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Accelerating the Profitability of Hewlett-Packard's Supply Chains

Author

Listed:
  • Corey Billington

    (Global Procurement Services, Hewlett-Packard Company, 3000 Hanover Street, Palo Alto, California 94304-1185)

  • Gianpaolo Callioni

    (Strategic Planning and Modeling, Hewlett-Packard Company, 3000 Hanover Street, Palo Alto, California 94304-1185)

  • Barrett Crane

    (Digital Imaging, Hewlett-Packard Company, 3404 East Harmony Road, Fort Collins, Colorado 80528)

  • John D. Ruark

    (Optiant, Inc., 4 Van de Graaff Drive, Burlington, Massachusetts 01803)

  • Julie Unruh Rapp

    (Inkjet Supplies, Hewlett-Packard Company, 1000 NE Circle Boulevard, Corvallis, Oregon 97330)

  • Trace White

    (Inkjet Supplies, Hewlett-Packard Company, 1000 NE Circle Boulevard, Corvallis, Oregon 97330)

  • Sean P. Willems

    (School of Management, Boston University, 595 Commonwealth Avenue, Boston, Massachusetts 02215)

Abstract

Hewlett-Packard (HP) developed a standard and common process for analysis coupled with advancement in inventory optimization techniques to invent a new and robust way to design supply-chain networks. This new methodology piloted by HP's Digital Imaging division has received sponsorship from HP's Executive Supply- Chain Council and is now being deployed across the entire company. As of May 2003, a dozen product lines have been exposed to this methodology, with four product lines already integrating this process into both the configuration of their new-product supply chains and the improvement of existing-product supply chains. The team will highlight the application of these new capabilities within HP's Digital Camera and Inkjet Supplies businesses. The realized savings from these first two projects exceeds $130 million.

Suggested Citation

  • Corey Billington & Gianpaolo Callioni & Barrett Crane & John D. Ruark & Julie Unruh Rapp & Trace White & Sean P. Willems, 2004. "Accelerating the Profitability of Hewlett-Packard's Supply Chains," Interfaces, INFORMS, vol. 34(1), pages 59-72, February.
    • Handle: RePEc:inm:orinte:v:34:y:2004:i:1:p:59-72
    DOI: 10.1287/inte.0103.0054
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    References listed on IDEAS

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    1. Stephen C. Graves & Sean P. Willems, 2000. "Optimizing Strategic Safety Stock Placement in Supply Chains," Manufacturing & Service Operations Management, INFORMS, vol. 2(1), pages 68-83, June.
    2. Grace Lin & Markus Ettl & Steve Buckley & Sugato Bagchi & David D. Yao & Bret L. Naccarato & Rob Allan & Kerry Kim & Lisa Koenig, 2000. "Extended-Enterprise Supply-Chain Management at IBM Personal Systems Group and Other Divisions," Interfaces, INFORMS, vol. 30(1), pages 7-25, February.
    3. Stephen C. Graves & Sean P. Willems, 2003. "Erratum: Optimizing Strategic Safety Stock Placement in Supply Chains," Manufacturing & Service Operations Management, INFORMS, vol. 5(2), pages 176-177.
    4. Bruce C. Arntzen & Gerald G. Brown & Terry P. Harrison & Linda L. Trafton, 1995. "Global Supply Chain Management at Digital Equipment Corporation," Interfaces, INFORMS, vol. 25(1), pages 69-93, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Junmin Shi & Yao Zhao, 2010. "Technical note: Some structural results on acyclic supply chains," Naval Research Logistics (NRL), John Wiley & Sons, vol. 57(6), pages 605-613, September.
    2. John M. Bossert & Sean P. Willems, 2007. "A Periodic-Review Modeling Approach for Guaranteed Service Supply Chains," Interfaces, INFORMS, vol. 37(5), pages 420-436, October.
    3. Steffen T. Klosterhalfen & Stefan Minner & Sean P. Willems, 2014. "Strategic Safety Stock Placement in Supply Networks with Static Dual Supply," Manufacturing & Service Operations Management, INFORMS, vol. 16(2), pages 204-219, May.
    4. de Kok, Ton & Grob, Christopher & Laumanns, Marco & Minner, Stefan & Rambau, Jörg & Schade, Konrad, 2018. "A typology and literature review on stochastic multi-echelon inventory models," European Journal of Operational Research, Elsevier, vol. 269(3), pages 955-983.
    5. John J. Neale & Sean P. Willems, 2009. "Managing Inventory in Supply Chains with Nonstationary Demand," Interfaces, INFORMS, vol. 39(5), pages 388-399, October.
    6. Salal Humair & Sean P. Willems, 2006. "Optimizing Strategic Safety Stock Placement in Supply Chains with Clusters of Commonality," Operations Research, INFORMS, vol. 54(4), pages 725-742, August.
    7. Gihan S. Edirisinghe & Thamer Almutairi, 2023. "Multi-Echelon Inventory Optimization for Practitioners: a Predictive Global Sensitivity Analysis Approach," SN Operations Research Forum, Springer, vol. 4(2), pages 1-20, June.
    8. Manisha Seth & D.P. Goyal & Ravi Kiran, 2015. "Development of a Model for Successful Implementation of Supply Chain Management Information System in Indian Automotive Industry," Vision, , vol. 19(3), pages 248-262, September.
    9. Fichtinger, Johannes & Chan, Claire (Wan-Chuan) & Yates, Nicola, 2019. "A joint network design and multi-echelon inventory optimisation approach for supply chain segmentation," International Journal of Production Economics, Elsevier, vol. 209(C), pages 103-111.
    10. Stephen C. Graves & Tor Schoenmeyr, 2016. "Strategic Safety-Stock Placement in Supply Chains with Capacity Constraints," Manufacturing & Service Operations Management, INFORMS, vol. 18(3), pages 445-460, July.
    11. Ghadimi, Foad & Aouam, Tarik, 2021. "Planning capacity and safety stocks in a serial production–distribution system with multiple products," European Journal of Operational Research, Elsevier, vol. 289(2), pages 533-552.
    12. Jason Amaral & Dorothea Kuettner, 2008. "Analyzing Supply Chains at HP Using Spreadsheet Models," Interfaces, INFORMS, vol. 38(4), pages 228-240, August.

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