INTERNATIONAL LOGISTIC AND

SUPPLY CHAIN OUTSOURCING

CURRENT ISSUES AND INFLUENCES

Chapter Summary

Prepared by:

Aditya Lukmanjaya – 3094815

Eka Darmadi Lim – 3094802

FACULTY OF BUSINESS AND ECONOMICS

UNIVERSITY OF SURABAYA

EVEN SEMESTER 2011-2012

Deregulation, packaging apple

Smaller packaging

Apple employs teams of design and engineering experts who develop

product packaging that’s slim and light yet protective. Efficient packaging

design not only reduces materials and waste, it also helps reduce the

emissions produced during transportation.

For example, the packaging for iPhone 4 is 42 percent smaller than for the

original iPhone shipped in 2007. That means that 80 percent more iPhone

4 boxes fit on each shipping pallet, more pallets fit on each boat and plane,

and fewer boats and planes are used — resulting in fewer CO2 emissions.

Apple Recycling program:

Once an Apple product reaches the end of its useful life, we will help you

recycle it responsibly. Apple has instituted recycling programs in cities

and college campuses in 95 percent of the countries where our products

are sold, diverting more than 115,504 metric tons of equipment from

landfills since 1994. Our goal in 2010 was to achieve a worldwide

recycling rate of 70 percent. (To calculate this rate, we use a measurement

proposed by Dell that assumes a seven-year product lifetime. The weight

of the materials we recycle each year is compared to the total weight of the

products Apple sold seven years earlier.) We met and exceeded that goal

in 2010. This far surpasses the last reported numbers from Dell and HP,

which were each lower than 20 percent. In 2011, Apple global recycling

once again exceeded our 70 percent goal, and we are confident that we

will maintain this level through 2015.

Product recyclability

Apple’s approach to recycling begins in the design stage, where we create

compact, efficient products that require less material to produce. And the

materials we do use — including arsenic-free glass, high-grade aluminum,

and strong polycarbonate — are reclaimed by recyclers for use in new

products. Even our product packaging uses recyclable materials wherever

possible.

Longer-lasting products

Apple designs products that last. The built-in battery in our MacBook Pro

lineup is a perfect example. Other notebook batteries can be charged only

200 to 300 times. The MacBook Pro battery can be charged up to 1000

times.6 and because this battery lasts up to five years, MacBook Pro uses

just one battery in about the same time a typical notebook uses three. That

saves you money, produces less waste, and increases the lifespan of your

MacBook Pro.

Responsible recycling:

All e-waste collected by Apple-controlled voluntary and regulatory

programs worldwide is processed in the region in which it was collected.

Nothing is shipped overseas for recycling or disposal. Our recyclers must

comply with all applicable health and safety laws, and Apple does not

allow the use of prison labor at any stage of the recycling process. Nor do

we allow the disposal of hazardous electronic waste in solid-waste

landfills or incinerators.

Supplier List PDF

LTE Module (4G) Qualcomm

Apple A4, A5, A5X Chip Samsung Electronic

iPhone, iPad Display Sharp

Apple Flash Memory 16,32,64Gb Toshiba & Samsung

Chip of touch screen Broadcom

Touch Panel Wintek

Case (iPad) Catcher Technologies

Accelerometer STMicroelectronics

Batteries Simple Technology

Home shop apple

Apple already open “Apple Store” that we can purchase every apple

product right on your computer screen, Apple store open in USA, for the

first time, but already expanse to Indonesia, the purpose apple open the

online store, to make customer easier to buy the product, the product that

customer order will be delivered within 2 weeks.

For example I want to buy ipad

Partnership

1. AT&T and Verizon Cellular Provider

AT&T is one of Apple's closest business partners and was the sole

U.S. carrier of the iPhone between 2007 and 2011. In February

2011, competitor Verizon Communications also began selling the

iPhone 4.

For AT&T, the iPhone has been a major hit. The company, for

example, had 3.6 million activations of iPhones in just the first

three months of 2011, 23 percent of whom were new subscribers to

AT&T. In the first half of this year alone, AT&T has had 7.2

million iPhone activations.

After Apple announced that Steve Jobs would step down as CEO,

the chairman and CEO of AT&T, Randall Stephenson, released a

statement saying Jobs "is one of the industry's most gifted

entrepreneurs, visionaries, and creative minds." The wireless

provider also said it looked forward to collaborating with the new

CEO Tim Cook and his team

Verizon initially lost out on the iPhone when Apple went with

AT&T in 2007.

But in February 2011, the largest U.S. telecommunications carrier

ended years of anticipation by launching its first Apple product, the

iPhone 4. Verizon and Apple had reportedly been in talks since

2008 and spent a year testing the iPhone on Verizon's CDMA

network.

About one million Verizon iPhones were sold in just the debut

weekend, with 60 percent of the sales coming from pre-orders. In

total, 4.5 million new iPhones connections were sold by Verizon in

the first six months of the year.

2. TPK Holdings

TPK Holdings is the world's largest touch-panel supplier by

volume, with 30 customers in total from the U.S., Japan, and South

Korea. The Taiwanese company is the largest supplier of touch

panels to Apple for iPads and iPhones.

