Uncovering the Truth on Apple’s Supply Chain

In Rachel Lee’s blog, she explores the complexity of the supply chain of Apple. She mentioned that Apple outsources to small factories largely located in China. This allow Apple to cut cost significantly as labour costs in China are lower. Report indicates poor environmental and labour conditions both in factories and their surrounding areas. In order to develop a good image of being an environmental friendly company, Apple should start tackling the pollution problems they have created rather than being secretive about their supply chains.

 On the other hand, the complex supply chain has also created a barrier for Apple to monitor the pollution level during the production process. To ensure a stable and low cost supply of components, Apple order components from many different vendors such as Samsung and Toshiba. It is not difficult to understand Apple’s approach after witnessing the devastating effect that the Japan earthquake had brought to the global supply chain. However, it is difficult to trace the whether or not the suppliers had fulfilled Apple’s supplier code of conduct.