Problem the vast number of Cisco Company customers

Problem

The nature and dynamism of the supply chain
within the global market coupled with the vast number of Cisco Company
customers had been the main contributors of the challenges that the company had
been facing in its supply chain. There were issues with backorders, with more
customers complaining about how their orders were being delayed past the communicated
dates. Some customers complained of products backlogs which at times would go
up to 150 days when they made direct purchases from Cisco. Moreover, other
customers had turned other networking gear vendors while the concerns of wait
times being rampant on products such as ASA firewalls and Catalyst 2960
switches. 

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During the fiscal quarters of 2010, Cisco
Company highly attributed their challenges is supply chain to growth the in
economy as well as the labor constraints experienced by the Cisco supply chain.
According to a report given by Channel Insider, Cisco was struggling to provide
its orders on the core networking products due to a slum in the supply of raw
materials and especially the ones which were needed to make some of the
company’s key products such as semiconductors used in making network switches
and routers (Sáenz & Revilla, 2014).

During this setback, the transactions between
suppliers and manufacturers were not streamlined as there were sometimes delays
in 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 of
Cisco were faced with relatively long order-to-pay cycles. During the same
time, the company faced a very high shortage of some of its key raw materials
and production components. As a result, the customers were adversely affected
as their revenues took a dip due to delayed supply. In addition to that, the
company which had for a long time prided itself on a good relationship it had created
with its customers was being faced with customer wrangles. More costs and
inconveniences were incurred as compensations