Aligning with changing dynamics, Cisco has embarked upon major foundational changes in the Reverse Logistics space to support the Manufacturing Excellence Strategy and streamlining its processes to create a world class, end-to-end global business model. Building globally consistent, scalable and reliable process with connected system(s) for Inbound Logistics, Receiving/Disposition, Inventory Management and Value Recovery of returned products, in other words unlocking value from Cisco product returns.

1. Reverse Logistics Transformation
Case Study at Cisco
Mudit Agarwal, Solution Architect,
Reverse Logistics, Cisco
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2. Introduction
Focus Area
Agenda Approach
Results
Closing
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3. Introduction: Presenter
12 Years of Industry Experience, last 3 and half
years at Cisco
Worked in different companies from small start-up
to top fortune 100 companies
Currently working as Solution Architect, World-
Wide Reverse Logistics, Cisco
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4. Introduction: Company
London
Ottawa, Canada Amsterdam
San Jose, CA Boxborough, MA
Tel Aviv Shanghai
Herndon, VA
Richardson, TX Raleigh, NC
Dubai
Bangalore Singapore
 67,000 employees in 140 countries
 300+ office locations
Sydney
 Headquarters:
 1/3 Engineering/IT, 1/3 Sales, 1/6 Service, 1/6 Others
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2008 Cisco Public 4

5. Cisco at a Glance
Vision: Changing the way we work, live, play and learn
 Worldwide leader in networking  10 consecutive years on Fortune Magazine‟s
for the Internet “Best Companies to Work For” list
 Founded in 1984  130+ acquisitions
 $110B Market Cap (Jan „09)  85+% of Cisco Systems products are
 $29 B cash and investments distributed via channels
 More than $5 B/year in R&D  Business Week valued Cisco‟s brand at
US$19.1 billion and ranked in top 20 WW
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6. Innovation in Multiple Manifestations
New Business Model New Market
Unified
Linksys
Communications
New Product New Customer
or Service Experience
Network Advanced
IP Telephony
Services
New Process New Technology
Business Councils CRS-1/IOX
New Education
Engine New Channel
E-Commerce
Networking Academies
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7. 2008 Ranking: AMR Research—Top 25 Supply Chains
2007 2008
1 Apple 14 Best Buy
2 Nokia 15 Nike
3 Dell 16 SonyEricsson
4 Proctor & Gamble 17 Walt Disney
5 IBM 18 Hewlett-Packard
6 Wal-Mart 19 Johnson & Johnson
7 Toyota 20 Schlumberger
8 Cisco 21 Texas Instruments
9
9 Samsung 22 Lockheed Martin
1
10 Anheuser Busch 23 Johnson Controls
0
11 PepsiCo
Cisco 24 Royal Ahold
12 Tesco 25 Publix Super Markets
13 Coke
Source: AMR Research, 2008
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8. © 2006 Cisco Systems, Inc. All rights reserved.

