HP

 Started by William Hewlett and David Packard

in garage nearby Palo Alto, California.

 Established Hewlett-Packard (HP) company in

1939 in Packard’s garage with an initial capital
investment of US$538.
"It is necessary that people
work together in unison
toward common objectives
and avoid working at cross
purposes at all levels if the
ultimate in efficiency and
achievement is to be
obtained."
— Dave Packard
HP's Corporate Object
 Welcome to HP
 World’s largest IT company- by revenue
 Headquarters in Palo Alto, California, United States
 Known worldwide for its printers, personal
computers and high end servers.
 First Big customer- Walt Disney.
 EVOLUTION
1938-hp sells its first financially successful product audio
oscillators (Model200B) to Disney.
1966- hp enters the computer market with its hp2100/hp1000
series of mini computers
1980- hp introduces its inkjet and laser printers.
1990-hp goes online and opens up hpshoppingonline.com to
sell online directly to customers.
2002-takes over Compaq a major player in desktop and laptop.
2006- introduced an ambitious marketing campaign called “
The Computer Is Personal Again ”.
 BUSINESS UNITS
 ENTERPRISE SYSTEM GROUP-deals with enterprise
servers, storage and management software.
 IMAGING AND PRINTING GROUP-deals with
printing and imaging solutions, digital imaging and digital
publishing.
 HP SERVICES-delivers premier global IT services and
solutions.
 PERSONAL SYSTEMS GROUP-deals with desktop
PC’s, notebook’s, workstations, personal devices etc.
HP SUPPLY CHAIN
MANAGEMENT
HP is the ninth largest industrial supply chain in the
world.
It has the largest supply chain in high technology in
terms of dollars, breadth, product complexity and
global reach.
The company excels at creating exactly the products
that customers need to meet their business
requirements at affordable price points and with the
technological leadership that the market has come to
expect.
 HP’s MULTITUDE OF
CHALLENGES
 COMPLEXITY
HP designs and manufactures an extremely broad mix of
products from handheld computers to cameras, large UNIX
servers and inkjet printers etc all of which are sold in countries
all over the world. Doing so requires multiple supply chains
that can be extremely complex because of diverse business
needs.
 GLOBAL REACH
Supplying 200,000 product offerings to customers around the
globe through 100,000 retail outlets in 175 nations was a
challenge to HP.
 DIVERSITY

The service business unit serves more than 250,000

accounts worldwide .It supports an installed base of
over 70 million units with warranty services as well
as hot spare requests which are to be met within two
hours of response time.
 STRATEGY IN MOTION
HP leadership recognized that synergizing the supply chain required
innovative approach. HP decided to use the company’s best ideas and
practices to create an agile supply chain environment which would provide
competitive advantage and will be flexible to adapt the changing business
needs.
HP designed five generic, optimal supply chain models based on the common
attributes shared by HP’s four business units by creating horizontal and
vertical integration in specific functional areas.
This way each business units could use business models that best fits its
product and allow each product line to most effectively meet customer
demand and maintain customer satisfaction while keeping HP competitive
in quality, innovation, price and delivery.
 HP’s SUPPLY CHAIN MODELS
NO TOUCH
Delivers good directly from the manufacturer to the customers
with no intervention of HP in physical flow.
LOW TOUCH
Enables customer variety and enhanced product offerings through
product localization and customization while still leveraging
economies of scale in the complexity of high technology
manufacturing.
 CONFIGURE TO ORDER
Delivers high volume configuration capabilities to quickly
assemble products to meet customer specification.
HIGH VALUE
Supports complex, highly configurable products for the solutions
that business expect to be engineered expressly for their needs,
such as infrastructure solutions, servers and high end printer
products.
SERVICES
Executes on a wide variety of service level agreements to ensure
that the right part is in the right place, at the right cost and at
the right time to meet customer service requirements and to
support the consulting and integration business of HP Services
global business units.
 KEYS TO EXECUTION
COLLABORATION
 The supplier base had to be simplified and standardized to
reduce costs, complexity and risk in HP’s existing supply
chain This process included outsourcing nonstrategic
processes and selected distribution assets, as well as analyzing
HP’s total supplier base. Using a model designed to emphasize
value capture, HP considered supplier price, service, value,
and benefit.
 CONSOLIDATION
HP assessed and mapped its existing IT infrastructure to the new
supply chain models and identified areas that could be
consolidated. Using new tools and methods that allowed visibility
into information flow, HP was able to identify opportunities for
consolidation that helped enhance the quality of the supply chain.
PROCESS EXTENSION
HP integrated key supply chain components into a uniform, extended
supply chain. This included
Procurement and Sourcing
Product life cycle management
Logistics and Distribution
 BENEFITS FROM THE STRATEGY
Benefits to HP
 Adaptation and responsiveness to changing business
dynamics.
 Faster time to market with new and competitive products.
 Decreased manufacturing, production, distribution and
channel cost.
 Increased customer satisfaction.
 Faster service and response time
 Continued leadership in high-tech market.
Benefits to suppliers
 Ease in doing business- the supply chain strategy allowed a
single point collaboration with HP by simplifying supplier’s
interaction with HP, increasing business collaboration and
lowering costs.
 Elimination of non value added steps such as administration and
costs.
 Enhanced supply and demand visibility- the enhanced visibility
improved the participants ability to predict demand, enable
suppliers to build purchasing, manufacturing and logistical
efficiencies into their own supply chains.
Benefits to customers

 Incremental product value delivered for the same or even lower

purchase cost.
 Hp now offers a one stop shopping experience for global
corporate customers.
 The economies of scale have helped HP focus on its legacy of
manufacturing innovation, building and delivering precisely
the product that customers need and want to buy.
 HP’s adaptive supply chain facilitated faster shipments,
quicker response time and greater customer service response
and control anywhere in the world.
 THE FUTURE OF HP’s SUPPLY CHAIN
HP will continue to examine and deploy business and IT
efficiencies throughout its supply chain. At the same
time HP has an eye on tomorrow’s best practices and
processes.
Balancing the cost and opportunities related to supply
chain concerns is no longer just a manufacturing
problem; it is an enterprise business issue with many
stakeholders. Achieving maximum business
efficiencies and economies of scale requires an agile
supply chain strategy that is truly global, will
integrate and evolve cost effectively, can adapt to
dynamic business changes an benefit all stake holders.