This document discusses HP's global supply chain operations. It notes that every 60 seconds, HP's supply chain delivers 120 PCs and 100 printers to customers. HP uses a variety of manufacturing locations and transportation methods to supply products efficiently. This includes using ocean freight gateways in Rotterdam, Piraeus, and Dubai to transport products from manufacturing hubs in Asia to markets in Europe, the Middle East, and Africa. The supply chain aims to optimize costs and inventory levels while meeting business needs.

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. © 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. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
HP Innovation

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. © 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. © 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. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
LeadershipbySupplyChain

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. © 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. © 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. © 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. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
12

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. © 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 Europe
SEA: 30 days
Costs low
• Standard entry
point for Sea
shipments:
Rotterdam / Dubai
• New opportunities:
Adding Piraeus as
an entry point for
Europe!

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 Dynamics
Supply Chain Costs Turn-around Time

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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. © 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. © 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. © 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. © 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. © 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