Responsibilities and Duties of the Logistics Unit in the Success of Apple Inc.
Topic/ Reference organization: Apple/ MAC
The Session Long Project for this Capstone course is based on two major phases (activities) for each of the five modules:
Activity 1 (Assessment Phase) Describe and evaluate how your Case study organization approaches five contemporary logistics issues explored in the modules. For example, Module 1 is focused on exploring and describing the placement of logistics in the organizational structure. Module 2 gives you the opportunity to assess the feasibility of the organization's use of third and fourth party logistics providers. Module 3 examines the role benchmarking and performance assessment play in your organization. Module 4 explores adaptations the organization is making to adjust to the volatility of geopolitical issues. Module 5 demonstrates the role planning plays in the design of a logistics system.
Activity 2 (Improvement Phase)
Display your creativity and demonstrate integrative and synthesizing skills based on the current course and on previous courses taken in logistics and related areas (i.e., LOG301, LOG302, and LOG401). Assess how your Case study organization might better address the five issues described in the first phase.
Whenever possible integrate information from previous courses along with providing examples based on your own experiences to illustrate and support the points discussed in the essay.
Phase 1 (Assessment Phase)
Briefly describe the organization you have selected for the SLP, discuss where the unit responsible for logistics is in the organizational chart, briefly describe the duties and responsibilities of the logistics unit, and note the level of recognition senior management gives the unit.
Phase 2 (Improvement Phase)
Assess how and if logistics operations could be more effectively and strategically integrated into the organizational structure (Phase 2).
Then on the next section/ phase write about:
Phase 1 (Assessment Phase)
Describe and assess your organization's experience, if any, with 4PLs (“virtual” logistics service providers [VLSP]).
Phase 2 (Improvement Phase)
Determine if your organization could more effectively use the services of 4PLs (VLSP). If your organization has no experience with 4PLs (VLSP), discuss the major advantages and disadvantages that might result from using a VLSP for the organization.
For the next section go into detail on:
Activity 1 (Assessment Phase)
Describe and assess how benchmarking is used to evaluate the performance of the logistics function within your organization.
Activity 2 (Improvement Phase)
Explore how your organization might enhance logistics operations by incorporating greater use of benchmarking and performance metrics.
For the next section go into detail on:
Activity 1 (Assessment Phase)
Discuss the major operational threats your organization's logistics functions face as a result of global terrorism.
Activity 2 (Improvement Phase)
How might your organization better mitigate the threats of terrorism relative to its logistics operations?
Armed forces personnel who believe they may have difficulty answering these questions because of security concerns should shift the scale of inquiry to the logistics risks the nation faces and how it might better mitigate vulnerability to these risks.
Then explain/ describe:
Activity 1 (Assessment Phase)
Describe and assess whether your organization uses comprehensive logistics planning effectively.
Activity 2 (Improvement Phase)
Explore how your reference organization might more effectively implement comprehensive logistics planning.
SLP Assignment Expectations
Display an in-depth understanding of the unit responsible for logistics, the responsibilities of the unit, and the placement of logistics in the organizational chart of the reference organization. Assess the selection feasibility and rationale that the Case study organization will support in the two phases of the exercise. Show critical thinking skills in evaluating the current placement of logistics in the reference organization and how logistics might be more effectively integrated into the organizational structure.
