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    watch the youtube video:

    then answer
    Sequence of suppliers that contribute to the creation and delivery of a good or service.
    Based on the video, how does adding another supplier help Apple?
    Use video and one additional outside source.


Subject Business Pages 3 Style APA


How Adding Another Supplier Helps Apple


Apple Inc. sources its raw materials from a range of suppliers across the world including United States, Europe, China, and other Asian nations such as Taiwan. Nonetheless, the company continues to value the addition of novel suppliers into its existing supplier base owing to three reasons.

First, the addition of another supplier into its existing base of suppliers enables Apple to meet its ever growing production demand. As the company continues to grow, its demand for producing more products also increases (Wall Street Journal, 2013). Therefore, the firm has to expand its primary number of suppliers so that it can adequate acquire strategic raw materials and ensure constant production. Having a large pool of suppliers is strategic to the company’s production process, as it ensures constant flow of raw materials that adequately meets the growing production demand.

Second, adding a novel supplier into its value chain enables Apple to minimize production costs by replacing suppliers whose raw materials only serve to increase the firm’s cost of producing products. For instance, the company is on record for shifting away from Foxconn to Pegatron as means of reducing costs and producing low-cost Apple products (Wall Street Journal, 2013). Foxconn encountered manufacturing glitches that increased the cost of its products. As a result, Apple considered the supplier financially unattractive as a partner relative to Pegatron that could help in the production of low-cost Apple products (Wall Street Journal, 2013).

Third, the inclusion of a new supplier enables Apple to remain focused on its social and environmental obligation. The company prioritizes environmental and social responsibility, and its robust and longstanding devotion to a diverse base of suppliers exemplifies this commitment (Apple Inc., 2021). As such, by adding another supplier, Apple manages to reinforce its supplier diversity program and its ability to meet the demands of social and environmental sustainability.



Apple Inc. (2021). Apple and Procurement. Retrieved March 17, 2021 from: https://www.apple.com/procurement/

Wall Street Journal. (2013, May 30). Will an Apple Shift Impact Supply Chain? [Video file]. YouTube. https://www.youtube.com/watch?v=TnpRvtwYMWQ&t=4s





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