Apple’s Response to COVID-19 Disruptions: Supply Chain Risk Analysis and Mitigation

Abstract

Apple Inc. is a U.S. multinational organization that designs, manufactures, and markets consumer electronic products. Apple also sells various software, services, peripherals, networking solutions, third-party digital content, and applications. The unprecedented COVID-19 pandemic event has posed significant challenges for supply chains globally. The actions taken to prevent the spread of the disease, in the form of multiple national lockdowns, led to a slow—or even temporarily stopped—flow of raw materials and finished goods, disrupting manufacturing as a result. These measures exposed supply chain vulnerabilities. This case elaborates on current and post-pandemic supply chain issues for Apple Inc. based on published reports and datasets (Thomson Reuters Apple Inc. Value Chain Dataset and World Development Indicators dataset from World Bank). Students, in the position of decision makers, are asked to analyze Apple Inc.’s existing supplier base, perform a risk analysis, and develop a risk management plan to minimize the impact of very low-probability risks, such as a pandemic, that have potentially very high impact.