Volker Schmitz, Director, Supply Chain Operations at HP - Leadership by Supply Chain

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Volker Schmitz, Director, Supply Chain Operations at HP spoke at the SCL Event July 2013

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Volker Schmitz, Director, Supply Chain Operations at HP - Leadership by Supply Chain

  1. 1. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Private. LeadershipbySupplychain Volker Schmitz Director, Supply Chain Operations HP EMEA
  2. 2. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HPistheworld’slargesttechnology company,deliveringinnovationinprinting, personalcomputing,software,services,and ITinfrastructure.
  3. 3. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Innovation
  4. 4. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.4 1986 3D graphics workstations Commercialized RISC chips 1989 Digital data storage drive 1999 Molecular logic gate 1994 64-bit architecture 2005 Virus throttle 2003 Smart cooling 2010 ePrint 2002 Rewritable DVD for standard players 2011 MagCloud StoreOnce ecoPOD 2013 Software-defined Networking 1968 Programmable desktop calculator 1972 Pocket scientific calculator 1975 Standard for interface bus 1980 Office laser printer 64-channel ultrasound 1964 Cesium-beam atomic clock 1963 Frequency synthesizer 1956 Oscilloscope 1951 High-speed frequency counter 1942 High-reliability voltmeter 1939 Company founding Resistance capacitance audio oscillator 1984 Inkjet printer 2013 Moonshot 1966 Light emitting diode (LED) 2003 SmartCooling A history of innovation
  5. 5. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.5 FY12 net revenue: $120.4 B HP financials By segment (1) By region 1. Revenue mix calculated based on total segments, which excludes eliminations and other items not included in segment results. EMEA Asia Pacific Americas U.S. 35% Canada/Latin America 10% Printing Services Enterprise Servers, Storage, & Networking 3% HP Financial Services & Corp. Investments 29% 28% 17% 45% 36% 19%3% Software 20% Personal Systems
  6. 6. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.6 HP solutions for the New Style of IT: Our Innovation Agenda Provide digital on/off-ramp for document workflow Simplify the mobile print experience Reinvent the Core Lower cost & environmental impact of printing Establish mobile leadership Personal Systems Printing
  7. 7. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. LeadershipbySupplyChain
  8. 8. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.8 Every 60 Seconds…. 120PCs 100Printers PPS delivers to our customers The industry’s largest supply chain
  9. 9. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.9 HP Confidential Today’s Local/Global Manufacturing Model for EMEA • Manufacturing locations are defined based on product characteristics • Local/regional manufacturing for Desktops and high end laser • WW manufacturing out of Asia for Notebooks and volume printers
  10. 10. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.10 HP Confidential Supply Chain supports business with choices INVENTORY COSTS Inventory reductions to improve cash flow Ongoing cost reduction to improve profitability
  11. 11. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.11 Western China Multi-Modal Logistics Land Bridge to Europe Rail to China’s Eastern seaboard Air connection to Europe Sea to Europe RAIL: 20 days Costs medium SEA: 30 days Costs low Plane: 5 days Costs high HP is actively using all possible logistic routes • Rail • Plane • Sea Costs and inventory optimization is not a one-time effort. But is optimized ongoingly based on product category and business situation
  12. 12. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.12
  13. 13. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.13 Western China Multi-Modal Logistics Land Bridge to Europe China to EMEA: 2100Containers 50 Trains 4M PPS products
  14. 14. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.14 Western China Multi-Modal Logistics Rail to China’s Eastern seaboard Sea to EuropeSEA: 30 days Costs low • Standard entry point for Sea shipments: Rotterdam / Dubai • New opportunities: Adding Piraeus as an entry point for Europe!
  15. 15. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.15 HP Confidential Driving Factors for Selecting Ocean Freight Gateways Ocean Freight DynamicsSupply Chain Costs Turn-around Time
  16. 16. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.16 HP Confidential Piraeus As A European Deep Sea Freight Gateway Total port area: 9 million meters2 Quay length: 3,300 meters Maximum sea draft: 18 meters Bonded warehouses: 247,000 meters2 Roofed warehouses: 76,000 meters2 Open storage areas: 900,000 meters2 2012 throughput : 2 million+ containers
  17. 17. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.17 HP Confidential Europe, Middle East, Africa Supply Chain – 2013 Plan Includes owned and third-party facilities Ocean Freight Gateways Main Manufacturing St. Petersburg Prague Turkey
  18. 18. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.18 HP Confidential Multi-modal Logistics Outbound from Piraeus
  19. 19. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.19 HP Confidential Ocean Freight Gateways – Work in progress Rotterdam (NL) Serving Western Europe & Nordic Countries Piraeus (GR) Serving Southern & Eastern Europe, Mediterranean, & Central Asian Countries Dubai (UAE) Serving Middle East & Africa
  20. 20. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.20 Key learnings • HP has a very dynamic portfolio and competes successfully in a huge number of markets • HP‘s Supply Chain supports the business with innovative network designs for better business outcomes
  21. 21. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Private. Thankyouforyourattention! Volker Schmitz Director, Supply Chain Operations HP EMEA

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