Cisco IT Improves Strategie Vendor Management With more than 15,000 employees and fundreds of

Question: Cisco IT Improves Strategie Vendor Management With more than 15,000 employees and fundreds of foestions , ench Cisco office has they complex requirements . Although Cisco uses its own products whenever possible , it still hen anmund spend of $ 500 million for IT products and services from other companies Working with local suppliers , Cisco encountered a Cisco IT Improves Strategie Vendor Management With more than 15,000 employees and fundreds of foestions , ench Cisco office has they complex requirements . Although Cisco uses its own products whenever possible , it still hen anmund spend of $ 500 million for IT products and services from other companies Working with local suppliers , Cisco encountered a number of issues . It was difficult to get formal contracts , support wasn’t always there when needed , and there were often disagreements over prices and warranties . Their somewhat Imphazard way of soliciting tids resulted in little or no emphasis on aligning with corporate strategy , Ciseer needed to unify its vendor management process to gain greater control and reduce costs . The Solution Cisco created the Cisco Vendor Management Organization ( VMO ) a new global 15 group within Cisco to manage strategic vendors to supply hardware infrastructure , software , storage , telecom services , and outsourced services . The VMO was also tasked with providing expertise in process and business development , asset management , and vendor engagement in keeping with Cisco’s corporate strategy . Willi standard contracts in place worldwide , Cisco could now manage existing contracts and negotiate new ones more easily . Thanks to the efforts of the VMO , Cisco saved $ 33 million through the first three quarters after its inception and 564 million over the life of the contracts put in place during that time ! Cisco has also reduced its number of vendors and has consolidated contracts with a small number of strategic vendors to give them more business and reduce Cisco’s paperwork . Cisco also works with its strategic vendors to help them develop skills and relationships to increase their value and position in the market , and Cisco is receiving the same type of support from its strategic vendors . By centralizing its outsourcing contracts , Cisco saves $ 11 million per quarter Lesson Learned When it comes to vendors , less is more : working with a few number of strategic vendors that help a company fulfill its business strategy . This , in turn , creates a tighter connection between the business and IT and results in closer alignment between the two strategies , saving time and money , please answer the questions !? 1. Describe challenges Cisco encountered while procuring products and services . 2. What are the responsibilities of the Cisco Vendor Management Organization ( VMO ) ? 3. In what way is Cisco improving its vendor management ?
1. Cisco is the worldwide leader in IT and networking. The path to success was not always easy and ensuring timely services wasnt consistent then. Although Cisco uses its own products whenever possible , it still had spend amount of $ 500 million for…View the full answer