Supply Chain Strategies

Research indicates that supply chains help organizations attain competitive advantage. In turn, the successes or letdowns of such supply chains are determined in the open market by the end consumers. Rendering the fitting product, at the fitting price, at the fitting time to the consumer is not only the fundamental aspect to competitive success but also the vital element to survival (Christopher and Towill, 2001).

Owing to the fact that the intricacy of supply chains in the present day, partly as a result of globalization and out-sourcing, the manner in which supply chains are structured can make a difference between an organization generating profit or loss. Different types of structures avail the management the choice to select the one that best suits consumer expectations. However, it is imperative for such chosen pipelines to go hand in hand with the business strategy of the supply chain (Christopher and Towill, 2002).

In the article "Developing Market Specific Supply Chain Strategies," Christopher and Towill (2002) hypothesize three feasible pipeline designs, all of which are pertinent to the global apparel supply-chain framework. To begin with, predictable demand for standard items can be met by means of a lean pipeline, perhaps provided for from overseas manufacturers. Secondly, unstable and volatile demand for special items can be met by means of an agile pipeline perhaps provided for from home manufacturers.

The third pipeline design encompasses that for speedy reaction to replenishing standard products for which there is an unanticipated demand for particular colours, sizes, volume and the like (Christopher and Towill, 2002). This paper will elucidate the manner in which one or more of these pipeline designs for supply management would fit with the strategy of global electronics company Hewlett-Packard to optimize materials and product flows.

Further, the paper will develop and present a strategy for implementing change in the organization with the objective of bringing about a transformation that will secure competitive advantage through improved performance, coordination, and innovation. Hewlett-Packard and Supply Chain Management Hewlett-Packard Company (HP) is one of the biggest information and technology (IT) corporations in the world. Hewlett-Packard Company is centered in the information systems industry and is a technology organization that specializes in storage computing, hardware, software as well as network services.

HP is well renowned for providing technological solutions to individual consumers, businesses as well as other entities across the globe. HP competes with IBM in providing CPUs, printers, lasers and other products as well (Hewlett-Packard, 2012). Hewlett-Packard has been on a journey to institute and steer greater efficacies in the supply chain and at the same time leveraging its competitive edge of a receptive, assimilated and commercial method to supply planning and consumer satisfaction.

Having a consumer-centric tactic to operations within its supply chain, Hewlett-Packard is inventing new ways and means to segment and serve a wide range of consumer needs (Johar et al., 2014). In accordance to Lee (2004), the most effective supply chains are able to determine structural changes, at times prior to them taking place, by seizing the most recent data, sifting out noise and being able to keep a trail on major patterns. Subsequently, they shift facilities, alter supply sources, and if possible, outsource manufacturing and production.

For example, when HP began manufacturing ink-jet printers in the 80s period, the company established both its manufacturing and research and development divisions in Washington (Lee, 2004). In particular, the company wanted the teams for product development and manufacture to work in tandem since ink-jet technology was in its infancy, and the major printer market was in the United States.

As the level of demand increased in different regions of the globe, the company established manufacturing facilities in Singapore as well as Spain to meet the demands for Asia and Europe respectively (Lee, 2004). Despite the fact that Washington continued to be the location where the company developed new printers, Singapore grew into the biggest production facility because HP required economies of scale for its imminent survival.

Towards the mid-90s, the company realized that manufacturing technologies for printers had advanced and progressed and that it could subcontract manufacturing to wholesalers wholly. Subsequently, Hewlett-Packard achieved cost reductions and continued to be a leader in an extremely competitive market (Lee, 2004). Towards sustaining its status and position as a leader in the IT industry, HP has to be at par with incessant progressions and advances in technology in an intensely competitive marketplace.

Each fiscal year, the company unveils thousands of new products and therefore the older ones lose their value fast. (Billington et al., 2005). With the market having fierce competition, it is vital for HP to fittingly design, construct and augment the supply chain wherever possible. The outcome of this is that cost factors, for instance write-offs, material devaluation and scrap costs have come to be the sole largest disadvantage to profitability (Billington et al., 2005).

