...Cisco Systems, Inc. Supply Chain Risk Management Chuck Munson with María Jesús Sáenz and Elena Revilla Vice President, Publisher: Tim Moore Associate Publisher and Director of Marketing: Amy Neidlinger Executive Editor: Jeanne Glasser Levine Operations Specialist: Jodi Kemper Managing Editor: Kristy Hart Senior Project Editor: Betsy Gratner Compositor: Nonie Ratcliff Manufacturing Buyer: Dan Uhrig © 2014 by Chuck Munson Published by Pearson Education, Inc. Publishing as FT Press Upper Saddle River, New Jersey 07458 FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, corpsales@pearsontechgroup.com. For sales outside the U.S., please contact International Sales at international@pearsoned.com. Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. ISBN-10: 0-13-375744-7 ISBN-13: 978-0-13-375744-6 Pearson Education LTD. Pearson Education Australia PTY, Limited. Pearson Education Singapore, Pte. Ltd. Pearson Education Asia, Ltd. Pearson Education Canada, Ltd. Pearson Educación de Mexico, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd. Reprinted from The Supply Chain Management Casebook (ISBN: 9780133367232)...
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...Cisco Systems, Inc. Supply Chain Risk Management Chuck Munson with María Jesús Sáenz and Elena Revilla Vice President, Publisher: Tim Moore Associate Publisher and Director of Marketing: Amy Neidlinger Executive Editor: Jeanne Glasser Levine Operations Specialist: Jodi Kemper Managing Editor: Kristy Hart Senior Project Editor: Betsy Gratner Compositor: Nonie Ratcliff Manufacturing Buyer: Dan Uhrig © 2014 by Chuck Munson Published by Pearson Education, Inc. Publishing as FT Press Upper Saddle River, New Jersey 07458 FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, corpsales@pearsontechgroup.com. For sales outside the U.S., please contact International Sales at international@pearsoned.com. Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. ISBN-10: 0-13-375744-7 ISBN-13: 978-0-13-375744-6 Pearson Education LTD. Pearson Education Australia PTY, Limited. Pearson Education Singapore, Pte. Ltd. Pearson Education Asia, Ltd. Pearson Education Canada, Ltd. Pearson Educación de Mexico, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd. Reprinted from The Supply Chain Management Casebook (ISBN: 9780133367232) by...
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...| Case Study on Cisco Systems, Inc | Continuous Assessment | Global Supply Chain Management | | | Table of Contents Table of Figures 3 Question 1. Using an appropriate operations framework outline the challenges/risks faced by Cisco in introducing a new product. 3 Question 2. What are the general operational / supply chain issues in using a Chinese supplier 6 Question 3. Identify and briefly explain the specific risks / rewards in selecting Foxconn as a key subcontractor. 9 Question 4. Recommend, detail and justify operational and supply chain strategies for Cisco. 11 Question 5. Research and reference Cisco's subsequent actions using publically available material and comment briefly 13 Appendices 16 Appendix A 16 Appendix B 17 Appendix C 18 References 20 Project Diary: 26 Table of Figures Figure 2.1 Chinese Traditional Values (Jin et al., 2013). 17 Figure 2.2 Global Rate, Labour and Freight (Kumar et al., 2009). 18 Figure 4.1 Competitive Advantages. (Christopher, M., & Peck, H, 2003)…………...….….....18 Question 1. Using an appropriate operations framework outline the challenges/risks faced by Cisco in introducing a new product. Erhun, Gonclaves and Hopman (2007) state that risk during new product introduction (NPI) process can stem from either an internal or external source, and more critically from either a supply or a demand prospective. The challenge for Cisco during the NPI phase is to utilise an operational framework...
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...Report On Cisco Systems Risk Strategies Submitted to, Amy vuong Submitted by, Marut shah Vishal Dave Manthan Shekhadia Keyur Patel Rudraksh Gaikwad Imran Siddique Mohammad Faisal Contents 1. Introduction ............................................................. 4 1. Executive summary .............................................. 4 2. Issue identification .................................................. 5 1. Challenge & Issues ............................................... 5 3. Alternatives & Options: .......................................... 6 4. Recommendations ................................................... 9 5. Implementation of strategies & results: .................. 9 6. Monitor & Control: ............................................... 10 7. Lessons Learned..... Error! Bookmark not defined. 1. Introduction Cisco, the global information and communication technology provider, has put in place a supply chain resiliency program that any company facing possible risk from supply chain disruption should study. Cisco's program for SCRM combines tools, policies, practices and management support into a comprehensive system that enables the company to truly understand and manage the risks associated with the supply of most of its products. Beginning with new product design and introduction, and continuing through to current product manufacturing and fulfillment, Cisco can predict potential risk points and work with members of its supply chain to manage...