Student:
Professor:
Course title:
Date:
Apple/MAC
Phase 1 (Assessment Phase)
The selected organization is Apple/MAC. This company is involved in designing, manufacturing and marketing portable digital music players, personal computers, mobile communication and media devices, and sells various related software, networking solutions, peripherals, services, in addition to 3rd-party digital content and applications. Apple’s products and services include Apple TV, iPod, Mac, iPhone, a portfolio of professional and consumer software applications, iCloud, the OS X and iOS operating systems, as well as service, accessories and support systems (Apple Inc, 2015). In the organization chart, the unit responsible for logistics is in the operations department. It is worth mentioning that logistics operations at Apple are outsourced and there fall under the operations department. This is illustrated in the figure below:
Logistics at Apple is not a core competency since the company focuses largely on developing innovative and reliable devices which would enhance people’s way of life. The responsibilities and duties of the logistics unit include working with logistics partners who possess the expertise, network, as well as experience to move large quantities of products swiftly and without any loss or damage (Apple Inc, 2015). If Apple did not have a logistics partner – third party logistics provider (3PL) –, then all the designing, research, and troubleshooting the company is putting itself through in developing and innovating new products would certainly be worthless. Apple’s senior management gives this unit full support and therefore the level of recognition is high.
Phase 2 (Improvement Phase)
Logistics plays an essential role in the success of Apple Inc. Logistics operations could be effectively and strategically integrated into the organizational structure. This could be accomplished by positioning it in the functional organization alongside the functions of human resources, production or finance. Logistics could be established as an operational function. In essence, logistics could be integrated decentrally or centrally within the company’s organizational structure as an added operation. Consequently, it is positioned on the same level as other crucial operational functions for instance procurement, sales, and production.
Logistics in a functional organization
Extensive centralization could be accomplished if the logistics unit is positioned directly under the company’s managerial level (Rushton & Walker, 2009).
Phase 1 (Assessment Phase)
4PLs (virtual logistics service providers) refers to strategic utilization of external parties in performing activities that are typically handled by a company’s internal personnel and resources. Fourth-Party Logistics basically implies that one business organization can outsource the whole management of its supply chain to a different company including all the assets, management as well as planning of the process (Xiang, 2014). The Fourth-Party Logistics services provider is basically a supply chain integrator. The 4PL organization acts as a single interface between customers and the full scope of supply chain services. Gudehus and Kotzab (2012) noted a 4PL organization has personnel who have the best skills and expertise from the founding partners and it has to be assessed on a regular basis against international standards. The Fourth-Party Logistics services provider is usually a separate organization created as a joint venture (JV) or it could be long-term contract between the client and its partner or partners. At the moment, Apple does not have experience with 4PLs (VLSP) since it primarily uses 3PLs.
Phase 2 (Improvement Phase)
There are several advantages and disadvantages that may result from using a VLSP for Apple. Advantages: VLSP presents a solution which integrates the advantages of insourcing and outsourcing to provide the business organization with maximum overall benefit. The main advantages include material flow optimization, the company will achieve gain in productivity, there would be considerable logistics cost savings, and there would be a single point of contact (Gudehus & Kotzab, 2012). With 4PLs, every aspect of Apple’s supply chain would be managed by the 4PLs organization and Apple will be able to focus on its core competencies of providing outstanding, high-quality devices. The 4PL organization will provide Apple with a wider scope and manage the whole of Apple’s supply chain. Moreover, a fourth-party logistics services provider is neutral and manages the logistics process in spite of what warehouses, forwarders, or carriers are utilized (Xiang, 2014).
Disadvantages: there is risk of too much disruption to the existing business of the primary client after the contractual arrangements are made. These disruptions may include procedures for moving client employees into their new roles in the fourth-party logistics company (Gudehus & Kotzab, 2012). Secondly, changing industry dynamics could actually make some or even all of the services provided by the 4PL company obsolete. Thirdly, the 4PL relations are usually long-term partnerships. As such, it is not easy to change partners since switching costs are high. Changing partners may result in penalty costs for breaking the long-term contract and there could also be a decline in efficiency (Xiang, 2014).
Activity 1 (Assessment Phase)
In a business organization, supply chain operations need to be reviewed continually in order to identify the areas in which deficiencies could be removed or improvements made. One way of doing this entails performing several benchmark tests on the supply chain processes. The process of benchmarking could offer a business organization with some estimate of the benefits attained by the carrying out of any improvements (). At Apple, benchmarking is used to evaluate the performance of the logistics functions by assessing the logistics costs such as expenditures and...