How Cisco transformed its supply chain (2024)

The Cisco supply chain is highly diverse, extensive, and global. With more than 300 product families, Cisco has a wide range of gear targeted at a spectrum of customers with vastly different expectations and fulfillment requirements.

Most Cisco products use a configure-to-order (CTO) production model. Products are built based on confirmed customer orders. A large percentage of Cisco growth comes through acquisitions, and they bring their own supply chain requirements and processes that need to be integrated into Cisco core operations.

Like many large enterprises in today’s fiercely competitive climate, Cisco looked toward optimizing its supply chain to increase business scale and agility. Throughout the planning and execution, supply chain stakeholders and Cisco IT kept a laser focus on business requirements and the capabilities needed to support them.

It simplified and consolidated supply chain business processes and its ERP system, and created a standardized, automated, end-to-end workflow. Today, 85 percent of the US$43 billion Cisco revenue is captured on the new platform. The transformation has enabled:

●Nimble expansion into new and emerging markets

●Shorter time to market for new products and offers

●Rapid acquisition integration

●Freight savings

●Intelligent scheduling

●Improved customer and partner experience.

Jun Kim, APJC Supply Chain and Manufacturing Operations VP at Cisco will attend Manufacturing Supply Chain Officer Summit as a keynote speaker and share how Cisco is harnessing the power of digitization. The summit will be staged in Singapore on 08 June 2017.

Find further information at: http://manufacturing.sco-summit.com/2017/index.php

How Cisco transformed its supply chain (2024)

FAQs

Why is Cisco supply chain so good? ›

The Cisco supply chain is highly diverse, extensive, and global. With more than 300 product families, Cisco has a wide range of gear targeted at a spectrum of customers with vastly different expectations and fulfillment requirements. Most Cisco products use a configure-to-order (CTO) production model.

How does it transform a supply chain? ›

Supply chain transformation is the addition and integration of technology to improve supply chain performance. Although the term can extend to any overhaul of supply chain management (SCM) practices and processes, it is typically linked to the digitization of supply chains, specifically.

How technology has changed supply chain explain? ›

Because technology and automation for the supply chain utilize real or near real-time data, companies have greater visibility and can track activities better. This helps improve collaboration and communication with key vendors and reduces cost through better vendor contract management.

Can Cisco's supply chain risk management strategy be generalized for any supply chain? ›

The current approach of managing the supply chain risk can be rather generalized. The reason for this recommendation is simple; the current approach has the critical modes. It also has clusters which help in devising the strategy effectively.

What makes Cisco so successful? ›

Cisco was the very first company to provide routers that could handle several internet protocols. Their early devices were also distinguished by their traditional CPU architecture. Their technology was cutting-edge, and hardware was rarely an issue. Cisco isn't a household brand, but it is well-known.

Why is Cisco better than its competitors? ›

Sources of CISCO's Competitive advantage

The other source of competitive edge is the fact that t CISCO uses advanced technology in development of its products the result is that the products become cheaper as compared to competitor which give the company a very strong competitive edge.

What is the importance of transformation in supply chain management? ›

Supply chain transformation is important because it improves margins and reduces the cost of goods. It provides end-to-end visibility of the supply chain, thus helping identify risks and mitigate them. It provides actionable insights and supports collaboration with all stakeholders.

What are the 5 key areas supply chain digital transformation impacts? ›

The five business areas examined in the survey were products and services, marketing and distribution channels, processes, supply chains, and new entrants at the ecosystem level.

How technology has improved supply chain management? ›

Blockchain, 5G, IoT and cloud computing allow vendors at every level to respond to needs in real time, assisted by greater automation in smart warehouses, robots and "cobots," which are robots that work alongside humans in workspaces such as production floors.

What is an example of how technology affects supply? ›

Technological advances that improve production efficiency will shift a supply curve to the right. The cost of production goes down, and consumers will demand more of the product at lower prices. Computers, televisions and photographic equipment are good examples of the effects of technology on a supply curve.