9. Introduction
Focus Area
Agenda Approach
Results
Closing
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10. What is Reverse Logistics
 Recovering Cisco‟s products back from Customer/
Distributor, and redeploying them in the way that brings
the best value to Cisco
 Create a consistent, scalable, global end-to-end
process and system for inbound logistics and receiving
through disposition and fulfillment
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11. Reverse Logistics Vision
“Deliver a globally consistent, scalable, world class,
end-to-end business solution by unlocking value from
Product Returns aiming to Optimize net cash
contribution, Reduce transaction cost, Improve
customer satisfaction, and Promote corporate
citizenship”.
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12. Drivers
 Lower Product Return Rate after booking
 Brand Protection / Gray Market Risk
 Value Recovery Opportunities
 Building new Customer Base
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13. Cisco’s Complex Supply Chain
Hybrid Wide range Most Breadth of Acquisition
Production of Products Products Are Customers Integration
Model Configured (131 to date)
(95% to Order
Outsourced)
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14. Introduction
Focus Area
Agenda Approach
Results
Closing
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15. Approach: Scale
30,000 Units received each week
22,000,000 Lbs of material recycled
annually
$100,000,000 Net Contribution
annually
Note: These numbers exclude products from consumer acquisitions‟
like Linksys
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16. Approach: Process Verticals
Customer Product Returns Management,
Inbound Logistics Management of product returns in transit to
receiving location – Inbound
Receiving & On-dock receipt to put away as per disposition
Disposition instructions
Express Repair order management, Express Test NPI
Screening & process, Shop floor control set up, DGI to FGI
conversion
Testing
Inventory Managing DGI/ FGI inventory, Management of
Management Purge/Scrap process
Order Point of receipt of order to point of report pick
Management
Order
Report pick to actual ship confirm
Fulfillment
Outbound Management of refurbished product shipment from
the supplier location in transit to customer location -
Logistics Outbound
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17. Inbound Logistics
• Follow-up with customers on RMA‟s
• Label printing by the customer
• Pick-up materials from Customer location
• Provide visibility for on Dock receipt to close the return
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18. Receiving & Disposition
• Receiving against a valid RMA
• Re-routing Failure Analysis RMA
• Apply disposition rules
• Manage discrepancy
• Provide customer credit
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19. Inventory Management
• Cycle count management
• Increment stock based on Receipts – DGI and FGI
• Inventory synchronization
• Decrement stock through Scrap & Recycling
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20. Order Management
• Demand list management
• Order Management
• Picking and Packing
• Inventory updates / decrement
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21. Order Fulfillment
• Tax , Customs and Legal compliance
• Packaging
• Shipping
• Integration with outbound logistics
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22. Outbound Logistics
• Select a transport provider
• Ship the product
• Tracking of outbound logistics
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23. Approach: Reverse Supply Chain
Distributor Reseller End Customer
Manufacturing
Service
Provider
Cisco Reverse Remarketing
Logistics Partner Recycle
Cisco
Service Repair
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24. Approach: Architecture Direction
RMA
Source
System
ERP System New Acquisition
RMA PickList Like Part Return to „A‟ Stock
Cisco
Other Services
Open RMA Sync RMA Cancel X-Dock Part List
Product Data SN Data
Alt Part
Service Gateway
Receive product Master Data Inventory
(PID,SN etc.) Management
Partner
Ship product
New Partner
Other Capabilities (Acquisition
Recycle Disposition
Integration)
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25. Approach: Reverse Logistics Interactions
RMA /
Return tool
Reverse
Logistics
Partner Receipt (2)
Cisco
Customer
(Oracle ERP)
Ship (3)
Cisco Internal Customers
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26. Approach: Challenges/ Gaps
 Implementation Challenges
1. Short Time To Market
2. Evolving Business Model
3. Unavailability of Out Of Box Functionality in Oracle modules
4. New Reverse Logistics Partner On-boarding
 Gaps in Oracle functionality
1. Like Part Processing
2. Pro-Active Asset Recovery Functionality
3. Business Rules Driven Supply Demand match engine
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27. Introduction
Focus Area
Agenda Approach
Results
Closing
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28. Solution Benefits
 Bring new customer into Cisco
 Recycling – Green Initiative
 Improved Process Efficiency
 Reduced Transaction Cost By ~ 30%
 Enhanced Customer Experience
 Improved Process for Product Reuse
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29. Cost Center to Profit Center
3 Year Trend Analysis
$157M
$160M Value Recovery and Net Contribution
$140M
$120M
$97M
$100M
$80M
$60M $49M
$40M
$20M
$0M
FY06 FY07 FY08
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30. © 2006 Cisco Systems, Inc. All rights reserved.

31. Introduction
Focus Area
Agenda Approach
Results
Closing
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32. Closing: Recap
 Took about 18 months to complete this project
 Built end to end Cisco‟s Reverse Logistics Supply
Chain
 On-boarded new partner
 Services based Architecture
 Converted Cost Center to a Profit Center
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33. Q&A
Mudit Agarwal
Email: Mudit@cisco.com
© 2006 Cisco Systems, Inc. All rights reserved.