Apple's Supply Chain Secret

Re:Apple's Supply Chain Secret by AlexMuir on Friday November 04, 2011 @08:48AM (#3195819)

At this size, I don't really feel like it's an issue. Manufacturers for Apple will all employ financial analysts whose job is to price the 90-day payment terms into their prices. If you're going to pay me tomorrow, I'll quote you $1 a widget. If you're paying in 90-days it's $1.04 a widget.

Incidentally, I know a wholesaler [1] in London which sells at almost cost price. It makes most of its profits from sitting on the cash it takes for 60 days, before paying it to suppliers.

[1] http://www.dhamecha.com/

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Re:Apple's Supply Chain Secret by jmelloy on Friday November 04, 2011 @11:08AM (#3196310)

This is also one of the tricks Amazon uses to keep pricing low.

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Re:Apple's Supply Chain Secret by cbsmith on Sunday November 06, 2011 @04:27PM (#3203900)

My understanding is that this is most of Costco's profit model too: they take merchandise on consignment for say 60 days, sell it all at cost within a week, and then invest the float.

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Re:Apple's Supply Chain Secret by barredo on Friday November 04, 2011 @04:55PM (#3197667)

Big German retailer mediamarkt/Saturn does this. So does French Carrefour. 90/120 days I think

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