According to the book "Steve Jobs" by Walter Isaacson, Steve Jobs returned to Apple in 1997. At that time, Apple's supply chain was an absolute mess! The company held $500 million of inventory which was about 2 months coverage, much more than those of the other technology companies. Jobs also run the day-to-day operations, which resulted in the relationship problems with key vendors and third party logistics providers.
Steve Jobs met Tim Cook
In 1998, Steve Jobs invited Tim Cook for the interview while Cook was working as a procurement and supply chain leader at another company. Jobs explained to Cook that he wanted to implement just-in-time system the same way Michael Dell did at Dell. Cook shared the same vision with Jobs and later decided to join Apple.
What Tim Cook Actually Did
Cook realized that Apple's supply chain was too complex to handle. So he reduced number of key suppliers, from 100 down to 24. Cook also asked them to consider the price discount and relocate closer to Apple's factory.
Cook reduced number of warehouses, from 19 to 9 and slashed inventory level from 2 months to 1 month. By September of 1998, inventory level was down to 6 days. He also reduced the manufacturing cycle time, from 4 months down to 2 months.
Within the first 2 years, Tim Cook simplified Apple' supply chain a big time and this generated the huge cost savings and improve service drastically.
There are 7 traits of leadership that makes Tim Cook stood out in the eye Steve Jobs. More information can be found as below,
As you may know, Jobs was a big fan of F words! However, Cook had a very different perspective.
"What I learned about Steve was that people mistook some of his comments as ranting or negativism, but it was really just the way he showed passion. So that’s how I processed it, and I never took issues personally"
So Cook is a kind of person who tries to understand another people first.
2. Put first thing first
In order to achieve quick result, Cook worked very hard. He was up at 4.30am, went to Gym and was ready at his desk around 6am. He arranged a Sunday meeting so he could prepare what to do for a week to come. He always prioritize his tasks efficiently.
3. Be proactive
When Cook was reported about a problem with one of Apple's suppliers in China, he said to his staff that, "Someone should be in China driving this". Thirty minutes later, one of his staff was still in the office, then, he asked "Why are you still here?" His staff then drove directly to the airport and bough a ticket to China. Cook chose to fix the situation quickly rather than letting it slide.
4. Avoid analysis paralysis
Cook got an undergraduate degree in industrial engineering from Auburn University and an MBA degree from Duke University. Without a doubt, he got a very good analytical skill. However, there were times that he relied on gut feeling or intuition (especially when situation is complex and choices are equally good/bad).
5. Keep calm
Jobs and Cook is like the Yin and Yang. It's Cook's calm demeanor that counteracted Jobs' control freak style of management.
6. Be humble
Some people just know Cook after he became the CEO because Jobs seemed to take the credit for Apple's success. However ever, Cook said,
"Some people resent the fact that Steve gets credit for everything, but I’ve never given a rat’s ass about that. Frankly speaking, I’d prefer my name never be in the Paper."
7. Be honest and learn from mistakes
When Apple Map app didn't meet the customer's expectation, Cook apologized for the mistake and recruited the armies of GIS specialists to improve the app.
Tim Cook has set the new standard for supply chain practitioners to follow. Are we committed to bring the positive change to the scm community?