PGN21C Global Supply Chain Management


1. Examine the Cisco-implemented networked supply chains concept.

What are its strengths, and what are its weaknesses?

2. Examine why Cisco was in financial trouble early in 2001.

Are you willing to admit that Cisco’s financial troubles were caused largely by inherent problems in their systems?

Maybe it was simply because they didn’t forecast a market recession.

Be able to support your argument.

3.Aside from the information system issues mentioned above, what specific problems did the case present?


Strength Of The Network Supply Chain

The contract manufacturers took 15 minutes to place orders.

The order fulfillment was efficient because of this.

Weakness in the Network Supply Chain

Transactions between the suppliers and manufacturers of the contract were not positive.

Due to this issue, customers were not delivered on time.

Because of internal conflicts, they lost customers (Case 24 Cisco Systems: Supply Chain Story 2017).

Cisco Systems suffered financial difficulties due to their system alone.

They have a pyramid structure in their supply chain, where the company is at its central point.

Cisco has handed its main delivery system over to its suppliers.

Large companies depend on contract manufacturers, and large suppliers are also dependent on them (Flynn Koufteros & Lu, 2016).

The problem was caused by poor communication between the tiers.

There were problems with Cisco systems. They delayed customers’ delivery.

The main reason for the problems in Cisco Systems was the poor communication between suppliers and contract manufacturers.

Refer to

Cisco Systems Supply Chain Story, Case 24

Flynn, B.; Koufteros X; and Lu G. (2016).

Theory in Supply Chain Uncertainty, and its Implications on Supply Chain Integration.

Journal of Supply Chain Management, 52(3) pp. 2-37.

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