HP's supply chain: An interview with a Procurement and Supply Planner

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HP's supply chain: An interview with a Procurement and Supply Planner

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Abstract

The following report was made in the wake of an interview with Thomas Gobillot, Procurement and Supply Planner at HP in Grenoble in September 2007.

The initial focus will be on the HP enterprise and the organization of its supply chain. Then the strategic choices made by HP and the craft of "Procurement and Supply Planner" will be understood by tracing the operation of the supply chain from purchase of components to delivery of finished products to customers. Finally, the focus will be on HP's commitment in terms of social and environmental responsibility in the supply chain.

Hewlett-Packard, based in Palo Alto (Calif.), was founded in 1939 and is now a leading global provider of desktop computers, laptops, servers and printers with a turnover of $90 billion. HP has customers in 170 countries and employs over 150,000 people worldwide.

HP is organized into large regions (EMEA - Europe Middle East and Africa) and divisions by product family: - The PSG division PSG (Personal System Group), represents about 40% of the sales business and includes the "desktops" (personal computers), monitors, "handhelds" (PDA), the notebook PCs (laptops) as well as "thin clients" (small PCs ); HP is number 2 worldwide in these markets.

Another product division is the IPG division, "Image Print Group", which accounted for 30% of turnover and includes inkjet laser printers, commercial printers, printing supplies as well as photography and digital entertainment; HP is number 1 worldwide in these markets.

In the TSG Division or the "System Technology Group which represents 20% of the revenues and consolidates servers and storage systems for professionals, HP is number 1 worldwide.

The main competitors are Dell, HP and Acer. With HP, they share the top three worldwide positions on these products.

Tags: HP – company history, HP's supply chain, position of HP products worldwide

Introduction
The concept of corporate culture
1. Corporate culture
2. Business culture
3. Regional culture
How can we observe culture?
1. Myths
2. The craft
3. Values
4. Taboos
5. The symbols
6. Rites
7. Languages
8. Dress codes
Corporate culture: management, functions and limits
1. Culture and management
2. The limits of corporate culture
Conclusion

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[...] The general organization Divisions within PSG and IPG, HP teams are involved in the supply chain that are organized according to the final customer ("consumers" for the market of home users and "commercials" for the corporate market) and product type ( notebook, desktop . For example within the PSG division teams these were dedicated to "thin client business" or "desktops consumers". We are particularly interested in the supply chain division of PSG but the supply chain of the other divisions is organized the same way. [...]

[...] Concrete environmental efforts that go along with a cost reduction could take different forms: - Target of achieving 80% of China Transport / Netherlands by boat (less polluting and less expensive) - Special packaging and delayed differentiation (without PC power cable, in efficient packaging volume) in order to decrease the volume and weight and then airlifted to reduce the number of air travel Projects to upgrade the supply chain As noted earlier, HP wants to drive up the supply chain so look at most of the transport management throughout the supply chain. HP will also continue up to the postponement, for example with the addition of instructions for use at the last moment. [...]

[...] Two platforms are (or hub) based logistics in the Netherlands and the Czech Republic Flextronics owned and managed by a subcontractor and are used in the logistics supply chain The course of the supply chain, strategic choices and the trade of "Procurement Supply Planner" Thomas Gobillot is "Procurement Supply Planner" for thin clients into 'commercials' for a year and a half. He is responsible for procurement and supply chain management of 10 models of thin clients for companies. Weekly forecasts of command are sent to suppliers, through a shared ERP based on current inventory levels in the logistics platforms and sales forecasts. [...]

[...] The three main functions in the management teams of the supply chain are the functions of buyers, "Procurement Supply Planner" and sales forecasts. We have seen that the teams were organized by product with the exception of a few cross trades as those in charge of supply of Tier 1 suppliers of components used by all products (memory, hard drives . these are "commodity planners." Teams supply chain is also related to the finance department: - To transport by air a product that was originally to be transported by ship, "Finances" must agree (check margins). [...]

[...] HP also manages the supply of components suppliers. HP does not buy these components (memory, keyboard . but chooses the component suppliers and negotiates prices for Tier 1 suppliers (HP globalization in world negotiations for best price). The "Procurement Supply Planner" manages the inventory level of components for Tier 1 suppliers including Czech suppliers that operate "make to order". The tier 1 supplier buys the components to a standard price but often receives HP back margins of the suppliers of components based on quantities ordered. [...]

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