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Why Apple Likes Its Inventory Lean and Mean

In the 1990s, Tim Cook shifted Apple(NASDAQ:AAPL) to an incredibly efficient, contract-based manufacturing model.

In this segment from the Industry Focus: Tech podcast, Dylan Lewis and Evan Niu talk about why -- outside of the obvious reason of reduced labor costs -- the company made that move. Find out just how efficient Apple's supply chain is compared to its competitors', how much flexibility this model allows the company, and how long it takes for the company to clear inventory of each model.

Dylan and Evan also talk about some of the very real risks associated with the contract model -- from quality control to concerns about working conditions, and the risks associated with putting that much of your intellectual property in another companies' hands.

 

Last modified onMonday, 06 June 2016 02:57
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