Your assignment is to prepare and submit a paper on the networked supply chain concept implemented by cisco. Study the networked supply chain concept as implemented by Cisco. What are its strength and weaknesses? The California based network giant, Cisco Systems, Inc was founded in 1984 by the scientist of Stanford University. The founder Len Bosack and Sandy Lerner along with Richard Troiano designed an operating system for routing data from one computer to another through the operating system called IOS (Internet Operating System) (Cisco-a). This successful venture of Cisco in the world of the network made Cisco the giant for the next two decades. Headquartered at San Jose, California the company started operating through a customer support site in the year 1985. Then the company implemented the online service strategy through which the customers are able to download software and can update them instantly by downloading the updates from the site. With a massive increase in the number of calls in the support center from 3000 calls in the year 1991 to 12,000 calls in the year 1992, the company successfully implemented its strategy and increased sales to great extent and dealt with a large number of transactions through customer support on its website. In the following year in 1993, Cisco implemented a new strategy to reach out to the global market and grabs the multinational customers through its new Internet-based system for the customers. This Internet-based support gave clients of Cisco the ability to post their queries in the portal which is directly reviewed by the company. With the success of the Customers Support Site the company launched the Cisco Information Online service in the year 1994 for its customer. The customers are now able to view the products available from Cisco and also they can avail the technical support service and customer support from the online portal. In 1995 the company also added their products and services on the site to sell to their customers through an application provided on the site which helped the customers to directly buy products or services from their website. The main concept behind this was to eliminate the ideas of paperwork, fax, CD-ROM and various other materials for training directly to the web which can be accessed by the clients at any point in time from any parts of the world. This gave the company the opportunity to reduce costs from its employees, trade partners and reduce the time for transactions and also increases the market reach at the same time. Farther in the year 1996 Cisco implemented the Networked Strategy for a more interactive approach towards the clients’ relationships. They implemented a new supply chain network which consists of Cisco employees, trade partners, manufacturers, suppliers, and distributors. The orders from the clients are stored in the databases which are accessible by all the members of the company and it is directly connected to the Enterprise Resource Planning system of the company for easy handling of the stocks and the fast transaction for the customers. For an easy and on-time delivery system, the company involved the third party logistics recourses into the system. The logistic providers access the order in the database via the internet and can view the status of the order processing information. This direct fulfillment system increased the revenue of the company to a great extent and the company is able to save around $12 million annually with this new strategy implementation. .
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