Supply Chain

Initiatives at

Hewlett-PackardGROUP # 8

PGP13024 GAURAV SINGH

PGP13043 RAJNEESH KUMAR

PGP13061 VATSAL CHAUHAN

PGP13067 AJEET SINGH

PGP13082 BLESSEN MATHAI

PGP13112 SAHIL DHINGRA

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

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

HP- Supplier base & Chain

HP’s 4 phase supplier management

system

Introduction Assessment ValidationContinual

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

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.

Integration initiative among members

Plan Procure Deliver

HP Receiving

InvoiceStandardized

Electronic Data

Interchange(EDI)

messaging and

collaboration

methodology

between HP & Partners

One standard, used

everywhere

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

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

Optimization across HP

Leveraging scale through

standardization

Warranty node reduction

Process & IT Optimization at HP

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