Principles of Supply Chain Management
January 21, 2013
Cisco Systems: The Supply Chain Story
1. Study the networked supply chain concept as implemented by Cisco. What are its strengths and weaknesses? Strengths
•Cisco’s core competency was product designing and delegated t manufacturing, assembly, product configuration, and distribution to its partners. •Cisco has a very robust customer support network. It started small in the 1980’s and they increased it too support and facilitate a growing worldwide customer base. •Cisco was very proficient at utilizing the internet, intranets and extranets to share information and link customers, manufactures and suppliers. oThrough their “Networked Strategy” they ensured customers orders flowed through the entire supply chain. Suppliers could receive orders and begin working on them within 15 minutes of the customer order. oInternet linked supply network also resulted in automatic testing and QA worldwide VIA 700 servers. oCisco’s information sharing led to, shorter engineering-to-production cycle times, flexibility in designing, revamping, and retiring products and product quality, though outsourcing. oCisco linked transaction facilities to their Enterprise Resource Planning system (ERP) which gave them increased number of transactions VIA internet. oCisco launched Cisco Connection Online (CCO) which connected them with all their suppliers and manufactures and third part logistics providers. This reduced operation cost for everyone. It also increased communication which in turn reduced redundancies. CCO also reduced payment cycles which led to product markups. It led to better inventory management which cut inventory in half. Cisco utilized Integrated Commerce Solutions for customers who were not able to utilize CCO. This still gave them the information exchange. •Before 2001 Cisco...