How are new digital technologies transforming the management of modern supply chains? ›

Digital technologies will help companies collect, analyze, integrate, and interpret high- quality, up-to-date data. This data will be used to build automation, forecasting, and robotics-all innovations that will replace traditional supply chain management.

What are the 4 different supply chain management strategies? ›

Integration, operations, purchasing and distribution are the four elements of the supply chain that work together to establish a path to competition that is both cost-effective and competitive.

What are the three 3 components that needs to be manage in supply chains? ›

Generally the key aspects of Supply Chain management are Purchasing (sourcing), Planning (scheduling) and Logistics (delivery). Sometimes logistics is separate, and procurement may be included with Purchasing, depending upon how location specific the procurement activities are.

What are 3 common supply chain risks? ›

Most of the risks that could disrupt your operations fall into four broad categories: economic, environmental, political and ethical.

What are the top 3 things you know about Cisco? ›

Cisco provides IT products and services across five major technology areas: Networking (including Ethernet, optical, wireless and mobility), Security, Collaboration (including voice, video, and data), Data Center, and the Internet of Things.

What is Cisco success plan? ›

Success Programs are a targeted adoption motion focused on a particular solution to ensure eligible customers realize the value of their investment with Cisco. Digital engagement is the foundation of the programmatic approach. The Lifecycle Digital Journey provides an “always on” engagement with customers.

What is the advantage of Cisco? ›

Cisco helps enterprises connect and monitor devices, secure and automate operations, and compute and manage data.

What is a weakness of Cisco? ›

How did things get this bad? There are three key factors, three big weaknesses in Cisco's operations: over-ambition, distraction and mismanagement.

Why Is Cisco a sustainable company? ›

The Science Based Targets initiative (SBTi) has approved Cisco's goal of achieving net zero emissions by 2040 across its value chain. To do this, the company has reduced its Scope 1 and 2 GHG emissions by 39% compared to its fiscal year 2019 base year.

How has Cisco changed the world? ›

Cisco TacOps has provided aid in several major disasters, including Puerto Rico in 2017, the Syrian refugee crisis from 2015-2017, and Hurricane Katrina in 2005. 2010: Partnership with Water for People — The goal of Water for People is to provide safe water and sanitation for four million people in nine countries.

What are the main components required for supply chain transformation? ›

The Top-level of this model has five different processes which are also known as components of Supply Chain Management – Plan, Source, Make, Deliver and Return.

What is transformation and why is it important? ›

TRANSFORMATION is the realignment of an institution's structures, culture, and business model to create a student experience that results in dramatic and equitable increases in outcomes and educational Value.

What is the purpose of the transformation process? ›

A transformation process is any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides outputs for customers or clients.

What is an example of digital transformation in supply chain? ›

End-to-End Customer engagement: Digital transformation in supply chain management will increase customer engagement in his journey. For example, after placing an order, a customer will stay updated with his order details until receiving it with the help of the supplier's automated tracking system.

How does Blockchain technology improve supply chain operation? ›

Blockchain makes global supply chains more efficient by allowing companies to complete transactions directly and without third parties. It also facilitates increased integration of financial and logistics services, enabling greater data collaboration between stakeholders.

How technologies will change supply chain in the future? ›

This technology will improve efficiency, flexibility, and the automation of distribution networks. Industry 4.0, when implemented widely, will eliminate needless production costs, improve the logistics of products/services, reduce cycle times, increase throughput, and improve quality.

How does Blockchain technology improve supply chain contract management? ›

Blockchain helps organizations understand their supply chain and engage consumers with real, verifiable, and immutable data. Transparency builds trust by capturing key data points, such as certifications and claims, and then provides open access to this data publicly.

How important is technology in supply chain? ›

The use of technology can establish the necessary transparency in the whole process. It allows manufacturing companies to have better control over product flow and information flow across the supply chain management.

What is a real world example of change in supply? ›

For example, if a new technology reduces the cost of gaming console production for manufacturers, according to the law of supply the output of consoles will increase. With more output in the market, the price of consoles is likely to fall, creating greater demand in the marketplace and higher overall sales of consoles.

