Cisco Systems

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3. Why is demand forecasting important for effective supply chain management? * Demand forecasting is important for effective supply chain management because it provides critical, accurate and timely demand information. It estimates the future demand and the basis for planning and sound business decisions. Demand forecasting helps to minimize the deviation between actual demand and the forecast and having accurate demand forecasts allows a supply chain to run smoothly. 4. Explain the impact of a mismatch in supply and demand. What strategies can companies adopt to influence demand? * A mismatch in supply and demand could result in excessive inventories and stockouts and loss of profits and goodwill. * CPFR

Cisco Systems: The Supply Chain Story
Discussion Questions
1. Study the networked supply chain concept as implemented by Cisco. What are its strengths and weaknesses?
* Some of the strengths of the networked supply chain concept implemented by Cisco are the efficient and effective implementation of the policies and tasks needed to keep everyone satisfied, customers, employees and management. This concept focused on the management processes involved in the production and distribution of their products. * Some of their weaknesses are that they lack the capabilities to implement the supply chain concept. Cisco wasted their money on the wrong advertising of products, product development, production and distribution and this caused them to they ended up bankrupt. 2. Analyze why Cisco landed in financial trouble in early 2001. Would you agree that Cisco’s problems were largely caused by inherent defects in the company’s systems? Or possibly was it just because they had failed to forecast a market downturn? Give reasons to justify your stand.

* Cisco landed in financial trouble partly due to the wrong marketing operations. They botched other things like inventory control, logistics, and purchase management. I agree that their problems...
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