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Solutions supposed to embrace the standardization of its

Solutions

There were several process and steps taken by
Cisco Company which aimed at solving its challenges in its supply chain. This
was after the company’s inventory cycle had changed from 53.9 days to 88.4 days
and the supply chain had shown signs of becoming unmanageable. The company’s
long-term contracts with suppliers were also on the check as it had caused it
to have inventory pile-ups (ABT Leads, 2016).  Therefore, crafting a
solution to these problems needed

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a quick response since other customers had even resulted in
ordering the same products from its competitors in order to close their deals
with the quick deliverers.

Since the traditional systems could not work
in solving the supply chain challenges, the company had to first change its
model and upgraded from a work order to a purchase order model as a way of
reducing the obsolescence of products as well as that of technology.
Furthermore, the company’s Enterprise Resource Planning (ERP) system was
upgraded to include new adaptive features such as the Out-of-the-box (OOTB)
functionality which would make it possible for the company to roll out the new
supply chain system.  Moreover, the implementation of the entire
intervention was aimed at enhancing the capabilities of the company as well as
widening its scope in the market through components such as Build to Stock
(BTS) which is a basic component in the establishment of a system and which
helps in encrypting and decrypting communications as well as doing the spectrum
filtering functions in a system.  (Laudon & Laudon, 2013).

The global design was one approach adopted by
Cisco Systems in order to solve its supply chain woes/ in this approach, the
supply chain was supposed to follow a global system and have a common process.
Further, the company was supposed to embrace the standardization of its supply
chain and focus on the adoption of best practices.  Moreover, the application
of localization which as a means of achieving the improved country enablement
strategy was critical as the company redirected purchases of goods to suppliers
who were within the same geographical area to a similar point which was close
to where these products were being needed.  To improve the organization’s
country enablement, the company came up with subsidiaries in particular
countries to make it possible for them to sell its products as well as provide
its services to different countries at competitive prices.  This also came
with the exploitation of the out-of-the-box (OOTB) functionality in localizing
its supply chain. Through this method, the company ensured that there was no
bloated lead-time and that the cost of supply chain relatively lower than
before (Cisco, 2017).

Another approach used by Cisco Systems Company
was the decommissioning of the company’s data center in San Jose such as the
Oracle 11i Enterprise Resource Planning which to ensure that the data had a
secure backup and minimize the risk of data loss. Moreover, the process of
Service Provider Video Technology Group (SPVTG) integration with inclusion to
the Scientific Atlanta was another solution adopted by Cisco Systems when doing
its supply chain adjustments. The functionality of Oracle R12 which was adopted
by the company would make it possible for the company to adopt the Base
Transceiver Station in a better way and in a supply chain system which would
include the Configure to Order (CTO) system. The Configure to Order system would
make it possible for products to be made-to-order and especially for the goods
whose configuration time was negligible.

Partner enablement was another critical
approach taken by Cisco Company in finding a solution to its supply chain
problems. Firstly, the company facilitated a proper change management to ensure
that the systems adopted to ensure partner enablement were effective and highly
attainable.  Change management is an organizational approach necessary in
ensuring that change is adopted well in an organization at the personal,
enterprise and organizational levels. At a personal level, training was crucial
in imparting skills on the systems to the employees. Furthermore, lane
enablement was facilitated through a properly planned program management to
ensure that the partner enablement was achieved. Also, Cisco ensured that
shipments were done at the correct time and that the Service Level Agreements
between the company and its customers were measured. Through the SLA
measurement, it was easier for the company to gauge its ability to satisfy
customers (Hua & Willems, 2016).

In addition to that, Cisco had learned the
importance of monitoring its performance levels in the supply chain as a way of
gathering the necessary data required in improving its operations. Further, the
monitoring was a critical step in promoting customer satisfaction as well as
providing management with the requisite information needed in making key supply
chain decisions. For instance, data generated through monitoring of the program
was critical in evaluating the effectiveness, efficiency, sustainability, and
relevance of the interventions carried out in the company’s supply chain.
Pre-built industry processes were another approach taken by the company to
salvage its supply chain. For instance, the application of some customized
business flows, as well as the use of templates and questionnaires, were highly
critical.  Moreover, Cisco Company found a solution in integrating all its
systems from the various departments and which in the long run helped the
company to integrate different products. E2open supply and planning response
solutions which apply the use of algorithms to give an evaluation of all the
current constraints and ensure that the highest priority customer orders are
met promptly. Additional, the Electronic Data Interchange EDI, which is a
computer to computer connection between the buyer’s internal system and that of
the supply in exchange of purchase orders and invoices provided better
solutions for the company as they offered an avenue for integrating the
company’s supply chain with that of its partners (Hua & Willems,
2016). 

In the new Cisco information, the flow of the
company’s supply chain begins, when a customer order goes to the Cisco
Enterprise Resource Planning system (ERP) database before linking through the intendant
to the Transmission Line Pulse (TLP) and through the (Virtue Private Network)
VPN to contract manufacturers. From there, the suppliers’ production schedule
is arrived at. Moreover, the company has also embraced outsourcing of
activities where things like production have been handed over to some
manufacturers on a contractual basis. Activities in assembly, as well as distribution
and product configuration, have also been outsourced from the company hence
reducing its weight and load in the supply chain (Lee, 2016).

 

 

 

 

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