What are the 4 effective application of digital technology for supply chain management? ›

For companies with goods to move, there are several technologies that bear watching and four that every party in the supply chain should be testing at some level. These four are the BIRD technologies – blockchain, the internet of things (IoT), robotic process automation (RPA) and data science.

How Digitalization makes the supply chain more efficient? ›

By bringing real-time visibility throughout your supply chain, digitization allows you to minimize lead times and improve supply chain velocity. For instance, integrating your fulfillment software with your ecommerce store allows you to automatically receive orders and get them ready for fulfillment.

What is the best supply chain strategy? ›

“The single most effective way to create a winning supply chain strategy is to focus on resilience…” Find the best supplier for your product or service, then before your hire them, check their business continuity plan. Ensure they can continue to serve you through a disruption.

What are the 5 R's of supply chain management? ›

When items in the supply chain travel in reverse order, your organization has to figure out a way to handle those products. The five Rs of reverse logistics are returns, reselling, repairs, replacements, and recycling. The processes and solutions you apply to each of these can help your business improve its results.

What are the 7 supply chain functions? ›

Supply Chain includes purchasing, manufacturing, warehousing, transportation, customer service, demand planning, supply planning and Supply Chain management.

What are the 6 drivers of supply chain performance? ›

The whole study concluded that there are six drivers of supply chain performance that need to be managed to enhance organizational performance and output. These drivers are; Facilities, Inventory, Transportation, Information, Sourcing and pricing.

Is Cisco systems a supply chain company? ›

Who we are. Cisco's Supply Chain University Program works on real projects that have a measurable impact. We touch on every part of the business from product design to final shipment to the customer and everything in between.

How many years in a row has Cisco been ranked #1 in supply chain Excellence by Gartner? ›

Cisco Systems scored the top spot for the third consecutive year, followed by Schneider Electric, Colgate-Palmolive, Johnson & Johnson, and PepsiCo.

What is an example of a successful supply chain? ›

Amazon has an incredible supply chain which ships over 10 million different products, as well as operating a Marketplace system too. Their supply chain methods utilise the lowest levels of inventory possible yet with delivering with incredible speed.

What is Cisco's sustainability goal? ›

Goal: Reach net-zero GHG emissions for Scopes 1, 2, and 3 by 2040 by 90%3 (FY19 base year). This goal was announced in September 2021 as part of Cisco's net-zero commitment.

Why are employees leaving Cisco? ›

These higher quotas are causing people to pack up and leave Cisco, particularly those in enterprise sales, who are tasked with closing the biggest deals at the company. At least 12 people from that division have left in the last year, according to their LinkedIn pages.

How many suppliers does Cisco have? ›

We spend billions of dollars each year with the more than 600 suppliers that manage our manufacturing and logistics and provide over 80,000 different parts to make Cisco's core portfolio of products.

What is Cisco Systems famous for? ›

Cisco Systems, American technology company, operating worldwide, that is best known for its computer networking products.

Who does Cisco supply? ›

Amphenol ● Artesyn Embedded Power ● Bel Fuse ● Broadcom ● Delta ● Delta Electronics Inc. Fabrinet ● Flex ● Foxconn ● Gold Circuits ● Hynix Semiconductor ● II-VI Photonics ● Innolight Technology ● Intel ● ISU Petasys Co. Jabil ● KIOXIA America, Inc. Lite-On ● Marvell Semiconductor ● Microchip Technology Inc.

Which is the best supply chain management in the world? ›

10 Best Masters in Supply Chain Management

According to the 2023 QS Masters in Supply Chain Management ranking, MIT's Centre for Transportation and Logistics has the world's top program for the third year running.

How successful is Cisco? ›

Cisco Systems (CSCO) is one of the world's leading information technology and networking companies. As of June 2020, Cisco had a market cap of $194.94 billion and was the largest company in the networking and communications devices industry.

Was Cisco the most valuable company in the world? ›

By the time the company went public in 1990, Cisco had a market capitalization of $224 million; by the end of the dot-com bubble in the year 2000, this had increased to $500 billion, surpassing Microsoft as the world's most valuable company. As of December 2021, Cisco had a market capitalization of around $267 billion.

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