CISCO
orders are transacted over the Internet. One of the most recent management decisions has been the implementing of a new supply chain planning application to better support inventory planning for its global service-parts logistics network. Corporate executives said deployment of the new system, MCA Solutions’ Service Parts Optimization Software, was driven in large part by a desire to improve customer service and cut inventory and warehousing costs. One of the main objectives of the Cisco Service Parts business strategy is to use advanced supply chain management tools as a source of competitive advantage. Their primary expectation of this implementation is a significant improvement in customer service and satisfaction resulting from better positioning of our critical inventory assets. Doing so, they expect to reduce their overall inventory expenses. A streamlined supply chain and more responsive customer service operation will be essential for Cisco as it goes forward with plans to expand its market share and even acquire smaller companies.
Another important management decisions is the implementation of virtual manufacturing. Virtual manufacturing allows Cisco to seamlessly manage thirty-seven global plants as one. Cisco only owns two of the plants, and by using the Internet; they are able to maintain quality control and production schedules across operations in a manner transparent to customers and employees alike. Virtual manufacturing reduces overhead of production facilities and allows the company to focus on their core competency – networking for the Internet.
The management’s vision of the future is that for companies, countries, and individuals around the world, everything is going to be connected - in the office, in the car, and in the home. The company sees that there are two fundamental equalizers in life — the Internet and education. With nearly 800,000 unfilled Internet-related jobs, which will grow to a billion plus in the next ten years, the Internet is creating e-learning as one of the most powerful learning tools of the next decade for businesses, schools, and individuals. Management’s vision for Cisco is to accomplish eliminating barriers of time, distance, and socio-economic status so that individuals will be empowered to take charge of their own lifelong learning. Seventy million people are already doing so by receiving an education on the Internet. This is only the start. One day, management hopes that training for every job on earth will be available on the Internet.
Under John Chambers, management has set a mission statement for the company as they move into the future. This statement is as follows: Shape the future of the internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners. They have also formed a hierarchical strategy for execution. At the base it keeps the FY incentives, followed by their goals, their mission/purpose and at the top their vision. Using this strategy, management hopes to shape the future, empower the internet generation, and change the way we work live, play and learn.