Investing in Transportation to Improve Supply Chain Efficiency at HP
Tony Prophet is Senior Vice President, Operations Printing and Personal Systems (PPS).
Hewlett-Packard has one of the industry’s largest scale and farthest reaching supply chains. Every minute of every day we deliver 120 personal computers, 100 printers and 1,200 ink or toner cartridges.
Since 2009, we have dramatically simplified our supply chain network and supply base, and created significant cost and management efficiencies. Specifically, we reduced our suppliers by almost 50 percent and our supply chain nodes, also called transit hubs or centers, by 25 percent -- leaving us with about 1,000 production suppliers across 410 nodes. Evolving and refining this network is core to creating value for our customers and our shareholders.
One recent example of HP’s supply chain innovation is the opening of an HP transit hub at Port of Piraeus in Athens, Greece.Through this new transit center, HP will be able to access European, African, Middle Eastern and Central Asian markets faster, more efficiently and with lower impact on the environment.
- Improved access to markets: The Port of Piraeus is strategically located at the center of the Mediterranean--augmenting HP’s existing transit centers and improving our access to a large number of customer markets.
- Faster delivery: On average, HP can get products to customers in Central, Southern and Eastern Europe as well as Africa and parts of the Middle East seven days faster using the Port of Piraeus.
- Cost savings: Faster delivery times translate to lower cost, as HP can ship and sell more products in the same amount of time. Faster delivery also results in shorter lead times and more accurate forecasting, which leads to improved movement of inventory.
- Environmental sustainability: An additional advantage to using the Port of Piraeus is the substantial environmental benefits of moving freight by ocean in comparison to other frequently used transport methods. For example, moving products via ship decreases CO2 emissions by up to 57 times in comparison to air transport.
HP’s goal is to build the industry’s best, fastest, cheapest and most efficient supply chain – the Port of Piraeus Transit Hub is just one recent example of how HP is using its scale, supply chain innovation and global partnerships to drive towards our goal.