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How important is supply chain? Just ask Apple and Citi

By Steve Simmerman | 11/26/2012 | 3:22 PM

Supply chain topics continue to bubble to the top of the business world and here's even more proof:

The following is a quote from a story posted earlier today by John Melloy of CNBC on Yahoo - "How many analysts does it take to make a "buy" call on Apple (AAPL)? The answer, at least according to Citigroup (NYSE:C), is three. Three analysts will tag team the world's largest company with one covering the software side, another tackling the hardware side and yet another person evaluating its semiconductor supply chain, according to a note from the firm Monday."

The story continues to talk about the need to break Apple down because of the sheer magnitude of their operations.  The Citi spokesperson went on to say "This reflects Apple's broad impact to the technology supply chain and allows us to uniquely follow the company from several industry angles." Others view this announcement as a Citi marketing ploy.

Regardless of whether it is a marketing ploy or a necessity, it will be interesting to watch the analysis unfold across Apple's technology supply chain and the impact it may or may not have on suppliers, retailers and end users. A few years ago very few stories in the news would even address supply chain issues, but this is yet another example of how critical supply chain issues are to companies, and not just Apple.  We are certainly in the midst of an extremely exciting industry and the global awareness of supply chain continues to increase.  It appears as though more than just UPS "loves logistics".

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About Steve Simmerman

Steve Simmerman

Steve Simmerman is a Senior Director with JDA. Simmerman has more than 25 years of experience in the supply chain industry including software, consulting and material handling. He has focused his efforts on working with clients to achieve high performance supply chain results through partnerships and creative solutions. He is a member of CSCMP, WERC, and MHIA and is a regular contributor to several industry publications and events. Simmerman holds his undergraduate and MBA degrees from The University of Notre Dame.



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