Sustainability Lessons from Apple’s iPhone Supply Chain

Apple Inc. announced on Friday that its latest white version 4 of the massively popular iPhone could be delayed up to 4-6months. Citing supply issues, The Wall street Journal reported that the technology giant may not be seeing eye-to-eye with suppliers.

Criticized earlier this year for product quality and now combined with this latest delay, Apple’s reputation may be taking a hit. Despite all of their innovative technology and superb marketing, the iPhone maker’s greatest sustainability risk may lie in the stability of its supply chain. This raises some interesting questions about the role business sustainability concepts play within the supply chain.

Progressive supply chain approaches over the past few decades have moved us beyond the traditional win/loose mentality to a more aligned mindset. Companies, for the most part, are reevaluating the long-term impacts of pushing cost, inventory, and other burdens back onto their suppliers to improve the appearance of company financials.

Many companies now strive to operate in a win/win framework with their supply stakeholders to establish a clear line of communication and a shared value proposition. Our sustainability consulting finds applied sustainability concepts within the supply chain can provide a common platform to keep the value conversation flowing.

Expanding beyond internal efforts alone, organizations are looking to replicate the same business sustainability successes in their external processes and business relationships.

•    Creating a common understanding of sustainability concepts, goals and objectives to provide a platform for supply chain discussion and continuous improvements.

•    Promoting greater eco awareness into production, transportation and inventory practices to drive efficiency, increase utilization of key assets, and stability of supply.

•    Defining standards for quality of supply and manner in which it is obtained.

•    Creating ethical standards by which all supply chain partners conduct business.

•    Addressing environmental and social impacts across the entire value chain.

As sustainability concepts begin to emerge within the supply chain, companies continue to push for win/win progress. The future of sustainable supply chain management may lie in increased eco awareness, cooperative business relationships, and aligned sustainability concepts across the entire value chain.