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Best Practices in HP's Supply Chain Visibility
Chris Kanning Director, Supply Chain Collaboration Solutions Global Operations Supply Chain
© 2005 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice
Content
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HP Today HP’s Supply Chain HP’s Supply Chain Visibility Examples Discussion
HP today
• • • • • •
Fortune 11 company, with $89 billion annual run rate $7 billion in organic growth in FY05 #1 or #2 in virtually every market, customer segment and region >21,000 patents, 650 products introduced last year Growing profits in every business with better balance $15 billion in cash, generating $8 billion in cash from operations annually
HP Supply Chain
HP Supply Chain
A fast, flexible, cost-efficient link between our product portfolio & our customers
Broadest portfolio of IT products/ services in the world Broadest customer base in the technology industry
World’s Largest IT Supply Chain ($51B)
• • • • 32 manufacturing plants 88 distribution hubs 700 suppliers 119 logistic partners
• >650 intro 2004 • 200,000 SKUs • 25,000 patents
• 1 billion customers • 178 countries • Direct & indirect
Supply Chain Strategy Overview
Demand Shaping
Functional Supply Chain Excellence
Order Fulfillment Logistics Planning Manufacturing Procurement
Design for Supply Chain
No-Touch Low-Touch Configure-To-Order High-Value Solutions Service Design/R&D
Direct
Customer
Consumer SMB Public Sector Enterprise
Indirect
Supply Chain Visibility
Visibility solutions
CM or ODM Tier 2 Supplier
HP Regional DC or Factories Direct/Indirect Customer Site
Tier 1 Suppliers
3PL Hub
Benefits to HP: • Reduced inventory-related costs • Improved material availability; improved Total Customer Experience (TCE)
Collaboration Matrix / Solution Strategy
optimized execution automated execution what if simulation near real time event mgmt operational reporting...