Hp Deskjet Printer Supply Chain Case

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Pages: 7

Category: Business and Industry

Date Submitted: 02/07/2011 04:50 PM

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Table of Contents

Executive Summary

Issue & Issue Analysis


Recommendation & Implementation

Monitor & Control



Executive Summary

As Manager of Special Projects, Material Department at HP Vancouver division, it is my decision to move towards to postponement of Product Differentiation.

The decision regarding the postponement strategy is of very strategic importance to future growth of HP. I recommend full review of inventory management system for desk jet printers & design a strategy to implement processes leading to postponement of product differentiation, in order to reduce inventory imbalance & satisfy customer demands.

The short term strategy will include recalculation of safety stock, reorder points & reorder quantity, Identification of certain models that needs to discontinued and improvement in demand forecasting system.

New Key Performance indices (KPI’s) reflecting performance of entire supply chain will be developed.

We will have to design the product & realign the manufacturing & distribution activities so that customization step leading to product variation occur at most efficient point in the supply chain, giving lowest supply chain cost . In long term the design of printers & subsequently manufacturing process will be changed to enable installation of power supply unit at final DC levels. We would be moving towards Design for Localization.

Finally possibility of developing universal power supply will be explored.

A time line will be setup to implement postponement strategy & development of universal power supply.

This report will be used for further discussion with Operation Manager & Worldwide Distribution Manager

Issue & Issue Analysis

Inventory Imbalance & Customer Service Levels

The European Distribution center was overflowing with inventory of printers for which they had no customers, while inventory of in...