CISCO TAPS REDWOOD SYSTEMS FOR SUPPLY LOGISTICS
Cisco Systems, the U.S. computer networking giant, has hired Redwood Systems, a logistics subsidiary of trucker Consolidated Freightways Corp., to manage receiving and warehousing of assembly parts for Cisco routers.
Cisco said it wants to reduce back-end supply and inventory carrying costs at its manufacturing plants in the United States and Mexico. Redwood will be responsible for the entire manufacturing supply-side logistics operations, including working through Cisco-approved vendors, inventory management, and transporting parts to Cisco assembly lines on a just-in-time basis.
Redwood manages two dozen truckload deliveries per day to Cisco’s contract manufacturing facilities, with incoming parts moving through distribution facilities in the United States and Mexico.
“With Redwood experts managing the day-to-day details of our supply-side logistics, we can focus our resources on what we do best — the design, development and front-end manufacturing of networking hardware and software,” said David Showalter, Cisco’s Florida/Mexico operations manager.