The Clearly Identify The Company And Industry Business Essay

Introduction to the HP Company

The company was established in January 1, 1939, by William R. Hewlett and David Packard, two fresh electrical-engineering alumnae of Stanford University. It was the foremost of many technology companies to profit from the thoughts and hold up of engineering lecturer Frederick Terman, who founded the tough connection among Stanford and what finally emerged as Silicon Valley. The corporation recognized its status as a creator of stylish implementation. Its first client was Walt Disney Productions, which acquired eight audio oscillators to use in the making of its full-length dynamic film Fantasia (1940). During World War II the group urbanized goods for armed appliances that were vital as much as necessary to value Packard sketch exclusion, while Hewlett provided in the Army indicator unit. During the war the company worked with the Naval Research Laboratory to construct counter-radar technology and complex weapons shell fuses. HP offers excellence executive services and financing substitutes, and other for clients commerce and user consumers in the U. S. through HP Financial Services. It's devoted sales committee and sells its goods and services straight to its clients through telephone and online and clients contains large company, administration, healthcare, and education report, as well as small-to-medium businesses and individual customer's assets which divides its sales and marketing among these groups within geographic areas. United net profits during any of the last three economic years for No particular client accounted for more than 10% of HP's. Its controlled sales and marketing attempts are about the needs customers who are allowing the company to increase and develop its invention and marketing programs for exact customer groups is constant response from its customers.

Important topics of my report

Clearly identify the company and industry

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its merger transaction involving Compaq Computer Corporation on May 3, 2002

Define the supply chain and the role of your company in it

Supply chain management integrates the dealer, distributor, and consumer logistics obligations into one organized process. The supply chain is a compilation of physical entities such as manufacturing plants, distribution centers, conveyances, retail outlets, people, and information, which are linked through consumption. Supply chain management has been recognized as an important business element due to the fact that decreased time, as well as cost to the customer, will greatly contribute to their competitiveness within their perspective industry.

Supply chain management reduces product costs through the elimination of unnecessary steps and adds value to the customer service function by more closely managing the coordination among logistics providers and customers. It is primarily concerned with managing the company's integration with transportation and information providers as it defines and drives the requirements for both.

The ultimate purpose of supply chain management is to increase customer value while maintaining competitive prices. It is mostly concentrated on material and product sourcing, vendor evaluation, and purchasing.

Identify key issues in the supply chain, particularly for your company

HP is facing this supply chain issue head on. Last week, the firm announced plans to achieve a conflict-free supply chain by encouraging suppliers to earn certification as a Conflict-Free Smelter (CFS). HP is hoping to lead the industry in the use of conflict-free smelters and refiners, an important component in an ethical supply chain in the IT industry. HP also became the first IT company to publicly release its supply chain smelter list and seek independent review for its smelter identification process.


Discuss your company's strategy for dealing with its most important supply chain issue

We believe that higher labor and environmental standards lead to higher-quality products. They also protect our reputation and assure the continuity of our lines of supply by ensuring SER issues do not adversely affect a supplier’s production capability. The program creates efficiencies that can decrease cost and strengthens partnerships for HP. Suppliers often question whether they can meet HP’s SER standards and cost requirements. We believe that our sourcing needs should not result in nonconformances to our code or violations of the law. Lasting change takes time, however, as suppliers must not only build their management capability but also often challenge a prevailing culture.

Evaluate the effectiveness of your company's strategy in dealing with that issue

Supply chain and purchasing strategies save HP $1 billion since 2001. Every day, HP delivers 1.3 million inkjet cartridges, 110,000 printers, 75,000 personal computer systems and 3,500 servers. The company spends about $50 billion, or about 64% of its revenue, on supply chain activities. Another program, a supplier management process, has reduced the number of direct material suppliers 53% from 1,500 to 720.

Phase 1: 


Phase 2: 


Phase 3: 


Phase 4: 

Continual improvement

HP conducts preliminary risk assessment of suppliers. 

For risk factors see: Risk-based program. 

Suppliers identified as potential SER risks are prioritized for introduction to HP’s SER requirements.

SER requirements are confirmed in the HP Supplier contract. 

Supplier completes an SER agreement and a self-assessment for each factory manufacturing for HP. HP reviews the assessment and provides feedback, which often leads to ongoing dialogue. 

HP determines if the supplier is a priority for an onsite audit.

HP conducts on-site audits of selected sites. When audits reveal nonconformance with code provisions, we work with the supplier to establish a corrective action plan. 

After implementation, we re-audit (several times if needed) and verify that the nonconformance and its causes have been addressed.

We work with several organizations to identify key education areas, and we help suppliers build capability by acquiring the necessary skills, tools and expertise to continually improve. 

HP collaborates with NGOs throughout the world (China, Thailand, India, Eastern EU and Mexico) to work directly with workers and management on root causes of nonconformance.

Progress 2007

611 suppliers (911 sites) were risk assessed and engaged.

460 suppliers (697 sites) completed self-assessments.

HP conducted more than 150 initial and follow-up site audits of 106 suppliers in 2007.

HP audited 160 suppliers (including sub-tier) at 252 sites. 

242 corrective action plans are in progress between supplier and HP.

In China and Central Europe, HP has 1-2 year ongoing training courses for more than 50 key first and second tier suppliers in 2006. 

Held HP supplier forums in China, India, Mexico and Singapore with more than 150 supplier representatives in 2006.

Suggest what you think your company might do to improve that effectiveness even more

HP Design for Logistics program improves transport efficiency to reduce energy use and cost, by shifting product transport to more efficient methods, optimizing their distribution network, influencing transport providers to improve the environmental performance. HP Financial Services established relationships with some of the world’s largest and most reputable shipping companies, allowing HP to offer very economical pricing. HP has been cutting its operating costs since 2005 by removing several layers of management, phasing global operations into all of HP's business segments, and outsourcing more production to subcontractors. By mid-2008,

More than half of HP's PCs are built entirely by subcontractors. These measures considerably improved HP's profitability as its operating margin rose from 4.0% in 2005 to 8.4% in 2007 and to nearly 10% for the first half of 2008. HP plans on continuing to look for areas where operating efficiency and profitability can be improved, Such as the development and installation of its own new IT databases or the improvement of their supply chain.


The concepts of supply chain and supply chain management and discussed why managers are increasingly interested in the concept. The historical evolution of the supply chain movement from its early days of quick response and efficient consumer response was discussed. Several early supply chain initiatives at companies were described which indicate the competitive advantages and importance of linking supply chain to overall business strategy. This discussion provides insight for those companies investigating the concept of supply chain management. Companies who have achieved supply chain integration success report lower investments in inventory, a reduction in the cash flow cycle time, reduced cycle times, lower material acquisition costs, higher employee productivity, increased ability to meet customer requested dates (including short-term increases in demand), and lower logistics costs. To begin managing across the entire supply chain, companies should consider the following guidelines in their plans and implementation:

1: Link supply chain strategy to overall business strategy to align supply chain initiatives to business objectives.

2: Identify supply chain goals and develop plans to assure every process is individually capable of meeting supply chain goals.

3: Develop systems to listen to signals of market demand and plan accordingly, including changes in ordering patterns and changes in demand due to customer promotions.

4: Manage the sources of supply by developing partnerships with suppliers to reduce the costs of materials and receive materials as needed.

5: Develop customized logistics networks tailored to each customer segment.

6: Develop a supply chain information systems strategy that can support decision making at all

Levels of the supply chain and offers a clear view of the flow of products.