INTELLIGENT BRANDS // Cabling
Sven Jirgal, Vice President and Chief Operating Officer, Cisco Systems Capital Corp.
We are basically
there to help
Cisco customers
and partners
adopt Cisco
technology
and provide
the financial
wrapper
inventory that needs to be managed.
Products are separated into those that
have a secondary value and those that
do not. Any product that has left the
manufacturer and been shipped and
has not been sold for any of the above
reasons needs to be re-inspected.
This needs to be done before it can
be returned into the regular sales
channels. Those products that have
been used and returned as part of a
lease financing arrangement also need
to be refurbished. They are refreshed
and upgraded as best as possible and
on what makes sense. Finally those
assets that have no secondary value are
disposed in an ecologically friendly way.
“Like any other company we have a
reverse logistics function too where we
take products back.”
Cisco products that have been remanufactured and refurbished in
this manner are made available for
repurchase through the regular sales
channels. A channel partner would see
the inventory of these products with
technical specifications similar to the
inventory of other prime products. The
only difference in the listing being the
price and a suffix indicating the source
www.intelligentcio.com
originating through reverse logistics. For
all purposes re-manufactured products
follow the same ordering and shipping
procedures, channel partners would earn
the same rebates, and end customers
would get the same service support,
similar to any Cisco prime product.
Contrary to first impressions, such remanufactured products have significant
demand in certain applications areas
and are not canabalising prime new
products. “Where we see the most
uptake for re-marketed products
is actually in managed service
applications. The customer does not care
what product is actually used to deliver
the managed service. And the service
provider is looking for a cost effective
way to deliver that service,” elaborates
Jirgal. Traditionally, Cisco managed
services has seen the most uptake in
US, Western Europe, Japan. But Jirgal
says the business has grown fourfold in
the Gulf over the last 18 months, and
includes the who is who of the industry.
Managed services using re-manufactured
Cisco equipment are a win-win situation
for end users, channel partner and
vendors. They use products that give the
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