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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 73.80-0.2%1:44 PM EST
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To: Jay Couch who wrote (20835)1/15/1999 7:07:00 PM
From: Mr.Fun  Read Replies (1) of 77400
 
That is what Cisco would have you believe. In fact, Cisco's SG&A at 21.6% of sales in FY1998 is higher than Lucent's at 21.3%. In fact, Cisco has advised that SG&A for FY1999 will be another 180bp higher because it correctly recognizes the need to match up bodies on the street with a multi-level customer sale. LU has many more sales bodies, but also more than 3 times the revenue base to support.

BTW while 60% of Cisco's orders come in through CCO, most of them are the result of a very effective sales force making the sale face to face, and in many instances, the sales rep actually inputs the order for the customer. Actually, many of these orders are actually distributers and resellers ordering on behalf of the end customer.

CCO is a great system which allows customers, distributers, resellers and sales people to track orders, etc.. It frees the sales rep the unproductive task of order entry and tracking. It accelerates the logistics of getting customer equipment delivered. (In fact the manufacturing and logistics behind CCO is much more impressive than the CCO itself) However, it is not the case that 60% of Cisco's orders are unsolicited web site hits which have not required the overhead of actually having a sales person do his job. Lucent's order entry and logistics have come along way. They are not state of the art like Cisco's, but the "sales model" is the same: good sales people meeting customer needs.
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