Brief overview of the Supply chain initiatives at HP. Done as a study project.

1. Supply Chain
Initiatives at
Hewlett-Packard GROUP # 8
PGP13024 GAURAV SINGH
PGP13043 RAJNEESH KUMAR
PGP13061 VATSAL CHAUHAN
PGP13067 AJEET SINGH
PGP13082 BLESSEN MATHAI
PGP13112 SAHIL DHINGRA

2. DFSC – Design for Supply Chain
Design For Supply Chain
Program
Effective
decision
making
during
product
development
Improving
financial
performance
across Supply
chain
Methodology
for design
decisions
HP evaluated the supply
chain impacts of design
decisions for 10 years
Innovation+ unified set
of technologies,
methods & trainings
Benefits/Six pack view of DFSC Benefits/Six pack view of DFSC
..
Variety control
Logistics Enhancement
..
Commonality & Re-use
Postponement
..
Tax & Duty reduction
Taxback Facilitation

3. Inception of DfSC at HP
Combined team
created an
innovation for HP
called DfSC
Strategic Planning
& Modelling (SPaM)
Product
Generation
Services (PGS)
 Internal Consulting team
that worked with
engineers & management
scientists
 Supported strategic
decision making through
quantitative analysis
 Worked with R&D
 Building long term
capabilities with
engineering
organizations

4. HP- Supplier base & Chain

5. HP’s 4 phase supplier management
system
Introduction Assessment Validation
Continual
Improvement
 HP conducts
preliminary risk
assessment
 Suppliers
complete self
assessment
 HP review and
feedback
 Onsite Audits
 Corrective
action plans, if
required
 Follow-up audits
 Identify key
education areas
 Build suppliers
capability in key
areas by building
their skills &
expertise

6. Maintaining Upstream/Downstream
HP avoids decisions that improve inventory efficiency by
pushing significant risks onto suppliers, or reduce material costs
but cause warranty costs to skyrocket
The people who see the downstream impacts of design-
warehouse managers, the planners – are far from the product
designers. The DfSC program matches the product designers
with the expertise from the field.
Supply chain manager’s job at HP is to match customer service
level requirements with supplier capabilities .HP uses
GA(Geographic Analytics) to display historical time around
times of particular locations and “SLA hotspot” maps to identify
areas where SLAs are frequently missed.

7. Integration initiative among members
Plan Procure Deliver
HP
Receiving
Invoice
Standardized
Electronic Data
Interchange(EDI)
messaging and
collaboration
methodology
between HP & Partners
One standard, used
everywhere

8. Transportation & Warehousing
 HP’s Near shoring Strategy
• Regionalized global supply chain
• Rise in transportation cost due to rise in oil prices
• Labour costs
• Need for more unique products with short cycle times
• burden of multiple reorder points
 Resilient Supply Chain
• Delaying the final configuration of product in the SC till
more accurate demand info is available
• Manufacturing of ‘vanilla’ printers
• Concept of postponement
• Once order is received, HP adds that market’s power
supply, plug & language material

9. Geographic Analytics – game changer for HP
HP uses
GA(Geographic
Analytics) to
display historical
time around times
of particular
locations and “SLA
hotspot” maps to
identify areas
where SLAs are
frequently missed

10. Optimization across HP

11. Leveraging scale through
standardization

12. Warranty node reduction

13. Process & IT Optimization at HP

14. E-Initiatives
 Sharing of critical business
events to be agile and
adaptive
• Real time integration
• Enterprise integration
strategy
• HP introduces online e-
commerce channel in
collaboration with FedEx
• Integrated HP’s order
management &
inventory management
with FedEx