SolutionsThere 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 a quick response to prevent losing more customers who order the similar products from competitors in order to close deals with the company who provides the fastest deliverers. Since the traditional systems could not solve the challenges in supply management, the company had to first change its model and upgrade it from a work order to a purchase order model as a way of reducing the obsolescence of products as well as that of proper Information 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 that 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 with encrypting and decrypting communications as well as doing the spectrum filtering functions in a system. (Laudon & Laudon, 2013). Evidently, it was crucial for Cisco to make a major change to how Supply Chain and IT manages the business requirements and confirm that the capabilities needed are in place as well as assuring that the two components are working together simultaneously in order to shift from dysfunctional processes to attaining business results. To acquire this goal the company found that it would be most necessary for IT and Business to have a close relationship and work side by side to transform the supply chain.
The business-IT arrangement is reinforced by arranging cycles that take after a “lead with design” approach. Therefore, Cisco wanted to focus on the significance of adjusting Business and Innovation Designs, and use an undertaking engineering system that encourages this arrangement. The BOST reference-structure and approach from Proact Business Transformation Inc.
gave IT and business partners a common scientific classification, and sorts out between connected arranging models in light of four engineering perspectives of the undertaking: Business, Operations, Systems, and Technology. Applying BOST guaranteed that the abilities that IT conveys line up with business necessities. 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).