Hewlett Packard

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Hewlett Packard

• Corey Baker
• Patrick Lowry
• Andrew St. Pierre
• Stephanie Warner

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History of Hewlett Packard

• Founded January 1, 1939 in Palo Alto, California
• Currently Ranked 1 Globally in Pocket PCs and
  Notebook Computers
• Year 1939 Revenue- 5369
• Employees- 2
• Year 2002 Revenue- 56.6 Billion
• Employees- 141,000

William R. Hewlett
David Packard
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HP Production Facilities

• Headquarters in Houston, TX
• Geneva, Switzerland
• Singapore
• Manufacturing Facilities located in 17 different
  countries and 12 US States
• Printer Production Facility located in Nashville
  and Memphis, TN
• HP Currently owns or leases 69,000,000 square
  feet of space world wide!!!

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Map of Major Operations
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Where to Buy HP Products

• Major Retailers Office Depot
• Best Buy
• Staples
• CompUSA
• Circuit City

• Buy Direct at www.hpshopping.com
• Online Retailers Amazon.com
• Computers4sure.com
• JandR.com

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HP 3PLS

• TNT Logistics North America
• Provides HP with inbound transportation and
  warehouse replenishment since 1999
• Auto- replenishment warehouse inventory
  management system enables 12,000 orders to be
  picked each month
• HP receives over 2,500 parts from 180 global
  suppliers
• TNT has dedicated specialty network to supply
  printer parts to the Nashville manufacturing
  facility

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Market Strategy-Consumer and Small Business

• Strategy varies by customer segment.
• Consumer portion adheres to retail led approach,
  computers are sold by retailers such as Wal-Mart,
  CompUSA, and Radio Shack.
• Small business strategy also partner-led. Uses
  resellers and agents as main focus. Also use
  sales by companies web site. Web site sales are
  becoming bigger and bigger.

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Market Strategy-Enterprise

• Enterprise strategy- ranges from large
  outsourcing deals, to pure RFP-type deals, where
  the customer may simply want to purchase 5,000
  PCs.
• Were in there with the total HP solution, were
  not just selling HP PCs, but the full gamut of
  HPs products and solutions into the
  marketplace. Jim McDonnell, VP of
  marketing and sales for HPs personal systems
  group.

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HP-Compaq Merger

• 2000 PC Market Share- Pre Merger
• Compaq 13.1
• Dell 11.5
• HP 7.8
• IBM 7.4
• 2004 PC Market Share- Post Merger
• Dell 17.9
• HP 15.8
• IBM 5.9

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Customer Base

• Small Businesses
• Large Corporations
• Individuals

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Supply Chain

• 40 separate geographical and product-line systems
  were honed into five generic, optimal supply
  chain models based on common attributes.  This
  strategy allows each of HP's four business groups
  the ability to use the model(s) that best fit its
  processes by product.

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Supply Chain

• HP's five (5) highly optimized supply chain
  models
• No / low touch contract manufacturing delivers
  goods directly from the manufacturer to
  customers, with no intervention from the
  distribution channel.
• Vertically integrated, high volume  requires
  only minor localization in certain regions. For
  example, a printer may need a locally appropriate
  power cord to be added to the configuration
  before shipment.
• Direct configure-to-order allows organizations
  to accept sales orders directly from customers,
  creating the product to meet the customers
  specifications as it is assembled.
• Value added systems and solutions supports
  complex, highly configurable products the types
  of goods that businesses expect to have
  configured expressly for their needs, such as
  infrastructure solutions, servers, and high-end
  printer products.
• Services logistics  provides spare parts for
  service organizations they require an
  understanding of the demand for parts and their
  stocking requirements, such as location and
  frequency.

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HPs Four Business Units

• Enterprise Systems Group (ESG) focuses on
  providing the key technology components of
  enterprise IT adaptive infrastructure solutions
  to increase business agility.  This group
  includes enterprise servers, storage, and
  management software.
• Imaging and Printing Group (IPG) maintains HPs
  role as the leading provider of printing and
  imaging solutions for business and consumer use,
  as well as digital imaging and digital
  publishing.  IPG includes printer hardware,
  digital imaging devices such as cameras and
  scanners, as well as industrial-sized printers
  that HP acquired through its 2001 purchase of
  Indigo.
• HP Services (HPS) delivers a premier global IT
  services team.  It offers a portfolio of services
  to help customers realize and maintain measurable
  business value from IT investments.
• Personal Systems Group (PSG) focuses on
  supplying simple, reliable, and affordable
  personal-computing solutions and devices for home
  and business use this group includes desktop
  PCs, notebooks, workstations, thin clients, smart
  handhelds, and personal devices and emerging
  technologies.

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A View Inside HPs Real Time Logistics and
Distribution Processes.

• One Global Instance
• 170,000,000 supply chain events
• Queried every 3.7 seconds
• Order details on 26,000 customers
• 130 countries
• 241 transportation carriers
• 391 Plants
• 1,900 suppliers

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Supply Chain Savings Since Merger with Compaq

• Manufacturing Area Savings in Millions
• Logistics 160
• Mfg and Labor Overhead 169
• Systems and Programs 115
• Subtotal 444

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Global Product Line

• Approximately 200,000 products
• Product refresh cycle
• -Printers of 3 to 7 months
• - PCs of 4 to 7 months
• -Workstations of less than 12 months
• -Supercomputers of 36 months or less

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Global Product Line cont

• 100,000 suppliers
• More than 60 outsourced manufacturing
• 60 collaborative design content

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Key Chain

• What is it?

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Real-Time Management

• What is it?
• Minimization of time elapsed between input and
  response
• Benefits
• Enable Powerful New Applications
• Adapts Quickly to Change
• Improves Business Execution
• Realize Cost Savings

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HP Information Systems

• HPs main information system is Microsoft Office
  SharePoint, which supports document approval,
  publishing, and versioning processes.
• SharePoint also integrates well with Microsoft
  Office System desktop applications including
  Microsoft Office InfoPath for streamlined
  document creation, and Microsoft BizTalk which
  enables application-to-application workflow .

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HP Information SystemsBenefits

• Leverage existing assets and capabilities
• Better business processes
• Document efficiency and consistency
• Faster time to solution
• Greater return on IT investments

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Transportation

• During the last decade, HP has decreased reliance
  on air cargo while increasing use of ocean
  freight. This saves considerable amounts of
  energy, since ocean transport is many times less
  energy intensive than air transport.
• By packing products more densely on each shipping
  pallet, or bulk-packing, HP can fit more
  products into a shipping container, reducing the
  total number of trips.

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References

• http//h71028.www7.hp.com/enterprise/downloads/PLM
  _Presentation.pdf
• http//h71028.www7.hp.com/enterprise/downloads/Rea
  ltimeCollabSCM.pdf
• http//h71028.www7.hp.com/ERC/downloads/ZLISUPCHSB
  .pdf
• An analysis of HPs future strategy
  http//www.osnews.com/story.php?news_id9810
• Dell to HP Catch Me if You Can
  http//www.macnewsworld.com/story/21546.html
• Streamlining complexity through points of common
  leverage http//h71028.www7.hp.com/enterprise/cach
  e/9566-0-0-225-121.html
• Hps four global business groups
  http//h71028.www7.hp.com/enterprise/cache/9560-0-
  0-225-121.html