Can Tim Cook lead Apple toward better supply chain practices, including outsourcing to Americans? And will other manufacturers follow?
Yesterday’s reference to a Supply Chain Digital item from editor A. Selway Ryan was a true example of how a story on the Internet can lead you down a rabbit hole, looking for more information and discovering a Wonderland. It’s no surprise that a site dedicated to covering industry supply chains would be rich with links to both internal and external content; and one related link from Sunday’s story about Chinese manufacturers outsourcing to Americans for its factory work entitled “The Coming Supply Chain Renaissance” sounded encouraging, given our ongoing coverage of employment opportunities for people with disabilities in this sector.
The basis of Ryan’s column is media coverage of some of Apple’s less-than-savory outsourcing practices in third-world countries. But Ryan surmises that the appointment of Tim Cook to lead the computer manufacturing giant following the death of Steve Jobs will be a silver lining on that dark cloud:
The foundation of Apple’s business is its logistics — that’s why Cook got Jobs’ job. The fact is, in the 21st century, big business looks quite a lot like big logistics. Supply chain is the key to the whole enterprise. Supply chain managers have known for some time that manufacturing works best when waste is minimized, when staff are equitably treated, and when all operations are sustainable to the global community.
Ryan rightly goes on to point out that the smaller businesses always mimic the practices of their industry leaders, and his hope for a supply chain renaissance hinges on Apple showing its competitors once again how it maintains its position of having an “awe-inspiring supply chain.”
Digging further back into the Supply Chain Digital related links finds Apple doing just that at the close of 2011 with its decision to “insource” production of the Samsung A5 processor, which according to Kevin Scarpati’s story included a $3.6 billion investment in the facility where these microchips will be made.
Scarpati goes on to point out that the Lone Star State has long ago figured out it can compete with third-world countries in the contract manufacturing arena; something it’s southern counterparts like Alabama and Georgia are just now discovering. He writes:
With lesser real estate prices, lower taxes and looser business regulations, Texas poses an attractive market for innovators within the electronics industry. Bringing processor production to the United States emphasizes that point.
In addition to making a point, insourcing processor production can also bring additional jobs in the supply chain back to America, including assembly, packing, and sorting tasks offered by contract services organizations that provide jobs to people with disabilities. Think about that next time you fire up your iPhone or iPad.
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Image by lemagit, used under its Creative Commons license.