Hp Method of General Use

Supply Chain Network Strategy with SCOR

Author: Richard Freggi, Senior Supply Chain Architect, Notebook GBU, Hewlett-Packard Company richard.freggi@hp.com

Project team members: Ike Harris, Vice President, Notebook GBU Supply Chain (Executive Sponsor) Roger Bhalla, Director, Business Notebook Supply Chain (Active Sponsor) Richard Freggi, Senior Supply Chain Architect, Notebook GBU (Project Manager) Chris Church, Manager, Supply Chain Processes and Systems, Notebook GBU (PLAN) John Lord, Senior Manager, Strategic Sourcing, Notebook GBU (SOURCE) Mark Kidwell, Senior Manager, Notebook Supply Chain (MAKE) Rick Shan, Partner Manager, Notebook GBU (MAKE) Jeff Young, Manager, Global Airfreight Procurement (DELIVER) Henry Chiu, Senior Manager, Logistics, Notebook GBU (DELIVER) Jeff Cowell, Supply Chain Architect, Notebook GBU (Data analysis)

Abstract

HP’s Notebook GBU is the world leader in notebook PCs with well over 20% market share. To sustain its impressive growth, HP needs to evaluate the possibility of manufacturing in different geographical areas. We surveyed HP’s considerable in-house experience in Supply Chain network planning, and selected SCOR 8.0 as the basis of our analysis. This provided several benefits: - Easy data collection - Systematic Supply Chain analysis without need for complex statistical models - Easy evaluation of variants and ‘What If’ scenarios. Efficient communication with dozens of Stakeholders having different viewpoints Most important of all, the SCOR framework allowed us to convey the business choices and tradeoffs of different Supply Chain Networks, providing the basis for effective discussion and decision-making.

1 Problem Statement

The Supply Chain managed by HP’s Notebook Global Business Unit (GBU) must ensure prompt delivery of millions of Notebook PCs every month, worldwide. This includes Build-To-Stock and Build-To-Order products, with a mixed transport mode of air and sea, and the inclusion of value-added services such as...