As noted in our earlier posting, there was rather significant supply chain related news involving the highly recognized supply chains of Apple, namely the open publishing of 97 percent of Apple’s supply chain suppliers in 2011. A supply chain shrouded in secrecy is now more visible, and an era of perhaps more openness and transparency may be the legacy that Apple new CEO, Tim Cook wants to portray.
Supply Chain Matters shares some of our impressions from reading the listing.
First, consider that with the huge volume of material output that makes-up Apple’s supply chain velocity, there are roughly just 200 suppliers listed. That reinforces Apple’s principles on concentrating its negotiation power on certain key suppliers for inbound materials, those that Apple can exert a lot of leverage and influence, not to mention some very long-term buying arrangements.
There are three contract manufacturers noted, but Hon Hai Precision Industry Co. Ltd. (Foxconn) is by far, the largest volume manufacturer for Apple. Consider that Foxconn’s total manufacturing related headcount, hundreds of thousands of people, could provide a considerate dent to any country’s overall unemployment rate.
There is a current hard disk drive shortage brought about by the monsoon related floods in Thailand. Two of the largest disk drive manufacturers, Seagate Technologies and Western Digital Corporation are both listed as suppliers, and with the addition of Hitachi-LG Data Storage, there is access to over 90 percent of worldwide HDD capacity.
By our count there are nine component and specialty component semiconductor suppliers including AMD, Hynix Semiconductor, Intel, Infineon, Qualcomm and others, which in total represent a global-wide footprint of capacity and a hedge against geographic related supply disruption.
We would be interested in our readers perceptions regarding this listing. Readers can either add Comments directly to this posting or send an email to: info <at> supply-chain-matters <dot> com.