To the present moment, HP embarked upon the issue of first ascertaining, and then diminishing, inventory-driven expenses via a mix of homebased worksheets together with the modeling proficiency of Hewlett-Packard's internal Strategic Planning and Modeling group (SPaM) (Billington et al., 2005). Through this approach, the suggested strategies for supply chain management usually encompassed integration, harmonization, and partnership within the organization and amongst organizations all over the supply chain. In the organization, SCM takes into account varied activities like inventory apportionment, demand estimating and network alignment (Amaral and Kuettner, 2008).

Market Specific Supply Chain Strategies Within any industry, an organization can utilize three different approaches to attain a competitive advantage over rivals and have a superior performance. These approaches consist of differentiation in product offering, cost leadership, and focus. For starters, differentiation in product offering takes into account offering the consumers a unique product or service compared to the prevailing ones within the marketplace. Secondly, the focal strategy encompasses offering a product or service while laying emphasis on a particular group of buyers, target market, or market segment.

Lastly, the cost leadership approach takes into consideration offering consumers a product or service that has a lower price compared to the other rival products or services, which is an approach of luring and appealing consumers to the company (Tanwar, 2013). In accordance to Christopher and Towill (2002), the companies that utilize a lean supply strategy within their supply chain are incessantly endeavoring to attain a competitive advantage via the cost leadership approach.

On the other hand, companies that utilize an agile supply strategy within their supply chains constantly endeavor to attain an edge over their rivals through product and service differentiation. With regard to the lean supply strategy, the key emphasis is decreasing the level of waste in order to attain cost leadership and the major component in lead production encompasses proper management of relationships within the supply chain (Christopher and Towill, 2002).

In this case, manufacturing through the lean supply strategy necessitates healthy relationships between the suppliers and consumers giving rise to an outstanding and remarkable extent of driven knowledge and reliance. By attaining and sustaining benefits of lean manufacturing, any positioning within the lean supply chain should mirror high levels of information sharing, fast enhancements in the performance of suppliers, and minimal costs of transactions.

As a result, the lean supply approach anticipates the suppliers to take part in eradicating and getting rid of all waste within the product pipeline enthusiastically (Davis, 2015). The key goal of an agile supply chain strategy is to facilitate flexibility in alignment to generate product or service differentiation by means of service levels.

This is in the sense that key elements in this agile supply chain are substantial change to requirements in the market and for competition, realignment of production practices, in addition to resolving communicative and relationship problems (Christopher and Towill, 2002). As a result, manufacturing practices using the agile supply strategy necessitates relationships between the consumer and supplier, creating a remarkable extent of cooperation and trust.

Any executions undertaken within the agile supply chain ought to take into account the thoughts and perceptions of personnel, management, and also mirror the organization, design and marketing of a product (Christopher and Towill, 2002). As a result, effective agile supply chain strategy placements are reliant on the alignment of environmental decisions, approach, and espoused expertise, procedures, or structures (Christopher and Towill, 2002). According to Christopher and Towill (2002), ideally companies should endeavor to benefit from the strong suits and advantages of both agile and lean supply chain strategies.

Relatively, both of these approaches and models can function at particular periods, however in the similar setting. On the other hand, both the agile and lean supply chain strategies can function concurrently in distinct settings within the supply chains of a firm. What is more, as pointed out by Christopher and Towill (2002), the implementation of the Market Winners/Market Quantifiers Framework, firms may appropriately have to design and set out the leanest agile or most responsive lean system.

In particular, these decisions and actions undertaken trail cost as the competitive edge in the market for lean supply strategy. On the other hand, availability and accessibility functions as the competitive edge in the agile supply strategy (Davis, 2015). Nonetheless, it is imperative to note that availability and cost are correspondingly market quantifiers for cost and availability under the Market Winners/Market Quantifiers Framework (Christopher and Towill, 2002). A good illustration can be delineated with Hewlett-Packard.

In particular, the company retails and at the same time manufactures hardware, software, and associated services to customers and companies. Agile Strategy Used by Hewlett-Packard At the onset of the 90s period, Hewlett-Packard challenged the issues of inventories soaring into the extents of billions and unsettling customer discontent through consumer order satisfaction. In particular, Hewlett-Packard ended up espousing strategy and plan for manufacturability as a standard in the design and development of products.

