Cisco Systems: The Supply Chain Story
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : ITSY001
Case Length : 08 Pages
Period : 1984-2002
Pub Date : 2002
Teaching Note : Available
Organization : Cisco Systems
Industry : Computer Networking
Countries : USA
To download Cisco Systems: The Supply Chain Story case study
(Case Code: ITSY001) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra » IT & Systems Case Studies Collection
» IT and Systems Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company 
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
Excerpts
The CCO & ICS Initiatives
|
In order to address the above problems, Cisco revamped its
supply chain management to reduce the long ordering cycles. The company launched
Cisco Connection Online (CCO), which connected Cisco with all its suppliers and
contract manufacturers online.
As a result, when a customer placed an order, it was instantly communicated to
all its suppliers and manufacturers. In most cases, a third party logistics
company shipped the product to the customer.
CCO ensured increased co-ordination and connectivity between supply partners,
thus reducing the operating costs of all constituents. |
|
Automated processes within the supply chain removed redundant steps and added
efficiencies. For instance, changes in market demand were communicated
automatically throughout the supply chain. This enabled the networked supply
chain suppliers to respond appropriately. CCO reduced payment cycles for
suppliers and eliminated paper based purchasing. As a result, suppliers
agreed to charge lower product markups...
|
|
The Problem and the Remedy
Analysts felt that the flaws in Cisco's systems had
contributed significantly to the breakdown. During the late 1990s, Cisco
had become famous for 'being the hardware maker that did not make
hardware.' Its products were manufactured only by contract manufacturers
and the company shipped fully assembled machines directly from the
factory to buyers.
This arrangement led to major troubles later on. According to analysts,
Cisco's supply chain was structured like a pyramid, with the company at
the central point... |
Exhibits
Exhibit I: Cisco - Income Statements
|
|
