No One Read the Supply Risk Memo: Apple Takes Number on AMR's Top Supply Chain List

AMR Research recently published its Top 25 Supply Chains for 2007. In the number two position -- behind Nokia -- Apple took the prize. In its first year of eligibility for the list based on its newfound standing in the Global 200, Apple surprised AMR. According to the firm, "Apple's No. 2 ranking surprised many of us at AMR Research given Apple's decidedly mixed reputation for customer service, in-stock performance, and forecasting. Both opinion polls gave Apple solid support, but strong financials including spectacular inventory turns (50.8) and stellar growth (38.6%) shot the computer/iPod maker nearly to the top of our rankings." But will Apple be able to remain at this level for long? Given how Apple seems to count all of its supply risk eggs in one basket, who knows. A single supply disruption could cost it far more than its high-level ranking on AMR's list. And it doesn't take a genius bar to realize that if that happens, it would take far more than a few billion iTunes downloads to put it back on track.

Jason Busch

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