either. Another blog on the WSJ Global Distribution
website interviewed Apple suppliers, and two key lessons came out of it: Global Supply Chain
Government Acquisition
To long-time suppliers, GT is a reminder of two lessons they learned long ago: Dont rely too
Healthcare Supply Management
heavily on Apple and dont make promises you cant keep. Follow these, they say, and you
probably wont end up like GT. Innovation in the Supply Chain
Internet of Things
Apple always asks the suppliers to expand their manufacturing facility to meet the rush
Inventory Management
demand for its new product, but we have to make our own judgment as the big orders only last
Labor and Human Rights in the Supply
for a few months, said a manager at an Apple supplier. For example, Apple might want us to
Chain
increase 100 production lines, but we would only add 50 to 60 gradually.
LIVING Supply Chain
The screen maker Wintek was another supplier that over-expanded on Apple hopes. Local Food Systems
The company expanded its facilities on the prospect of growth, but ended up losing new Logistics
orders when Apple shifted to new technology to make screens thinner, people familiar with the
Luxury Brands
matter said. The company has suffered major operating losses. The subsequent word is out in
MBA Supply Chain
the supplier community, that Apple is very demanding of their suppliers, but not always
committed. MBA Supply Chain Programs
Project Management
The approach to ruthlessly pursuing price reductions and using the marketing power is
certainly one that traditional procurement executives have used for years, but one which Real Estate
everyone in the industry is recognizing as obsolete. And the results are also predictable. On Retail Logistics
October 6, GT chief Mr. Gutierrez told Apple that his company had sought bankruptcy Sales and Operations Planning
protection. GT shares collapsed 93% on the news, wiping out roughly $1.4 billion in market
Social Media in Supply Chains
value. The story demonstrates why simply checking the boxes on sourcing strategies arent
enough; people actually need to manage and communicate with their suppliers, especially the Strategic Cost Management
important strategic ones. Strategic Sourcing
Supplier Diversity
Thanks FrankFeel free to discuss it at length! Let me know what they have to say. It is Supply Chain Systems
definitely an intriguing issue
Supply Chain Talent
Transportation Planning
Indeed, same here.
Thanks Robert Undergraduate Supply Chain
Regards
Thomas Johnsen Working Capital Management
Archives
Hans Hopmans February 2017
November 24, 2014 @ 1:16 pm
January 2017
December 2016
November 2016
when customer strength evolves to procurement power, it ends up with supply chain weakness October 2016
September 2016
August 2016
March 2016
February 2016
September 2015
August 2015
Continuing the Discussion
July 2015
Apples Sapphire Supplier: A Textbook Exa...
November 20, 2014 @ 11:49 am June 2015
[] Apple's Sapphire Supplier Story: A textbook example of why supplier relationship management May 2015
matters http://t.co/RJO145zM55 []
Leave a Response April 2015
March 2015
February 2015
January 2015
December 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
July 2010
June 2010
May 2010
April 2010
January 2010