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impactlab_2012 00596.txt

#Apple turns over its entire inventory once every 5 days Apple s supply chain is ranked best in the world. Apple s supply chain is ranked best in the world by the technology research firm Gartner. According to a new report by Gartner. part of the reason is Apple turns over its inventory once every five days. If you think about that s pretty amazing. Apple ells hundreds of millions of hardware gadgets all over the world and yet it doesn need t actually to stockpile its goods. The only company on Gartner s list of 25 companies that turns over its product faster is Mcdonald s which is not exactly in the electronics business. Dell and Samsung rank two and three in Apple s category, turning over their inventory roughly once every 10 and 21 days respectively. We calculated these times from the report s Inventory Turn#metric, which estimates the number of times a company s inventory is sold in a given time period. Apple s number is 74, according to Gartner (or 76, according to Forbes). From there, it s a common practice to divide by 365 to estimate the number of days of sales sitting in inventory.##Fascinatingly, if you read about that inventory turn metric, you will find things like this: Although results vary by industry, typical manufacturing companies may have 6-8 inventory turns per year. High volume/low margin companies (like grocery stores) may have 12 or more inventory turns per year or more.##So a typical company in manufacturing might do 8 inventory turns. Samsung does 17. Dell, which practically invented hardcore electronics supply chain management, does 36. Apple is doing 74! Photo credit: Business Insider Via The Atlantic Share Thissubscribedel. icio. usfacebookredditstumbleupontechnorati U

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