How Apple is adapting its operations to speed up deliveries
San Francisco — Apple is starting to use its network of retail stores as distribution centres for shipping products to consumers, joining a trend popularised by other retailers.
The Cupertino, California-based technology company has typically shipped devices such as iPhones, Macs, iPads and accessories from warehouses located across a customer’s region or directly from China. Now items that are in stock can be shipped directly to consumers from a network of almost 300 retail stores spread across the US and Canada, according to people familiar with the matter.
Apple told staff the shift will mean faster delivery times for customers who live further from distribution centres than from stores, according to the people who asked not to be identified discussing internal policies.
The products will be shipped through United Parcel Service in Canada and FedEx in the US via ground shipping and may be delivered as early as the day after a customer’s order, Apple told its staff. The programme will apply to customers who live within 160km from a store, the people said.
The change in delivery operations at Apple retail locations comes as the company prepares to launch a slew of new products soon, including four new 5G iPhones, a new iPad Air, over-ear headphones, a smaller HomePod and the first Macs with Apple’s own processors.
Apple started testing the programme with a small number of stores after locations started reopening from Covid-19-related closures in June and July. It has rolled out to more, but not all retail sites across the US and Canada, the people said. An Apple spokesperson declined to comment.
The move to shipping from stores has been popularised by some grocery stores in recent years and has expanded to other retailers. The practice reduces costs, potentially improving product margins, and is beneficial to the environment, Apple told its staff.
Customers will not be able to choose to have their orders shipped from a store nor will they be aware when it happens. The decision on where to ship an item from is decided by Apple’s operations team, the people said.
The shift in delivery operations ensures that stores that remain shuttered or limited due to Covid-19 restrictions can still operate in a way that assists Apple in selling devices. The company also has discussed converting select stores into online support or sales call centres in the event that locations need to be closed again due to the pandemic. Some back rooms at stores have already started serving as small call centres.
For months, some retail employees have been working from home as online sales and support staff.
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