The nature and dynamism of the supply chainwithin the global market coupled with the vast number of Cisco Companycustomers had been the main contributors of the challenges that the company hadbeen facing in its supply chain. There were issues with backorders, with morecustomers complaining about how their orders were being delayed past the communicateddates. Some customers complained of products backlogs which at times would goup to 150 days when they made direct purchases from Cisco. Moreover, othercustomers had turned other networking gear vendors while the concerns of waittimes being rampant on products such as ASA firewalls and Catalyst 2960switches. Office1 During the fiscal quarters of 2010, CiscoCompany highly attributed their challenges is supply chain to growth the ineconomy as well as the labor constraints experienced by the Cisco supply chain.
According to a report given by Channel Insider, Cisco was struggling to provideits orders on the core networking products due to a slum in the supply of rawmaterials and especially the ones which were needed to make some of thecompany’s key products such as semiconductors used in making network switchesand routers (Sáenz & Revilla, 2014).During this setback, the transactions betweensuppliers and manufacturers were not streamlined as there were sometimes delaysin the delivery of products as well as the payments for products. Therefore,this provided a very big chance for errors to occur. Moreover, the suppliers ofCisco were faced with relatively long order-to-pay cycles. During the sametime, the company faced a very high shortage of some of its key raw materialsand production components. As a result, the customers were adversely affectedas their revenues took a dip due to delayed supply.
In addition to that, thecompany which had for a long time prided itself on a good relationship it had createdwith its customers was being faced with customer wrangles. More costs andinconveniences were incurred as compensations Office1Referencecan’t find it