Subsequent to its disposition, HP also set up a connection between product design and placement, distribution in addition to customizing the products to several different market segments. This approach takes into account services for operations and delivery bearing in mind several market segments with support for rescheduling and delay activity. In particular, customization of products is undertaken to augment and enhance the inventory of HP and service transaction.

As a result, the postponement in customizing products has elevated Hewlett-Packard's reaction agility to alterations in the demand combination from various market segments (Lee et al., 1993). In the present, HP applies the design for supply chain (Dfsc) approach. This is a methodical, repeatable procedure for product development and engineers throughout the firm. Practically, HP utilizes six Dfsc methods to decrease supply chain expenses, augment consumer experience and increase the profits generated.

The first technique is variety control, which encompasses trading-off costs within the supply chain and also losses in sales to ascertain the product variations that are rationalized with respect to margins, brand equity and also channel necessities. The second technique is logistics enhancement where the company makes a comparison of the costs of distribution with the costs for design and material. For instance, a lesser and lighter product might facilitate cost-effective airfreight, decreasing inventory costs and enhancing receptiveness.

On the other hand, a more complex product necessitates minimal packaging material and faces minimal returns owing to damage (Supply Chain Brain, 2016). Another technique utilized by HP is commonality and re-use. This encompasses assessing the use of distinctive parts in comparison to parts that are common, recycled or standard within the industry. In many cases, distinctive parts have lower material expenses and facilitate product uniqueness. Parts that are common usually decrease inventory costs whereas recycled parts help faster access to market. Fourth, there is the postponement technique.

This makes it possible to ascertain whether it is sensible to design products and manufacturing practices to postpone the point of differentiation up until the demand for the end-consumer is well defined (Supply Chain Brain, 2016). The fifth technique is referred to as take-back facilitation. This takes into account considering product and packaging alterations to decrease reverse supply chain and environmental costs. Reliant on company policies, terms of guarantee and government codes of practice, Hewlett-Packard will experience advantages and disadvantages of taking back products.

A good example is that a change in design enhances the reusing of Inkjet deliveries by 25%. Lastly, there is tax and duty decrease. In this technique, HP makes a decision as to where it should source and procure parts and also assemble its products. The amount of taxes and also duties levied on parts, subassemblies, and products will be dissimilar on the basis of the nation of origin (Supply Chain Brain, 2016).

Hewlett-Packard is reliant on its supply chain strategy to remain agile and provide consumers what they want in the printer, personal computer, and server markets. In accordance to Eshkenazi (2013), HP has altered its strategy from procuring majority of its semiconductors in large quantities from Intel to utilizing numerous chips from an assortment of suppliers, for instance Nvidia, which is acknowledged for its graphic chips, Texas Instruments, which manufactures audio and video know-how and also ARM Holdings plc, which manufactures chips placed in mobile phones.

In particular, this strategic action enables HP to act fast to manufacture the products that are desired and demanded by consumers (Eshkenazi, 2013). In the contest for consumers, this agile strategy employed by HP has a key competitive advantage in its supply chain and distribution.

In particular, this key competitive advantage for the most part may lie in capability to place a great deal of engineers on veracious kinds of products and manufacture them fast, reconfiguring supply chains hastily when a product becomes a sensation, in comparison to how it does on pure pricing power. It is imperative to note that the supply chain of Hewlett-Packard is already strong enough. However, the corporation endeavors to utilize this strong suit to succeed and prosper in a fast-changing market (Eshkenazi, 2013).

Strategy for Implementing Change For an international corporation, such as HP, managing the logistics process had come to be an imperative issue. With respect to an individual product, the difference between generating an income or loss can be dependent on the magnitude to which the firm can make the most of the global pipeline, for the reason that the involved expenses are significant.

As a result, Hewlett-Packard as a global firm endeavors to attain a competitive edge by determining global markets for its products and thereafter to come up with a manufacturing and logistics approach that is able to provide support to its marketing plan (Eshkenazi, 2013). In the contemporary, Hewlett-Packard is a company striving to ascertain that it is agile enough to avoid losing any of its market share and status in this technological era owing to the incessant intrusion of disrupting technology. One.