The OEM’s supply chain in the EMEA was listed at 17 in Gartner’s top global supply chains.
Supply Chain Digital analysed the OEM’s supply chain, stating that in the EMEA it “continues to strengthen the company’s market leading position in printing and personal systems, helping it to better deliver for customers on a day-to-day basis”. The 17th place listing is said to be down to the “combination of agility, brain power and strength”, which is “paying dividends for all stakeholders”.
Volker Schmitz, Vice President and Head of EMEA Supply Chain at HP Inc, commented that “firstly, our supply chain is important for our customers. The way we interact with customers, and take, update on and deliver orders is driving customer satisfaction”, and added that his mission is “for the supply chain to go above and beyond for customers, delivering a competitive advantage for HP’s business and its partners”.
Discussing the OEM’s split in 2015, the site claimed that “such has been the seamless transition” that it is “testament to the multifaceted and hugely complex work carried out by a company-wide cross-functional team that the business, and therefore customers, have suffered no disruption”, with HP Inc’s “global market position ha[ving] actually strengthened over the course of the past year”.
Schmitz added that “the separation was the greatest cross-department collaboration the company has ever seen. The complexity was simply huge. Within Supply Chain we have changed so many structures, systems, logistics routes, supplier relations and organisational structures, and to do it in under a year was a huge achievement for the company”. Now the split is over, HP Inc is “already starting to reap dividends from a more flexible, agile supply chain setup”.
He also stated that “what has changed the most is our agility and how we are running our company. Before the separation our strategy was extremely broad, ranging from cloud services and software to various products, but now we are focused on two major franchises – personal systems and printing”. With “fewer organisation layers […] quick decision-making between strategically-aligned senior management has facilitated flexible, rapid development”, the site added.
The site also mentioned the “more nimble employee base of approximately 50,000 compared to 300,000”, which has made a “leaner organisation”, with the OEM’s supply chain “an important enabler” for “customer satisfaction and cost effectiveness” as well as “cash flow and sustainability”. Schmitz and his team also “keep close tabs on net promoter scores” that “assess the likelihood of customers recommending and promoting” the OEM to others.
HP Inc keeps good contact between its operational teams and customers to “communicate clarity and ensure reliability and responsiveness”, while globally it enables “cost effectiveness and ultimately increases in margins and profits”, Schultz adding that “we are in a business which does not allow mistakes on pricing. Our margins can be tight, so we are very focused on costs and making savings every day and every week.
“Cash flow is a big focus for us as well. It is not just about how we manage our inventories but also about how we manage our suppliers and customers. Cash is king and there are times where this is as important as cost reductions”. The scale of chain meanwhile includes that “every 60 seconds the company ships 35 PCs, 26 printers and 290 ink and toner cartridges into more than 100 countries” in the EMEA.