Hewlett Packard - Supply Chain Management

Hewlett Packard - Supply Chain Management

Introduction

About HP

HP (short for Hewlett Packard) is a U.S. based multinational I.T. Company, with its headquarters located at Palo Alto - California. It is a vendor of products, solutions, software, and technology; it also provides services to consumers, businesses (both small and medium - SMBs) and large organizations. Its clientele includes customers in the government, health and education sectors.

Hewlett Packard was formed in a one-car garage (Dave's house) with an initial investment of $ 538 by two electrical engineering graduates, W.R. "Bill" Hewlett and Dave Packard. HP is the leading computer manufacturer globally and has been a leader since 2007, fighting off against a tough challenge posed by the Chinese manufactured Lenovo. Its expertise focus is on manufacturing and developing computing, designing software, networking hardware, data storage as well as delivering services.

The key product lines of HP include PC devices, networking products, industry standard servers, and enterprise, associated storage devices, software and a variety of printers, in addition to other imaging products. It markets the products to households, businesses (SMBs) as well as enterprises directly, and also via online distribution, consumer electronics outlets, software partners, office supply retailers, and major technology dealers. On top of that, it has excellent services and consulting businesses for its products as well as its partner products. It is the world's largest PC retailer. (HP, 2013)

Supply chain management

A supply chain is generally made up of all the parties concerned (directly or indirectly) in satisfying a customer's request. It not only consists of the suppliers and producer, but also includes warehouses, transporters, sellers and customers as well. In any organization, take for example a producer, all tasks associated with receiving and fulfilling a customer demand are included in the supply chain. These tasks (or functions) include, but are not restricted to, innovation and product development, distribution, operations, marketing, finance, along with customer service.

The supply chain is dynamic in nature, involving a steady stream of information, funds, and product between different stages (component or raw material suppliers, manufacturers, wholesalers, distributors, retailers and customers). It is not necessary for each stage to be present in a supply chain; the suitable design of the supply chain depends on both, the need of the customer as well as the role of the stages concerned. (Peter Meindl, 2004)

Discussion

For more than a decade, HP has assessed the impacts of supply chain on design decisions. Its “DfSC” (short for 'design for supply chain') is an organized process (capable of being repeated) for engineers and product development teams across the company. It enables Hewlett Packard to measure the result of its decisions over time (which includes the production phase, the 'end-of-life' phase, and even the pre-launch phase of a product's lifecycle), on its supply chain partners consisting of suppliers, retailers, logistics and manufacturing service providers, resellers and consumers (end-customers).

With the help of this design (DfSC), HP is able to steer clear of decisions that advance inventory efficiency by increasing risks for ...