Steelwedge Software

Steelwedge Software

3 SCM best practices and agility lessons I learned from HP

Posted: 01 Jun 2012 11:39 AM PDT

[Ed. note: For other summaries from the Gartner Supply Chain Summit, see last week's Supply Network Design: Six Key Steps blog post] Every 60 seconds, Hewlett-Packard delivers four servers, 120 PCs and 100 printers to their customers. That’s according to Tony Prophet, the senior vice president of operations in HP’s Personal Systems Group, who spoke at the Gartner Supply Chain Executive Summit last week. During his keynote address, Prophet addressed how HP has successfully delivered these products using the supply chain management best practices the company began to implement in 2006. Prophet encourages all companies to: Focus on integrating procurement Prophet likened hardware companies to trading companies because HP must buy commodities in bulk. The company can then build the products themselves or sell the commodities to a third-party vendor who builds the product and sells it back to HP. The company does this to improve their product margins: the more components the company buys, the cheaper the price per component. However, before 2006, all of HP’s different divisions (Notebooks, Desktops, Printers, Servers, etc) worked separately. Each procurement team bought the commodities their division needed but never checked with other departments to look for similar component needs. By integrating these processes, HP was able to see impressive reductions in costs ranging between 20% and almost 50% depending on the commodity.… Read the rest

Posted by computer at 9:09 AM  

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