Supply Chain Evolution at Hp

Topics: Supply chain management, Hewlett-Packard, Inventory Pages: 2 (700 words) Published: July 28, 2011
It has been said that Hewlett Packard (HP) has been ahead of its peers in giving back to the community, showing concern for work/life balance, and acting to preserve the environment long before it was the “in” thing. Currently, HP is the largest technology company in the world, shipping 3.5 products per second. What supply chain models will help us grow faster?

From the development of SPaM, HP realized other areas within their supply chain that needed improvement. With the possibilities of suppliers being late with their shipments, or the incoming materials being flawed, production process breaking down, etc. It is imperative that HP created a team to deal with these supply chain problems before they became a reality within its organization. Some of the strengths of the supply chain used by HP was in using WINO, HP found that demand uncertainties impacted inventory greatly, which prompted them to consider redesigning products and processes to lessen the impact of demand uncertainties on its supply chain performance. Also the analysis was effective in identifying opportunities for operational improvements. Because of the systems used it created a high payoff in the forecasting processes, the realignment of the manufacturing and distributing strategies and redesigning of the product and processes.

How do we match our channel structure to customer requirements?
The fact that HP are working with its dealers is a major step in the continued success of HP and is key in determining what customers want. They have worked very close to improve the performance of the overall supply chain. HP should continue to utilize SPaM’s supply chain modeling. They have increased customer satisfaction, production innovation and differentiation. Based on the number of projects HP had, it revealed that demand uncertainty resulted from forecast errors and was the key source of inefficiency in the supply chain. With HP expanding into distributing channels...

References: Lee, H. L., & Billington, C. (1995). The Evolution of Supply-Chain-Management Models
and Practice at Hewlett-Packard. Interfaces, 25(5), 42-63. Retrieved from EBSCOhost
Woraphan Atikomtrirat. (2011). HP Supply Chain. Retrieved from
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