Supply Chain Evolution at Hp Essay
What supply chain models will help us grow faster?
From the development of SPaM, HP realized other areas within their supply chain that needed improvement. With the possibilities of suppliers being late with their shipments, or the incoming materials being flawed, production process breaking down, etc. It is imperative that HP created a team to deal with these supply chain problems before they became a reality …show more content…
What supply chain structures would help us reduce costs further at the same time offer greater product variety to our customers.
WINO (now SCAT) is still a structure that HP should utilize in reducing costs. According to Lee, H. L & Billington, C. (1995), HP extended WINO to quantify how much inventory could be reduced at two locations, while maintaining the same service target for customers and the results were successful. Incorporating their supply chain with E-commerce is what will reduce costs further and increase customer strength. Customers want right now products.
HP going forward Going forward Hp has recognized to further reduce cost, increase consumer strength, manage demand and increase profits, developing an internet store is the next thing to do. HP has sold the majority of its consumer products through traditional retail channels and to address its customers’ growing desire to order products via the Internet HP listened. The strategy was to find a logistics service company that would help them strategize and quickly implement the new Internet sales channel with minimal resource utilization and risk. HPshopping.com asked FedEx to develop a comprehensive solution that would manage the entire process from order management to order fulfillment.