Their product portfolio includes technical products with a high value such as routers and switches, but also smaller items like IP phones. The products are leased to customers and in case of break downs or issues a replacement product must be delivered as soon as possible. Since these products are essential for Cisco’s customers it is of great importance that the service level to the customer is met and the response time is short.
Argusi was asked to map the repair network structure and develop a model which calculates optimization scenarios. Cisco analysts were trained to be capable to do the strategical studies. In fact, we modeled several business cases on which we focused on transportation costs, repair and the effect of opening a new repair site. This new site option was on a location with lower wages but higher transportation costs because of a longer distance to the market. Because of the diversity in product characteristics, we modeled on SKU-level. The models were made with Llamasoft Supply Chain Guru.