Supply Chain Risk Management – Chengdu EQ Lessons Learned

1. Supply Chain Risk Management – Chengdu EQ Lessons Learned John O’Connor Erica Agiewich

2. Crisis Management The Manufacturing Crisis Management Team (MCMT) is a cross functional team to preserve continuity of supply to customers in the event of a supply chain disruption • Objectives: • Ensure continuity of supply to customers • Optimize operational recovery through effective coordination of MCMT functional teams and members for internal or external disruptions • Provide critical supply chain business continuity planning data and documents and analysis • Support theater, corporate and executive crisis management teams as necessary

3. YES MCMT Activation & Resolution Process • Event Notification (NC4, SSBR, news, employees or supply-risk@cisco.com) • Log Event in Crisis Dashboard • SCRM Team Event Assessment (sites, revenue) Valid SC Risk? • Activate MCMT Incident (L0-L3) • Alert MCMT Members (meet as needed) • Incident Resolution

4. Crisis Management Case Study: Chengdu Day 1 • Initial NC4 notification on Sunday night (steps 1-2) • MCMT incident created Monday morning based on initial mapping of 8 sites (1 with significant revenue impact) in a 400m radius (step 3) • MCMT met 2x on Monday to determine go forward plan (step 4-5). Vendor managers checked: • Commodity suppliers initially identified in EQ zone • China factories for supply chain impact • Airport, road, rail status in EQ zone • Cisco TCMT initiated to track employee safety

5. Crisis Management Case Study: Chengdu Days 2-5 • MCMT met daily rest of week to validate scope, status with focus on employees, sites, transportation • Number of sites of concern in earthquake zone scaled down as each supplier reported back no impact other than transportation delays • By end of week problem narrowed to one supplier whose factory suffered damage • Supplier confirmed impact parts from that site and Cisco started to assess product level impact

6. Crisis Management Case Study: Chengdu Week 2 - 3 • MCMT met 1-2x/week to focus on recovery of 15 parts made at the impacted suppliers (step 6) • Commodity team worked with suppliers to understand factory ramp & commit and working with alternate suppliers • Ongoing revenue impact analysis by planning team

7. Impact Analysis Partner Impact No CM Impact No SLC Impact Max Rev Impact Manufacturing Sites Moderate Impact Logistics Centers TTR (Weeks): TBD Max/Rev Impact: TBD Suppliers Crisis Management Case Study: Chengdu • Suppliers/Sites • CPNs • Emerg. contacts

8. Crisis Management Case Study: Chengdu

9. Lessons Learned • MCMT activation process well documented but recovery processes not sufficiently detailed • Need criteria for when MCMT hands off to operations • Need playbooks for different types of situations

10. Lessons Learned • Communication • Balance between keeping communication tight vs. including appropriate SMEs • Crisis dashboard access • Content & timing to extended mfg team and company • Need to streamline communications when multiple individuals associated with a site and/or supplier

11. Lessons Learned • Roles & responsibilities • Need to set expectations for each functional group (who delivers what when) • High turnover on MCMT is a training challenge • MCMT reps delegate down – proxies not trained and/or not decision makers

12. Q&A