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...2012 Cisco CSR Report < Previous View 2012 Cisco CSR Report Website How to Use This Report We Welcome Your Feedback C1 Supply Chain Overview Our Supply Chain Embedding Sustainability in Core Business Processes Partnering with Suppliers to Improve Performance and Build Capability Working with Industry Groups Watch the Video! Supply Chain We expect our suppliers to meet the same high standards on ethics, labor rights, health and safety, and the environment that we apply to our own people and operations. Cisco works closely with suppliers to manage these sustainability issues and improve their performance throughout the supply chain and at every stage of the lifecycle of our products. We look to use our relationships with our network of suppliers and peer companies to multiply the impact we can have on sustainability in the information and communications technology (ICT) supply chain. 2012 Cisco CSR Report < Previous View 2012 Cisco CSR Report Website How to Use This Report We Welcome Your Feedback C2 Supply Chain > Overview Our Supply Chain Embedding Sustainability in Core Business Processes Partnering with Suppliers to Improve Performance and Build Capability Working with Industry Groups Overview These first five pages give readers an overview of Cisco’s objectives, key challenges, progress, and performance with regard to Supply Chain. We have used this overview as part of our Executive Summary, which can be downloaded here. We...
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...Cisco Systems, Inc.: Collaboration on New Product Introduction Viking Project Cisco 1. What are the challenges and risks faced by technology companies in new product introduction? When an introducing new product there are several challenges and risks that technology companies face and must take into account before starting development. The technology industry is rapidly changing with new technology being developed and introduced every day. Therefore, time is of most importance and indeed a challenge that technology companies face. There were several examples of ´time to market pressure´ in the case of Cisco Systems Inc. While their new product took several years of development work they had a deadline they had to meet and launch the product extremely quickly, or else they faced the risk of losing market share. In these years of development, new product introduction can be very expensive where companies usually risk spending a lot of money and make large number of prototypes with little certainty that the product design will meet customer requirements. When the product finally enters the market, customers might already have a product that fulfills their needs or they might not even want such a product any longer since the industry is in constant change. Thus, a two-way street with customers is very important in a product´s development as mentioned in the case. Furthermore, in our globalized world today, technology companies also face the challenge of making a design that can...
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...CASE: GS-66 DATE: 06/05/09 CISCO SYSTEMS, INC.: COLLABORATING ON NEW PRODUCT INTRODUCTION On November 13, 2007, more than 100 employees of Cisco Systems, Inc. assembled in classic Cisco fashion: they dialed in from multiple locations around the world for an important meeting. The purpose of the gathering was to get the green light from senior management to manufacture a new high-end router that would make the giant networking company more competitive in an age of surging Internet traffic.1 The project’s code name, Viking, said it all. The router for broadband service providers would break ground in power and speed, reminiscent of the Norse warriors and explorers of Europe during the eighth to eleventh centuries. The meeting represented a culmination of several years of development work by a cross-functional, global team of Cisco specialists in engineering, manufacturing, marketing and other areas. Just months earlier, in mid-2007, Cisco overhauled the project by sharply boosting the router’s speed and capacity. This would allow the company to leapfrog competitors and offer a low-cost, powerful new router platform for the next 10 to 15 years. That day in November, the Viking team was seeking an “execution commit” from senior management in manufacturing. If it got the go-ahead, Cisco would be ready to commit the resources to launch the new product. But the Cisco team knew it faced many challenges. The Viking project would be one of the company’s most complex...
