Five years ago, Apple (AAPL) design guru Jony Ive decided he wanted a new feature for the next MacBook: a small dot of green light above the screen , which shone through the computer's aluminum casing to indicate when the camera was on. The problem? It is physically impossible to shine light through metal. I brought in a team of manufacturing and materials experts to figure out how to make the impossible possible, according to a former employee familiar with the development who requested anonymity to avoid annoying Apple. The team discovered that they could use a customized laser to punch holes in aluminum small enough to be nearly invisible to the human eye but large enough to let light through. Applying that solution to large volumes was a different matter. Apple needed lasers, and lots of lasers. The team of experts found a US company producing laser equipment for producing microchips that, after some modifications, could do the job. Each car typically costs around $250,000. Apple convinced the seller to sign an exclusivity deal and has since purchased hundreds of them to punch holes for the green lights that now shine on the company's MacBook Airs, trackpads and wireless keyboards, and yet, most Apple customers probably never gave that green a second thought, but its creation speaks of a huge competitive advantage for Apple (Satariano & Burrows, 2011). Apple's efficiency in sourcing, manufacturing and delivery was ranked no. 1 in the world for the last four years by Gartner ( Hofman, 2013) is not without risks, for example:• The global economy could affect the Company.• Some retailers may also distribute products from competing manufacturers.• Inventories may become obsolete or exceed expectations...... middle of paper...safe and ethical working conditions. They should also have access to educational opportunities to improve their lives. Through a continuous cycle of inspections, improvement plans and verification, we work with our suppliers to ensure they respect our Code of Conduct and live up to these ideals.” (Supplier Responsibility at Apple, n.d.)Apple has the opportunity to use its influence not only to reduce supply chain risk, but it can use its market strength to change the industry as a whole. Apple must continue to weed out suppliers who violate not only their code of conduct but also all violations of workers' rights by increasing factory audits and inspections. While not all manufacturers are willing to work under Apple's terms, there are many suppliers who are willing and able to comply with Apple's code of conduct without compromising their competitive advantages.
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