Assignment Task
Introduction
Supply Chain management covers all parts including delivery and transportation, operations, and production. An efficiently and effectively delivery and transportation offers significant cost and time saving benefit to the business, improve customer satisfaction and increase profitability. This assignment will discuss mainly about delivery and transportation, quality management and sustainable supply chain in term of concepts and practices.
Delivery and transportation operations
Delivery and transportation operations are crucial contributor to a company where it physically connects business to its supply chain partners (supplier, distributor) and end consumers. It is also a competitive advantage given the ability to properly serve customers and reach their satisfaction. Apple Inc., the famous electronic company, not only sell iPhones to global markets, the company also has a global connection of 200 suppliers and manufactures located in U.S., China, Europe, and other countries in Asian (Apple, 2021).
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Sustainable supply chain
In recent years, there are increasing number of companies emphasize on environmental and social issues. Many companies have been trying to response to critical issues by asking their suppliers to comply in order to create sustainability through entire supply chain. With reference to the sustainability goals set by United Nations, there are five goals that are relevant to supply chain aspect. Apple Inc. is one among many companies taking steps to improve their processes and by 2030, the company aim achieve decarbonization over global supply chain.
Responsible consumption and production. Apple tested new solutions on the hydrogen-fueled truck for transport with DHL. The testing of hydrogen-fueled is cover distance around 200 km cross-border route. DHL has a goal to use 30% of sustainable fuels. (Mark Segal, 2021) However, Apple, have designed new facilities with the objective to use energy efficiency and they can save up to 30 percent of energy. (Apple,2023)
Climate action. Electronic industry such as Apple Inc. is the part of the industry that made carbon emission. Apple is encouraging suppliers to address the greenhouse gas which is the main factor affecting climate change. Apple has reduced 40?rbon emission since 2015 and it has set target to reduce more than 75?rbon emission in 10 years through
Low-carbon design by selecting the material and production process to be less carbon emission. Since 2015, Apple used the recycle aluminum in all products by 68% of all components.
Energy effectiveness with additional tools to reduce the energy use.
Renewable electricity and to all supplier with 100% renewable electricity.
Direct emissions abatement from changes the source of energy. Using non-fossil based to be a power in manufacturing process. (Apple,2023)
Use of clean energy. Increase use of renewable energy sources utilized in the production process. Apple is investing in the renewable projects with its suppliers around the world to use renewable energy. As a result, the company were able to produce 500 megawatts of solar and other renewable energy projects with suppliers. In China, suppliers committed to use clean energy to produce iPhone by using on-site solar system. However, Japanese supplier who has limited to build the solar system on rooftop invested in on-site solar system to eliminate the limitation. In addition, there are projects that aim to use clean energy such as wind energy in Japan. Currently, about 213 Apple’s partners agree to use the clean energy and they are expanding this project to others suppliers around the globe to drive the economic. (Apple, 2023) They have aim to use 100% renewable energy with three principles.
Displacement: Apple is replacing the polluting energy with renewable energy which will be replace 100% of total energy used in facilities.
Additionality: renewable energy to use in the manufacturing.
Accountability: Apple has measuring and tracking the source of energy by using 3rd party registries to ensure that the renewable energy has been supplied to Apple only.
Industry, innovation, and infrastructure. Apple established the project with their partnership Atea, the IT company who provides IT infrastructure solutions to collect end-of-life iPhone devices from end customers and its retail stores for recycling. This solution is to help supplier who has limited capability of recycling infrastructure and to help them become a first zero waste site in the country. The company introduced tray reuse programme that currently used by suppliers in China. Moreover, tray reuse can reduce the virgin plastic for 5,000 metric tons in year 2021 (Apple, 2023).
Sustainable cities and communities. Apple strengthen efforts to protect and safeguard not only its own supply chain but also the world’s environment. Forest product such as virgin fiber is still a necessary part for producing paper and packaging. The company is responsible for transparent paper sourcing and create sustainable working forests. This project first launched in United States in 2015 and later expanded to China. The company works with its partner to create innovative approach to decrease risk from forest product supply and prevent private property possession. This initiative not only provides a steady supply of sustainably harvested wood to paper and pulp mills, but it also prevents forest habitat fragmentation, addresses climate change, and enhances local water and air quality (Apple, 2017).
When iPhone is designed, Apple Inc. oversees demand of components and starts sourcing from a global network of suppliers and manufacturers (IDB, 2013). As depicted in figure 1, suppliers and manufacturers around the globe ship components to its main assembly facilities in Zhengzhou, China. The company must manage with suppliers to guarantee that assembly can begin without delay. After that, workers assembly and pack the smartphones in pallets, put in unmarked containers accompanied by a security detail, loaded on trucks, and fly in Boeing 747 which can carry about 150,000 iPhones (Bamboo Innovator, 2013). The smartphones then ready to be transported to 1) end consumers who bought from Apple’s Online Store and 2) warehouse in California for other distribution channels (OSU.EDU, N.D.).
