Apple's Chinese supplier proves need for Supplier Relationship Management

This past month, Apple has released a statement claiming that they have halted any and all purchasing of cobalt from suppliers sourcing their materials from the Democratic Republic of Congo.

Democratic Republic of Congo (DRC) is a country with some of the most present mining of conflict minerals, and child labor presence. Cobalt is one of the minerals in question.

In the tech industry, cobalt is used for the production of high-powered and rechargeable batteries. It’s strength and ability to result in long-lasting battery production makes the use of cobalt in lithium batteries very attractive to producers and retailers looking to improve top-line value.

But at what cost?

Apple, a company concerned with supply chain transparency and supplier governance, has decided to stop purchasing products produced by, Zhejiang Huayou Cobalt Company, Congo's biggest cobalt buyer and an Apple supplier. This supplier (Zhejiang Huayou Cobalt Company), in particular, has been found to source products from sub-suppliers whom display harsh working conditions and use child labor as a means of production.

To remain transparent and keep their names as far away from the issue as possible, Apple has come out with a statement in the introduction of their 2016 report stating; “There's a right way to make products, […] it starts with the rights of the people who make them."

It’s clear that increased supplier governance and supply chain transparency with the aid of strong supplier relationship management is necessary in visible global supply chains.

Inspiration for article found HERE