Professional Documents
Culture Documents
Submitted By:
NEHA SINGLA
RAMANDEEP SHARMA
CONTENTS
Steps in a strategic sourcing process. vKey chain program. vProcurement Risk Management. vThe PRM Framework. vHP Risk Contract-Valuation Analysis. vBenefits.
v
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Inventory collaboration
Auctions
Initially the focus of HPs e-Bazaar program was not in using auctions for sourcing, but rather for supply chain execution. vSupport supply chain execution covered disposing of excess material. vRFP or RFQ process, as a decision mechanism for awarding business.
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STRATEGIC SOURCING
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Launched at HP in August of 2000. v Framework to quantify the impact of product demand, component cost, and availability uncertainty on revenue, costs, and prots. v To support the risk management process v Manage procurement uncertainties and risks. v Training curriculum and consulting infrastructure to help HP professionals .
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quantify the impact of product demand, component cost, and availability uncertainty. A suite of software tools comprises HPHorizon demand-scenario software, HPRisk component-cost-forecasting software, and HPRisk contract-valuation software. A rigorous PRM business process to proactively manage procurement uncertainties and risks; and A training curriculum and consulting
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HP Horizon Software
The analytics embedded in the HPHorizon software perform a regression analysis of historical forecasts and shipments to quantify forecast bias and uncertainty. then combines this information with current demand trends to represent the uncertainty in the demand forecast. 5/22/12
Hi-Tech exhibit signicant cost uncertainty. hi-tech component prices typically demonstrate a long-term decline in costs due to technological and process-related improvements. software performs a regression analysis of historical costs for a particular component to determine 5/22/12 parameters of price process to the
the risks are managed by setting up portfolios of structured contracts that HP executes directly with suppliers. binding commitments, incorporating a complex combination of quantity and pricing terms
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these contracts be appropriately analyzed to increase benets and decrease the risk
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BENEFITS
Material-cost savings: $128 million in material-cost savings in FY06, and over $325 million in material cost savings. Assurance of supplyP:despite an industrywide memory shortage approxi- mately one year ago, the PRM contracts that HP business units had executed ensured that they obtained 100 percent of their 5/22/12
Contd
Inventory reduction: The requirement for HP to hold inventory is reduced as suppliers commit to providing dened upside exibility through exible- quantity contracts. Supplier benets: The quantity commitments that HP makes to suppliers, as opposed to just exchanging nonbinding forecasts, 5/22/12
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THANK YOU !!
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