Slide 16 of 27
Notes:
- Main Point(s)/ScriptThe bottom Line Benefits of networking the Supply chain are significant --
- 45% of the products shipped are not touched by Cisco.
- New Product introduction time has been accelerated by 3 months due to the collaborative design tools used by Cisco and its suppliers. This has enhanced Cisco margins by an estimated $100 million, representing between 1 and 2% of company profits.
- Lead times for build-to-order, custom-configured products have come down from 6 to 8 weeks to 1 to 3 weeks. These savings are a result of the direct access suppliers have to order information, the automated testing that is done and because suppliers can
- Engineering Change Notice times have come down from almost 3 weeks to 10 days due to the collaboration tools for New Product Introduction.
- Eliminating PO s and purchase orders, avoiding extra test engineers and the lower manufacturing costs that have resulted from Cisco’s supply chain initiatives have lowered annual operating costs by $75 million.
- In addition to these financial benefits, Cisco’s supply chain initiatives have allowed the company to scale manufacturing operations cost effectively while constantly raising its levels of quality
- Interaction: Customers sometimes want to know the type of data transferred between Cisco and its suppliers. A great deal of product data and multiple feeds of transaction data flows between Cisco and its suppliers, ~ 40% is EDI, the rest varies.
- Demo: Demo and testimonial available
- Transition: Lets next look at the Employee Service applications Cisco has deployed
