Foxconn Vertical Integration Essay

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Foxconn great level of vertical integration was an additional benefit to Cisco. It made manufacturing more supple, alert and well-organized, which resulted in lower costs, simple logistics, smaller lead times, and coordinating easy. With Foxconn overseeing many key aspects of the Viking router in Shenzhen and managing the last assembly in Hong Kong, bulk of the production was within a two hour driving radius. This may possibly cut transportation costs and shipping time if assembled in another country. Furthermore, it could reduce inventory demand and save Cisco money that is tied up in holding inventory. Foxconn vertical integration meant that Cisco could eliminate price hikes due to different suppliers. With the “one-stop shopping” that Foxconn

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