Apple Strengthens Growing U.S. Supply Chain With ‘SupplierPay’ Pledge
In an unusual move for a company that is notoriously secretive when it comes to revealing details about its supply chain, Apple (NASDAQ:AAPL) recently touted its substantial investment in U.S.-based suppliers over the past year. Apple’s U.S. supply chain disclosure came on the heels of the company’s decision to join President Obama’s recently announced “SupplierPay” initiative. Soon after the White House’s announcement, Apple revealed how much money it already spends on U.S.-based suppliers in a statement given to TechCrunch. “Last year, Apple spent more than $3 billion with over 7,000 suppliers running small and diverse businesses, creating tens of thousands of U.S. jobs,” said Apple.
As noted in a statement released by the White House, SupplierPay is the private sector equivalent of the Federal Government’s QuickPay initiative. Like QuickPay, SupplierPay seeks to lower the working capital cost of small business suppliers by having large businesses like Apple pay small suppliers quickly. The initiative also encourages companies to enable financing solutions to help small suppliers access working capital at a lower cost. Apple, AT&T (NYSE:T), Coca-Cola (NYSE:KO), IBM (NYSE:IBM), and Toyota (NYSE:TM) were among the first twenty-six companies to adopt the SupplierPay pledge.
“For the larger companies, joining SupplierPay demonstrates a recognition that a healthy supply chain is good for business,” noted the White House in a press release. “For the small business suppliers, benefiting from SupplierPay means having more capital to invest in new opportunities, new equipment, and new hiring.”
Besides announcing the new SupplierPay initiative, the White House also highlighted several case studies of companies that have contributed to the growth of small suppliers in the U.S. One of the case studies highlighted by the White House was Apple’s relationship with Metal Impact, a small supplier based in Illinois. Metal Impact gets millions of dollars in revenue by supplying the Mac Pro’s cylindrical aluminum enclosure. As seen in the video above, Apple’s Mac Pro is assembled in a facility in Austin, Texas.