How Apple became my supply chain temple
Alex Rotenberg
Leveraging exponential technology to digitalize the worlds supply chains, one customer and one industry at a time
I think the only reason you visit an Apple store is because you wonder what life is like on another planet. (Lewis Beck)
Steve Jobs used to say that the customer is the ultimate inspector. He is 100% correct.
Yesterday, we visited the Apple store in London Covent Garden, and it became our second home: we made a real friend, bought the Iphone Max and Ipad Pro, and adhered to the latest upgrade program, to stay on the latest versions, for many more years.
This means my wife and myself, who were already raving fans, married Apple for life (or almost).
We love their beautifully designed products, sustainable consumer model and their stance against surveillance capitalism, encrypting and securing all private information, making sure only the customer can access their private and secured information.
My personal admiration extends from the consumer to the professional in me. Apple is still and by far my supply chain champion.
Anno 2022, supply chain excellence looks like this:
I. Product availability
Great companies and Supply Chain leaders know their constraints, they understand their supply priorities, and only commit when products are Available-to-Promise (ATP).
This capability is the result of very sophisticated constraint management and allocation policies. Experts talk about Capable-to-Promise (CTP) and Allocated-Available-to-Promise (AATP).
What it boils down to for Apple is that a promised due date means the product is in store. And if required, the workforce is in standby, ready to provide hours of customer service, when the customer picks up their product!
II. Customer education
Your customers are your best advocates. If they don't know how to use your product, what 's the point of designing great features?
In an Apple store, one does not only receive education about what to buy, but about the entire lifecycle of the product.
We spent over 4 hours with our Apple Professional yesterday. We were explained all the new product features, the main differences between the various models and tested the available color schemes for the accessories to make the perfect choice.
We also learnt about the benefits of the upgrade program and how we could enjoy photography classes and use the new camera functionality during neighborhood walks in the City, then share our pictures with the Family Sharing option, or find each others phone with the Find me traceability solution. Even Belkin glass cover protection and how to respond to theft were on the agenda.
In the eyes of most companies, a customer must be educated about what to buy. In the eyes of Apple, it's about how to become an Apple Citizen and raving fan!
III. Sustainability
Last but not least the recycling model Apple designed, is better than any other I encountered.
Conscious consumers have various options to support recycling of their devices. The rest value and procedures are transparent and the products designed as part of this circular supply chain. the only improvement one could add to the full traceability of each Apple device would be an Apple blockchain.
My forecast is we will visit the Covent Garden Apple temple in London very often. Because for a supply chain enthusiast, expert in digital innovation and customer-centricity, there is so much to learn from Apple about world-class products, fashion retail and lifelong learning.
If the goal of Apple was to convert me to their religion, and make sure I will come back for regular visits, they definitely achieved their goal.
See you in the Apple store!
Vice President, SCM | Que Será, Será
3 年Nice read. And the clean ambience is ideal marketing!
Owner / President / Founder at DCRA Inc. & DCRA Technologies
3 年Apple is going to need some new "friends" in production if China does a "Russian" on Taiwan ? Foxconn is their Taiwanese HQ'ed contract manufacturer with mostly dedicated plants to Apple on mainland China ? Seems like Apple would be smart to deploying an alternative manufacturing approach in North America ? Here is a great move they could make now to enable a smooth transition ! https://soptime.wordpress.com/2020/06/07/the-silver-lining-of-covid-19-a-call-for-u-s-manufacturing/
Excellent writeup Alex.. brings out the nuances on how supply chain helps Apple have such loyalty!!