Supply chain management is a frequently encountered phrase these days, as managers strive to improve factory performance. The trouble is that all too often the real meaning is lost. Instead, a casual observer might interpret the activities at the factory as evidence of an intensive effort to improve supplier management.

Good supplier management, while praiseworthy, does not constitute good supply chain management without a concurrent effort to manage the rest of the aspects of delivering products to customers. In this article, I will present a complete supply chain management methodology. This approach, developed at Hewlett-Packard, will enable a manufacturing operation to better manage its supply chain, ultimately improving customer satisfaction levels while reducing overall costs.

Hewlett-Packard has successfully used this methodology and is making efforts to implement the practice of good supply chain management at all its divisions. HP identified the need to improve its process for manufacturing and delivering products to customers as profit margins suffered pressure from increasing competition. Other factors have contributed to a renewed focus, namely:

• More instances of multisite manufacturing, where several independent entities are involved in the production and delivery process;
• Increasingly cut-throat marketing channels, such as independent computer dealers;
• The maturation of the world economy, with heightening demand for “local” products;
• Competitive pressures to provide exceptional customer service, including quick, reliable delivery.

HP’s methodology has led to major changes in the way it does... To read the complete article, login or sign-up using the form below.

Become a premium subscriber today to read this and all MIT Sloan Managmeent Review articles.

Buy this article. Purchase one or more copies of this article in PDF form.

Become a premium subscriber today to read this article and the entire archive of MIT SMR articles.

Upgrade your existing subscription to premium

Sign in if you are a premium subscriber.

E-Mail:
Password:

Do you subscribe the MIT Sloan Management Review in print? Enter the email address and password you used when ordering. Don't remember? Lookup your subscription account information

• Register for free access to recent articles and the current issue of MIT Sloan Management Review.
• Subscribe and read articles from the past three years online.
• Premium subscription give you access to the entire archive of articles.