Cisco Systems Case Study

Topics: Manufacturing, Supply chain management, Supply chain Pages: 4 (1101 words) Published: April 8, 2015
1. The two main focuses for Cisco, specifically related to the Viking, were offering the lowest possible cost in combination with innovative, high-end technological advancements. Cisco believed they would be capable of achieving these goals by outsourcing manufacturing processes to partners who would take responsibility for components planning and procurement, order scheduling, designing manufacturing processes, and overall supply chain management. Cisco would be freed up to add value by focusing on product design and development while the manufacturing would be taken care of.

Cisco was able to drastically cut costs by reducing their number of contract manufacturers and vendors in its extended supply network. This made it less costly and simpler to manage suppliers which resulted in major cost saving on components. Cisco also utilized information networks to collaborate with customers, contract manufacturers, and suppliers in the areas of demand management/planning, product quality improvement, and lean manufacturing.

In 2006, Cisco took their cost focus further by implementing a manufacturing model called Cisco Lean. This process was intended to boost efficiency and flexibility. Cisco Lean was a ‘pull model’ which means the product is not built until the customer has places the order. This reduced Cisco’s inventory, increased predictability in lead times and on-time shipments, and simplified their processes.

2. Cisco manages to mitigate the conflicting objectives which arise from traditional supply chain management through integrated coordination efforts within Cisco, and with customers and supply chain partners. New product introduction requires technical expertise as well as effective management to understand the market, translate the market’s needs into a product, and bring the product to the market in a timely manner. Cisco manages to address these concerns through their NPI process which involves three major stages: strategy and planning,...
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