As part of the academic requirement of doing
an analysis on the implementation of supply chain systems in an organization,
this report looks at the different ways through which the implementation of new
systems at Cisco Systems Company worked. The problem as highlighted in the
report was on the challenges that Cisco Systems encountered after its number of
customers had increased without a substantial investment in a more elaborate
supply chain. Furthermore, the company’s nature of diverse products range was
another issue which made the company encounter high numbers of customer
complaints. Moreover, the lead-time of many of the orders placed in the company
increased a lot during that period. This then called for drastic measures to
address the issue promptly.
The solutions adopted to solve the problem
were divergent since they were supposed to address a wide range of
issues. Firstly, the company adopted a global structure in addressing the
production, transportation, and the supply of its products. Further, the
approach of localization was critical in reducing the inventory time for its
customers. Moreover, the improvement and integration of the company’s systems
was another major change adopted by the organization.
There are a number of benefits that the organization ripped from
the adoption of the new system. For instance, the customer retention rate went
higher as orders would be delivered within the stipulated time. Further, the
company’s revenues went high as shipments were delivered at proper time.
Moreover, the company got to a better position in relationships and alignments
with its partners as its competitiveness in the market became better.
The other area addressed by the report is on
the challenges which came with the change in the supply chain of Cisco Systems
Company. As explained, the company had to address the costs of change.
Furthermore, change in management was another great challenge as the
organization had to dedicate resources to factors such as skills improvement
among others. Moreover, the new change had an effect on the
organization’s structure and therefore, it took dedication and strive for the
company to ensure that the change was positive.