Apple’s ranking by Matthew Davis (a supply chain analyst with Gartner) as “world’s best supply chain for the past four years” is no surprise given the company’s seriousness in operational management. Over the years, Apple has been able to use its operational strategies as an asset by knowing what new products to produce and how to schedule them to its demanding customers. Apple’s close knit internal organisation is uniquely able to control its supply chain such  that even with the risk of massive product launches, its inventories are not much a risk. The company’s unique operations could be attributed to one of its co-founders, Steve Jobs , who made amazing operational decisions in order to beat competitors by delivering new products at an expensive cost but by faster means. He chose to fly new Apple products to its customers compared to other companies that opted for cheaper transportation but had their market easily snatched from them due to Apple’s readily available goods. It is this operational strategy that has enabled Apple to get manufacturing and transport discounts due to the bulk of products they produce. To some extent Apple has applied the direct business model whereby their designers work directly with the suppliers and therefore cutting off middle-men which decreases the production cost.

Sources

Apple’s Supply-Chain Secret? Hoard Lasers  (Bloomberg Business week Magazine)

 http://www.businessweek.com/magazine/apples-supplychain-secret-hoard-lasers-11032011.html