Apple Inc.

“The Digital Supply Chain”

Digital Supply Chain

• Encompasses the process of the delivery of digital media from the point of origin to the destination

• Similar to the physical supply chain process

Evolution

• Warehouses replaced with Data Centers

• Boxes replaced by Bits

• Trucks replaced by Bandwidth

An Easier Supply Chain

• No inventory carrying costs

• No purchase orders

• No supplier scorecards

• No trucks• No quality issues

New Way of Thinking

Main Process• True on-

demand product availability

• Ease of use and speed for content search and activation

• Pricing and subscriptions

• Quality management built on licensing and refunds

Digital Supply Chains

• Innovation• Time to

Market• Customer

Service

Competition

• Videos• Television• Games

Challenges

• Understanding the Quality

• Cost• Speed of

Infrastructure to support the digital supply chain

Apple’s iTunes

•#1 Retail music store