Logistics Liability As Good Marketing

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INDUSTRIAL ENGINEER – VOLUME 47, NUMBER 6

The struggle to meet demand actually enhances reputation of high-tech devices
April’s launch of the Apple Watch, like launches of other buzzy gadgets brought rumors of 1 million preorders in the U.S. alone, along with news that the company was pushing estimated delivery times into June, according to the U.K. Telegraph.

But this supply chain strain has become the new norm when all eyes are on the latest high-tech devices. In fact, Roy Williams, managing director of Vendigital supply chain and procurement specialists, wrote, “The struggle to meet demand is regarded as an endorsement of a product’s popularity. In fact, from a reputational perspective, a stock surplus would probably be more damaging to the company’s brand than a supply shortage.”

The company likely is enjoying the attention that its success has afforded, according to Williams, and rumors of potential scarcity only add a sense of value to the product. And, despite reports of how hard it will be for the supply chain to meet demand, Apple likely has taken the proper steps and spread the risk across multiple suppliers.