Accelerating the Profitability of Hewlett-Packard's Supply Chains

Abstract

Hewlett-Packard (HP) developed a standard and common process for analysis coupled with advancement in inventory optimization techniques to invent a new and robust way to design supply-chain networks. This new methodology piloted by HP's Digital Imaging division has received sponsorship from HP's Executive Supply- Chain Council and is now being deployed across the entire company. As of May 2003, a dozen product lines have been exposed to this methodology, with four product lines already integrating this process into both the configuration of their new-product supply chains and the improvement of existing-product supply chains. The team will highlight the application of these new capabilities within HP's Digital Camera and Inkjet Supplies businesses. The realized savings from these first two projects exceeds $130 million.