PGN21C Global Supply Chain : The Cisco Systems
Questions:
1.Study the networked supply chain concept as implemented by Cisco. What are its strengths and weaknesses?
Answers:
Strength of Network Supply Chain
The order placements was quick which took only 15minutes for the contract manufacturers to start the order. By this the order fulfilment was made efficient.
Weakness of the Network Supply Chain
Transactions that was between the suppliers of the company and the manufacturers of the contract was not good. Because of this problem, there occurred a delayed delivery to the customers. They lost their customers because of their internal conflicts (Case 24 - Cisco Systems: Supply Chain Story, 2017).
Financial Trouble
The financial trouble caused for the Cisco Systems was because of their system only. They have a pyramid like structure in their supply chain in which the company is at the central point. The Cisco has given its main delivery system to their manufacturers. The contract manufacturers depend on large companies and those companies are dependent on the large suppliers (Flynn, Koufteros and Lu, 2016). So the miss communication between these tiers were major cause for the trouble.
Problems in Cisco System
The problems that were associated with the systems of Cisco, Delayed delivery to the customers. The communication and the relationship between the Suppliers and the contract manufacturers was not good which is the main cause for the problems in the Cisco (Case 24 - Cisco Systems: Supply Chain Story, 2017).
References
Case 24 - Cisco Systems: Supply Chain Story. (2017). .
Flynn, B., Koufteros, X. and Lu, G. (2016). On Theory in Supply Chain Uncertainty and its Implications for Supply Chain Integration. Journal of Supply Chain Management, 52(3), pp.3-27.
