“Tim Cook is quoted as having said the inventory is not only evil but that it’s fundamentally evil,” Horace Dediu reports for Asymco.
“With just-in-time production inventory can be reduced, at least work-in-progress inventory,” Dediu reports. “Unfortunately inventory cannot be completely eliminated. The fact remains that you sometimes need to stockpile product for launch and need to have some on hand depending which way it’s sold. There is also substantial channel inventory (which is off Apple’s books but still evil) that needs to be in the hands of distributors.”
Dediu reports, “Tight inventory management has become a characteristic of Apple and that contributes to getting ranked number one in Supply Chain Management. So we can expect that Apple runs a tight ship. In fact we have evidence of this through the ability to track our purchases from when they ship out of a factory in China all the way to our homes.”
Read more in the full article – recommended – here.