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...Cisco: Supply chain RISK MANAGEMENT PLAN VERSION 5 01/13/2014 TABLE OF CONTENTS 1. INTRODUCTION 1. Executive Summary 2. Purpose of the Risk Management Plan 2. Risk Management Procedure 1. What is a Risk? 1. Risk Identification 2. Risk Assessment 3. Risk Mitigation 4. Risk Monitoring 5. Risk Planning 2. Qualitative Risk Analysis 3. Quantitative Risk Analysis 4. Risk Reporting 3. Tools and Practices 4. Conclusion 1. Risk Contingency Planning 2. Processes to Address Immediate Unforeseen Risks 5. Risk Management Plan Approval 6. Appendix A: References 7. Appendix B: Key Terms INTRODUCTION 1 EXECUTIVE SUMMARY THIS RISK MANAGEMENT PLAN DOCUMENTS A PRESENTATION MADE AT YEILDMORE ON HOW CISCO MANAGES THE RISKS ASSOCIATED WITH SUPPLY CHAIN DISRUPTIONS. YEILDMORE ASSESSES CISCO'S SUPPLY CHAIN RESILIENCY PROGRAM AS ONE OF THE BETTER-EXECUTED PROGRAMS WE HAVE SEEN, AND RECOMMENDS OTHER CLIENTS STUDY IT TO UNDERSTAND HOW THEY MIGHT "DERISK" THEIR OWN SUPPLY CHAINS. THEY OFFER A PRODUCT-CENTRIC APPROACH WHICH PROVIDES MORE BUSINESS VALUE THAN AN INCIDENT-CENTRIC APPROACH TO RISK ASSESSMENT FOR MOST BUSINESSES. Cisco’s transparency is critical to both internal and external support for supply chain resiliency. Objective metrics contribute...
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...isco Systems: The Supply Chain Story Cisco Systems Inc. is a worldwide computer networking company based out of San Jose, California. From Cisco’s beginning they as a company aimed to connect all members of the supply chain. Cisco’s initial product was the router, which contained an operating software called Internet Operating System (IOS). This product launched Cisco as a company and led to their future goal of a completely integrated supply chain. The first integration, a customer support site, came a year after the router was launched and it allowed customers to download and upgrade software as well as technical support through e-mail. This support center continued to grow through the early nineties and was eventually replaced by a customer support system on their website. The customer support system was continually added to and by 1995 it included; company and product information, technical and customer support, and most importantly it introduced the ability to sell products and services online. Cisco’s main desire behind this system was to streamline the process of customer support and allow the information to more easily utilized. In 1996, Cisco implemented another Internet application called “Networked Strategy,” this introduced online order entry and allowed the information to flow through Cisco’s supply chain. The order information was sent to Cisco’s ERP system which in turn sent it out to the various suppliers and manufacturers, allowing for a very...
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...Case Study: Cisco Addresses Supply Chain Risk Management This Case Study documents a presentation made at Gartner's Security and Risk Management Summit conference in 2010 on how Cisco manages the risks associated with supply chain disruptions. Gartner assesses Cisco's supply chain resiliency program as one of the better-executed programs we have seen, and recommends other clients study it to understand how they might "derisk" their own supply chains. CISCO’S SUCCES in SCRM Cisco's program for SCRM combines tools, policies, practices and management support into a comprehensive system that enables the company to truly understand and manage the risks associated with the supply of most of its products. Cisco managed to predict potential risk and points and work with members of supply chain to manage and minimize risks connected with with enviroment full of uncertainty. THE „RESILIENCY CHALLENGE” Cisco's business model is complicated, relying extensively on outsourced manufacturing for more than 95% of the >12,000 products it delivers, most of which are configure-to-order. Cisco sells to a broad range of customers from the private and public sector, and as Cisco expands its presence in the consumer sector (with products such as the Linksys line), it is seeing a growing presence of make-to-stock products. The company's growth strategy includes being highly acquisitive. It has made more than 140 acquisitions since its founding and is presently making three to...
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...initiatives must be consistent with company strategy—goal organization and management provide stable benefits to a fast growing, fast moving company - Companies must retain functional organization structure to scale without sacrificing control during high levels of growth - Install resource planning systems that smoothen company processes (don’t mirror old inefficient practices) - “Global Networked Companies” experience higher productivity and profitability - Standardization of Internet business solutions across functional areas leads to increased competitive advantage and shareholder value More in-depth Summary I. Cisco Systems Architecture: ERP and Web-enabled IT a. Company vision i. Pioneer ”New World Network” where voice calls are free over the Internet ii. Cisco = “Internet experts: the Global Internet Company” b. Company background i. Founded by two Stanford scientists in 1984 / went public in 1990 ii. Dominates “Internetworking” Market iii. March 27, 2000, Cisco overtook Microsoft as most valuable business on earth (market cap of $531 billion) iv. Cisco core technologies 1. Began with routers (what make the computer work) 2. Now challenging world of three independent proprietary networks 1. Phone networks (voice) 2. Local and wide area networks (data) ...