More than 70 percent of TPK's revenues of $1.12 billion in the

second quarter of this year came from Apple. Robust sales of

Apple's products helped TPK post record profits in the latest

quarter.

Analysts have been bullish on the stock, with UBS forecasting a 40

percent upside for the shares.

3. Foxconn Producing Apple component

Foxconn Technology Group is the world's largest electronics

manufacturer. Foxconn is the trade name for Hon Hai Precision

Industry , which is the largest exporter in the Greater China region.

The Chinese tech giant assembles Apple's iPads, iPhones, iPods,

and Mac computers in manufacturing plants across China and

Taiwan. Foxconn came under fire last year for working conditions

in its factories, after a string of suicides at its Shenzhen plant. The

company has responded by setting up suicide hotlines, offering

counseling, and installing safety nets at its plants.

Foxconn has also been trying to cope with rising labor costs in

China. To meet the challenge, the company is planning to switch to

using robots and reportedly will deploy one million of them within

three years up from about 10,000 currently in use.

4. Intel Processor manufacture for MAC Product

Intel's relationship with Apple began in 2005, when Jobs

announced that Apple would make a transition away from IBM's

PowerPC microprocessors in its Macintosh computers to

processors made by Intel. The first generation of Intel-based Macs

were released in 2006.

Reports suggest that Apple may once again turn to Intel to create

mobile-processor chips that power devices such as the iPhone and

iPad.

The company has been trying to gain market share in the rapidly

growing area of wireless chips, which has been dominated so far

by Qualcomm. Last year, Intel bought German chipmaker Infineon

Technologies' wireless business for $1.4 billion. Infineon's wireless

customers include Apple, Samsung Electronics and Nokia .

5. Quanta Computer Manufacture motherboard, MAC component

Taiwan's Quanta Computer manufactures the iMac and Macbook

line of computers for Apple. The Taiwan-based company's

relationship with Apple dates back to the second-generation

WallStreet PowerBooks of 1998.

Quanta is the largest manufacturer of notebook computers in the

world, supplying brands such as Hewlett-Packard and Gateway . In

fact, one out of every three laptop PCs are manufactured by the

firm.

But the company has been under pressure lately, reporting a

month-over-month drop in sales in July. The company shipped

31.9 million portable PCs between January and July of this year.

6. Samsung Electronics Storage Flash

Samsung is the world's largest maker of memory chips. The South

Korean technology giant, which supplies chips and flash drives to

Apple, has had a turbulent relationship with Apple in recent years,

acting as both a supplier and a competitor in the smartphone and

tablet space.

The two companies have been battling over the past year, with

Apple accusing Samsung of copying the iPhone's software and

layout. In turn, Samsung has filed a counterclaim against Apple

over patent infringement.

On Thursday, Samsung shares rose after a favorable court ruling in

Netherlands and news that Steve Jobs stepped down as CEO.

Despite the lawsuits, the two have continued their manufacturer

and supplier partnership. Reports suggest that the partnership

between the two is worth more than $5 billion.

7. Toshiba LCD Panel Supplier

Toshiba supplies the LCD panel for the iPhone 3GS, flash drives

for the iPhone 4, and is reported to be involved with the Retina

display of the iPhone 4.

The Japanese conglomerate is listed on four different stock

exchanges around the world, including New York and London.

In December, the company announced plans to spend $1.2 billion

to build a factory in Japan's Ishikawa prefecture to make small

high-resolution LCD panels, mainly to supply Apple's iPhones.

According to the Nikkei business daily, Apple would also invest in

the plant.

8. Catcher Technology

Catcher Technology is one of the Taiwan’s top makers of

magnesium and aluminum casings for PCs and handsets.

The company supplies metal casing for Macbooks, and has seen its

shares surge nearly three-fold over the past year.

The stock now trades at 17 times earnings on the back of large

orders placed by Apple. Citigroup, Macquarie, and Bank of

America Merrill Lynch have all raised their share-price estimates

for Catcher after the firm posted earnings of $82 million from

April to June, up 24 percent from the first quarter, and 183 percent

from 2010.

9. Wintek

Wintek is a Taiwan-based electronic-component maker, with

operations in China and India. The firm supplies touch screens for

Apple’s iPhones.

The company has been facing pressure on the pricing front.

According to a report last week from Digitimes, Wintek has

received touch screen orders from Apple at prices nearly 50

percent lower than previous shipments, even as volumes have

increased significantly for the third quarter.

Analysts are speculating that Apple could be preparing for the

usual price cuts ahead of a new product release—the iPhone 5.

The company also made headlines earlier this year after reports

surfaced that workers in China were allegedly poisoned by

chemicals while making the panels. The company has already paid

about $1.5 million to 91 workers poisoned in 2009.

Employees wrote a letter to Jobs appealing for help after the

poisoning, and an Apple representative visited the plant to listen to

their demands. Apple has since ordered Wintek to stop using the

chemical, N-hexane, and provide evidence that it has been

removed from production lines.