Response to Discussion Post

I feel that Apple Inc did a great job during the pandemic. Since their stores were closed, they didn’t let those empty spaces go to waste. They started shipping products from their store stock, which guaranteed even faster deliveries (Esposito, 2020). Using their retail stores as distribution centers was a new step for them, but this strategy has been done for some time by other companies.

Apple also has an exquisite supply chain operation. They purchase "components and materials from various suppliers, then get them shipped to the assembly plant in China. From there, products are shipped directly to consumers who bought from Apple’s online store" (Lu), through a straightforward website or phone app. Their other distribution channels, such as retail stores and other distributors such as Bestbuy or Target, Apple has a central warehouse in Elk Grove, California.

One advantage of their fulfillment model was that it allowed "reduced delivery time for thoes living far away from its warehouses" (Esposito, 2020). Typically Apple products are shipped from warehouses near the consumer’s region or directly from China in some situations, such as new iPhone releases. Another advantage is that shipping products from their retail store will help reduce operating costs. Along with cost reduction, consumers can now expect their e-commerce purchases with same-day delivery for most orders.

One disadvantage of this new fulfillment strategy is that customers cannot choose whether a product is shipped from a warehouse or Apple store. Apple selects the best option available based on the delivery address and analyzes the best solution. While Apple does not have their own delivery service, they have partnered with FedEx and UPS to deliver the orders.

Lu, C. (n.d.). Apple supply chain – the best supply chain in the world. Inventory Management Software. Retrieved January 28, 2022, from https://www.tradegecko.com/blog/supply-chain-management/apple-the-best-supply-chain-in-the-world

Espósito, F. (2020, October 9). Apple using retail stores as distribution centers to speed up new product deliveries. 9to5Mac. Retrieved January 28, 2022, from https://9to5mac.com/2020/10/09/apple-using-retail-stores-as-distribution-centers-to-speed-up-new-product-deliveries/

Post Question:

In an omni-channel environment, many network models exist that can be used to service retail stores and Internet consumers. Additionally, when designing customer fulfilment models, retailers focus on speed of product to and availability of products for customer (effectiveness) and the cost of providing that service (efficiency). Based on these statements, describe a business or organization in which you feel is doing a good job at this? Provide some advantages and disadvantages of their fulfilment model.