Physical_Distrubution

Physical DistributionName
[Institutional Affiliation(s)]Physical DistributionThis essay evaluates the physical distribution of Apple computing devices. The article, “Apple Supply Chain – The best supply chain in the world,” authored by Clara Lu at tradegecko.com blog in 3rd April 2014, would be used for the analysis. The source expounds on the strategies that Apple Company employs in ensuring high levels of product sales. The article also explains how the company cut down on the number of its suppliers. Further, the piece describes how the enterprise manages its inventory. The work is an excellent choice for a better understanding of physical distribution because it analyzes how Apple’s products are shipped.
The article explains how Apple devices are distributed directly to the consumers. Apple’s assembling plant is located in China, and once products are finished, they are distributed directly to consumers through UPS or FedEx, after they buy them from their online store (Lu, 2014). However, the company has three sanctioned wholesalers consisting of Success World Limited, Everwish Trading Limited, and Innovix Distribution (Apple Inc., 2018). Shipments to retail stores and distributors are made from its central warehouse in Elk Grove, California. According to Chicago Strategy Associates (2018), the Apple has its retail channel. A strategy used by Apple for the smooth operation of inventories is to sell the products the second day after they arrive at their stores (Lu, 2014).

Apple makes sure that its central warehouse has a perfect data synchronization with an estimated 250 stores it owns (Lu, 2014).
Apple transports its devices to consumers once they buy goods from Apple Online Store and other shipments are made from the central warehouse based in California (Lu, 2014). According to Lu (2014), Apple manages its inventory by cutting down on the number of its suppliers as well as the number of warehouses. The physical distribution network of Apple’s products relies on its retail channel, Apple-authorized distributors, and approximately ten warehouses (Lu, 2014).
References
Apple Inc. (2018). Apple Authorized Distributor. Retrieved from https://www.apple.com/hk/en/buy/reseller/distributor.html
Chicago Strategy Associates. (2018). Distribution Strategy Case – Apple Computer. Retrieved from http://www.chicagostrategy.com/case-studies/apple-inc/
Lu, C. (2014, April 3). Apple Supply Chain – The Best Supply Chain in the World. Retrieved from https://www.tradegecko.com/blog/apple-had-the-best-supply-chain-in-the-world-for-the-last-four-years-here-is-what-you-can-learn-from-it