The Complexity of Apple's Supply Chain
While Apple may claim to be an environmentally friendly company, this is no more than a clever tactic to manipulate reality. The truth remains that Apple, in it’s essence, is an environmentally friendly company. Their numerous suppliers located overseas, however, are not.
Apple has been able to cut costs by outsourcing to small factories largely located in China where labour costs are lower, and social and environmental responsibilities are more lax than in the Western world. Statistics given by Johnathan Watts in The Guardian indicate poor environmental and labour conditions both in factories and their surrounding areas.
The above faults in Apple’s complex supply chain give rise to the benefits of Dell’s Direct Business Model. This model of direct supplier-customer interaction allows Dell to develop personal relationships with customers and in turn receive feedback on what consumers want. These translate into increased demand and revenue for the company. Apple, on the other hand, is using their supply chain as a facade to cover up cost cutting behaviour and in turn damaging their reputation.
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