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...Part B+ Part C + Part D= Max 8 pages Part B (imp) Q. Cisco is committing to produce Viking at a single source Foxconn. Moreover, the Viking production mostly takes place within two-hour driving distance of the Hong Kong fulfillment center. “Cisco ran the risk of being overly dependent on a single supplier and whatever financial and operational constraints it had”. What are the potential risk factors in and around Hong Kong? Some risk factors are natural disasters (flood,tornado, earthquake), medical emergencies (bird flu or similar outbreaks that halt trade), accidents (fires), sabotage, political unrest. Can you add to this list? Discuss which of these adverse events are more likely. Suppose that a severe typhoon damages the infrastructure (power lines and bridges) in Hong Kong and Guang Zhou, and makes it useless for three months. What actions can Cisco take to satisfy customer needs for routers? Organize your thoughts/discussion/proposed plan in 2-3 items so that it can be briefly presented to executives in an executive summary. Answer Part C(Imp) 1. What are the challenges and risks faced by technology companies in new product introduction? Answer 2. What were the risks and benefits of using Chinese contract manufacturing from the start? Answer 3. In selecting Foxconn and expanding its role in the supply chain, what were the potential risks and values to Cisco? Answer 4. What should Cisco do to mitigate these risks and ensure successful development...
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...information systems problems referred to above, what other specific problems did you see in the case? Because their supply chain start have some problem, many of other problems were show up, customer service and merchandise shipments are going wrong. These problems will bring negative effect to their customers and company itself. Lots merchandise can not delivery on time, customer will loosing their trust and patient for Cisco.Company will make less profits than before because of the delay. Base on their new supply chain system CCO, Cisco were took care lots of their customers and cut off Cisco’s spend, but their idea just like a one way, Cisco put them into a very dangerous circumstance, which is they were not thought what would happened during next, even they try to use ICS to make up those customers who cannot use CCO system. Cisco use short version to look entire business, Cisco do not have a back up plan when technology changed. Cisco have Communication problems with their suppliers and partners, that will let Cisco spend more money to put on their inventory, even Cisco do not need those components, because they do not have a system to look over their inventory, they just projection about their usage from sales force. New system e-Hub did help Cisco figures some problem, but it takes long term. Time is very important for a global IT company, Cisco need to know there suppliers and partners idea right on time. Problem is Cisco start forecast their new system...
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...report on sustainability, it is estimated that almost 93% of the top 250 companies globally will do so (lecture notes, 2016). Where did sustainability begin? Sustainability first came into the public eye at a United Nations conference on the human environment, this was located in Stockholm Sweden in 1972 (Moore, 2014). Over 100 nations attended and agreed on an action plan for the human environment. Furthermore the real development of sustainability came at a UN conference in bas in Rio De Janeiro in 1992. It was here where 130 nations signed an agreement climate change, Biodiversity and an action plan called Agenda 21 (Cleveland, Kubiszewski, Miller, 2012). For my Essay, I intend to investigate the CSR of Cisco Systems Inc. According to the CEO of Cisco, Chuck Robbins, Cisco have been developing their Corporate Social Responsibility in many areas, highlighting education, healthcare, and specifically mentioning their recent progress with environmental goals. The companies motto states, “Connect Everything, Innovate Everywhere, and...
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...networked supply chain concept as implemented by Cisco. What are its strengths and weaknesses? Cisco Systems, Inc. is an IT company that specializes in the selling of networking and communication products and services. It is a B2B company where they sell its products primarily to large enterprises and telecommunications service providers, but it also markets products designed for small businesses and consumers such as routers, modems, and home network management software. The products and services aim to transport data, voice and video communication within buildings and campuses as well as around the globe. The services include routing, switching, home networking internet protocol telephony, optical networking, security, storage area networking, wireless technology, access, network management software and service. (Source from: Cisco Annual Report 2004) Cisco’s Strengths Cisco’s success in the network industry can be directly attributed to its ability to summon vision and action to continually sharpen its business model for long term success. In 1993, Cisco realised it future growth would put its current manufacturing capabilities. Difficulties to in scaling the all of its supply chain would limit its ability to grow profitably. The firm created a model for a global supply network where it outsourced it logistics and manufacturing creating a “single enterprise strategy” with supplier through information sharing. (Source from Cisco website: Supply Chain Management...
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