SUPPLY CHAIN MANAGEMENT - CISCO SYSTEMS INC. Question 1 The key reason for the introduction of the ‘Networked Supply Chain’ concept in Cisco in 1996 has been the increase of the company’s transactions. Having to handle hundreds of customers’ queries on a daily basis the company needed to develop a framework for interacting with its customers globally…
Download file to see previous pages...
Customers were able to ask for technical help – online – anytime, a fact, which has been an important criterion for the improvement of the firm’s image in the market (Simchi-Levi, David, Kaminsky, Philip, Simchi-Levi, Edith, 2003). At the same time, the specific system supported the increase of the company’s profits; since the orders of customers could be processed quite rapidly the level of the company’s sales has been significantly increased, a fact which is reflected in the firm’s financial statements in the years that followed the establishment of the Networked Supply Chain strategy. Indeed, in 1995, i.e. before the introduction of the particular strategy, the firm’s profits were estimated to $2 billion. In 1998, i.e. in just three years from the above system’s implementation, the firm’s profits reached the $9 billion, which is a significant increase. Apart from the financial benefits of the particular framework, its ability to create a dynamic relationship between customers and suppliers should be also highlighted. More specifically, through the particular system, suppliers were notified of each new order, a fact that allowed the suppliers to start building the product ordered immediately after the order was placed. In this way, the delivery of the order to the customer on time, one of the firm’s main targets, was ensured. In addition, customers could choose the exact form/ material of their product; also, they could monitor the progress of their order at any time. The products ordered through the particular scheme were of high quality, having been chosen by the customers and be available for testing online. The ‘direct fulfillment’ scheme that the company used, focusing on the issues discussed above, led to the limitation of the operational costs of the organization at about ‘$12 million annually’ (page 2, case study). In other words, the firm’s Networked Strategy offered the chance for improving the quality of customer service, for reducing the time for handling orders and for controlling the organizational costs. Despite its benefits, as analyzed above, the Networked Strategy of Cisco had also a series of problems to face. At a first level, the forecast of demand was not always easy – referring to the firm’s partners. Because of the lack of effective communication between the firm’s suppliers and manufacturers, the process and the delivery of orders often had to face significant delays. Networking offered the chance for direct control over existing orders, but because of the system’s inefficiency this control often required a lot of time – at least much more time than that estimated from the system’s developers. In this context, the time between the delivery of the order and its payment was significant, leading to the delay in paying suppliers. Due to this problem, the response of suppliers to the orders of the firm’s customers became problematic. In this context, in 2000 the firm had to face the following problem: the shortage many of the components used for the manufacturing of its products (case study, p.3). As a result, the time required for the delivery of ordered products was increased. Delays that reached the 15 days became a common phenomenon. The specific fact severely affected the firm’s image, a firm which was known for the high level of its customer
...Download file to see next pagesRead More
Cite this document
(“SUPPLY CHAIN MANAGEMENT Essay Example | Topics and Well Written Essays - 2250 words”, n.d.)
Retrieved from https://studentshare.org/music/1428186-supply-chain-management
(SUPPLY CHAIN MANAGEMENT Essay Example | Topics and Well Written Essays - 2250 Words)
“SUPPLY CHAIN MANAGEMENT Essay Example | Topics and Well Written Essays - 2250 Words”, n.d. https://studentshare.org/music/1428186-supply-chain-management.
Better collaboration in turn means greater communication. When firms communicate effectively (even in diverse geographical parts with different cultural backgrounds) and given that these firms are customer –focused, then knowledge on the customer value is created.
Now the business firms are not competing individually in the markets rather they are the part and parcel of different supply chain links. The only way in order to succeed in the market is that the business managers must have the ability to link different business networks or supply chain links in an effective and efficient way.
Organizations have come up with various innovative methods in all these process, which not only provide good SCM but also add value to their businesses as well as the environment including their suppliers, society as well as economy. Supply chain strategy is critical to its sustainability.
By 1990s, it became one of the most well-liked management term (Hugos, 2006). A supply chain can be seen as the alignment of three or more firms that are directly linked by the downstream as well as upstream flows of goods, services, information and finances from a particular source to the customers.
The author states that the concept of ethics in supply chain management was activated when BBC Panorama exposed the unethical supply chains of sports and clothing companies such as Nike and Gap. These companies hired under-aged Cambodians at minimum wages in order to keep down prices for the end users.
Green Supply Chain Management.
Although the concept of green supply chain is one of the most argued topics among industrial experts and research scholars but surprisingly very few researchers have tried to explore the topic seriously. To understand the core concepts of green supply chain management, one has to define supply chain management.
To bring the main actors in the market together, for example, suppliers, manufactures, and stores are put together to simplify the production of commodities being produced, and then circulated at the right time. The captions are going to capture the
It brings integration of various processes such as production operations, buying goods and services, transportation and distribution. A successful supply chain management programs ensures these processes are integrated and coordinated into a process that is seamless
The micro-economic approach in regard to market logistics and strategic plans of an organization is extensively discussed. The effective warehouse management and transport arrangements are basic market logistic constituents (Jespersen & Skjøtt-Larsen, 2005). It is
1 Pages(250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic SUPPLY CHAIN MANAGEMENT for FREE!