Supply Chain Strategies
Integrated Supply Chain Management
This paper shall discuss the concept of supply chain strategies of Hewlett-Packard organization. Strategic planning and modeling (SPaM) is the Hewlett-Packard (HP) supply chain planning, analysis, and modeling system. “Hewlett-Packard's strategic planning and modeling (SPaM) team refined an approach using true optimization coupled with scenario analysis, selectively focused on the most critical parameters of the design equation, and used this approach to solve complex supply chain design problems for HP's imaging and printing group” (Laval et al., 2005, p. 238). This paper discusses Hewlett-Packard supply chain strategy and development and offers my opinions on the effectiveness of this strategy. Hewlett-Packard operations takes place in seven different business segments: Enterprise Storage and Servers, HP Services, Software, Personal Systems Group, Imaging and Printing Group, HP Financial Services and Corporate Investments (Laval, Feyhl, & Kakouros 2005). The supply chains while being similar in strategy is a separate entity due to the differentiation in products and services offered by the total supply chain. While the corporation’s system is in an organizational form with each segment horizontally presented to the others their supply chains are, of a necessity, integrated separately by business segment and only then into an overall supply chain. This last integration of the supply chain is to summarize the other supply chains for the senior level managers of the supply chain for strategic planning. Hewlett-Packard does not confine its supply chain strategy to developing one massive supply chain model that will fit all situations, as they believe that these huge documents are unwieldy and time consuming. Furthermore, a massive amount of information presented is not critical to the system and decision-making. SPaM was developed as an internal consulting team to support senior level decision making through operation research (OR) and quantitative modeling. These teams created several OR models which are adapted to individual supply chains within the organization; they are much faster in solving problems due to their elimination of unnecessary information and their ability to focus on just the sectional supply chain and decision-making process. Corporations as large as HP have thousands of required parts for their different product lines and hundreds if not thousands of suppliers. In managing these suppliers, HP only manages down to the tier one level of the supply chain and the tier one companies manages all other suppliers. Companies as large and powerful as HP have no reason to use sequential or local supply chains, as they are a truly global organization and manage only their relationships with their partners in the tier one supply chain. Hewlett-Packard due to its size and longevity has developed a truly rationalized and integrated supply chain. Hewlett-Packard distribution system uses many distribution types’ air, sea, and trucks outsourced to their partners. Their distribution system of partners includes the following: • “Retailers that sell products to the public through their own physical or Internet stores. • Resellers that sell products and services, frequently with their own value-added products or services, to targeted customer. • Distribution partners that supply our solutions to smaller resellers with which we do not have direct relationships. • Independent distributors that sell our products into geographies or customer segments in which we have little or no presence” (Laval, Feyhl, & Kakouros 2005, p.241). Organizations as large as HP must have communication between all of the integrated partners in each business segment as well as with the managers of the overall supply chain. Hewlett-Packard’s supply chain has several information system in use that helps integrate the...
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