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Case study
Cisco Systems is a global technology company offering products ranging from network interface cards and remote access devices to routers and voice over internet protocol communications. Cisco uses the Internet to do business and has opened portals for its customers (Cisco Connection Online - CCO), suppliers (Manufacturing Connection Online - MCO) and employees (Cisco Employee Connection - CEC). This expansion of access to intellectual capital has increased operational efficiency and reduced costs.
The CCO portal contains a number of customer-facing applications. Customers can use CCO to order products, diagnose network problems and find answers to technical questions. They can configure, price, route and submit orders electronically to Cisco on an automated order-flow system. Most of these orders go directly to FedEx and UPS package trackers, which enables customers to determine the status of their shipments in real time. This system has shortened Cisco's order by 70 percent and saved the company $440 million in 1999 by streamlining the process from order to shipment. It has also contributed to an increase in customer satisfaction.
Draw a flow diagram in which you outline the product and information flows that take place through CCO. Identify at least one level of upstream and downstream participants in this supply chain. (If you have access to a computer, you can draw the flow diagram in Microsoft Power Point.)
How do these flows differ from product and information flows in more traditional supply chain?
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