The process of offshoring and outsourcing of the manufacturing items to the emerging and developing countries has been seen to be resulting in number of issues which are seen to be related to number of factors like global standards and social challenges. The present discourse aims to discuss on the opportunities and risks does globalisation bring into SC and SCM at Apple (Lebaron and Lister 2015).
Opportunities and risk of SC brought by globalisation
Globalization has been seen to be significantly contributing to the opportunities in the business. These are needed to be depicted in terms of improved JIT, customer requirement, movement away from the vertical integration, resolving the intricacies in the transportation system and global spread of the manufacturing process. In addition to this, it is also conducive in terms of defining various types of the other process which ranges from organization’s environment. These considered as per the various types of the organizational elements which are needed to be considered with customer’s environment and suppliers environment. Globalization has also helped the nations in mitigating the internal risk which exists in the SC process of the companies. These are mainly seen with those countries where there is lack of a particular resource.
Opportunities and risk of SC brought by globalisation at Apple
The different perspectives of the advantages of the SC process between US and China needed to be depicted as per export process of cell phones, computers and other electronic equipment’s. In terms of the overall electronics goods the most significant export has been inferred in terms of cell phones and household goods (Sarfaty 2015).
In terms risk in the trade balance the estimated trade of iPhone was estimated to be $ 240. However, the value-added trade was done only worth $ 8.5. The main form of the problem associated to the of iPhone SC to be considered as per the prevailing trade policies in China which is mainly responsible for delay in the supply of the materials. There are number of sources which has suggested that the existing problems of trade are seen to be depicted in terms of the lesser value gained from the US economy during the assembling of the iPhones (Vermeulen 2015).
The innovative aspects of the trade with China needed to be discerned in terms of advancements in technology and innovation. In the past the consumers have also significantly gained from the software development which are associated to the development of the apps by the developers in China. Therefore, in some aspects use of China is seen to be conducive for efficiently using the using the supply chain of China (Baldwin and Lopez?Gonzalez 2015).
Some of the other opportunities of Apple needs to be also discerned as per taking the advantage of bringing new products to the markets which are comparable to its competitors especially Korean giant Samsung. Therefore, it is important for Apple to take the necessary steps to mitigate the SC risks and focus on the opportunities.
Baldwin, R. and Lopez?Gonzalez, J., 2015. Supply?chain trade: A portrait of global patterns and several testable hypotheses. The World Economy, 38(11), pp.1682-1721.
Vermeulen, W.J., 2015. Self?governance for sustainable global supply chains: can it deliver the impacts needed?. Business Strategy and the Environment, 24(2), pp.73-85.
Lebaron, G. and Lister, J., 2015. Benchmarking global supply chains: the power of the ‘ethical audit’regime. Review of International Studies, 41(5), pp.905-924.
Sarfaty, G.A., 2015. Shining light on global supply chains. Harv. Int'l LJ, 56, p.419.