IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v38y2008i1p51-60.html
   My bibliography  Save this article

Procurement Risk Management (PRM) at Hewlett-Packard Company

Author

Listed:
  • Venu Nagali

    (The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070)

  • Jerry Hwang

    (The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070)

  • David Sanghera

    (The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070)

  • Matt Gaskins

    (The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070)

  • Mark Pridgen

    (The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070)

  • Tim Thurston

    (The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070)

  • Patty Mackenroth

    (The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070)

  • Dwight Branvold

    (The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070)

  • Patrick Scholler

    (The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070)

  • Greg Shoemaker

    (The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070)

Abstract

Supply chain risks related to product demand, component cost, and availability uncertainties can have a significant impact on a manufacturing company's revenue and profits. The Procurement Risk Management (PRM) Group at Hewlett-Packard (HP) developed and implemented a mathematical model, business process, and software to measure and manage supply chain risks on the procurement side. In 2006, the software-enabled business process helped HP to manage over $7 billion in spending; this resulted in material-cost savings of $128 million. Over the past six years, HP has realized more than $425 million in cumulative cost savings using the PRM approach.

Suggested Citation

  • Venu Nagali & Jerry Hwang & David Sanghera & Matt Gaskins & Mark Pridgen & Tim Thurston & Patty Mackenroth & Dwight Branvold & Patrick Scholler & Greg Shoemaker, 2008. "Procurement Risk Management (PRM) at Hewlett-Packard Company," Interfaces, INFORMS, vol. 38(1), pages 51-60, February.
    • Handle: RePEc:inm:orinte:v:38:y:2008:i:1:p:51-60
    DOI: 10.1287/inte.1070.0333
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.1070.0333
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.1070.0333?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. James Schummer & Rakesh V. Vohra, 2003. "Auctions for Procuring Options," Operations Research, INFORMS, vol. 51(1), pages 41-51, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yonatan Gur & Lijian Lu & Gabriel Y. Weintraub, 2017. "Framework Agreements in Procurement: An Auction Model and Design Recommendations," Manufacturing & Service Operations Management, INFORMS, vol. 19(4), pages 586-603, October.
    2. Edward Anderson & Bo Chen & Lusheng Shao, 2017. "Supplier Competition with Option Contracts for Discrete Blocks of Capacity," Operations Research, INFORMS, vol. 65(4), pages 952-967, August.
    3. Victor Martínez-de-Albéniz & David Simchi-Levi, 2009. "Competition in the Supply Option Market," Operations Research, INFORMS, vol. 57(5), pages 1082-1097, October.
    4. Di Corato, Luca & Moretto, Michele, 2016. "Selling real assets: the impact of idiosyncratic project risk in an auction environment," Working Paper Series 2016:9, Swedish University of Agricultural Sciences, Department Economics.
    5. Martinez de Albeniz, Victor & Simchi-Levi, David, 2007. "Competition in the supply option market," IESE Research Papers D/718, IESE Business School.
    6. Hua, Shengya & Liu, Jingchen & Cheng, T.C.E. & Zhai, Xin, 2019. "Financing and ordering strategies for a supply chain under the option contract," International Journal of Production Economics, Elsevier, vol. 208(C), pages 100-121.
    7. Sebastian Just & Christoph Weber, 2015. "Strategic behavior in the German balancing energy mechanism: incentives, evidence, costs and solutions," Journal of Regulatory Economics, Springer, vol. 48(2), pages 218-243, October.
    8. Mohammad Rasouli & Demosthenis Teneketzis, 2021. "Economizing the Uneconomic: Markets for Reliable, Sustainable, and Price Efficient Electricity," Sustainability, MDPI, vol. 13(8), pages 1-38, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:38:y:2008:i:1:p:51-60. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.