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HP sourcing/procurement solutions

Rationalizing complexity in purchasing

A sound supply chain strategy and its supporting framework are the foundation of your enterprise's ability to grow. A business framework for building an adaptive supply chain allows your enterprise to flex and respond to business change while also strengthening your competitive response.

The foundational framework for the next-generation supply chain

Collaborative product development

Sourcing/ Procurement

Supply chain/ Logistics management

Selling and distribution

Partner manufacturing management Product lifecycle management

Manufacturing execution

Warranty and after-sales services Reference data management

The ability to effectively structure and manage sourcing and procurement activities translates directly to the bottom line. In today's resource-constrained economic environment, the pressure to rationalize purchasing functions has become significantly greater--especially as the boundaries of the enterprise continue to expand. Not only must you squeeze as much margin as possible out of every dollar spent on direct materials, but you must also improve your sourcing and procurement operations on a continuous basis.

HP's enterprise customers are typically grappling with sourcing and procurement issues such as: · Reduction of non-value-added costs, such as administration · Collaboration with suppliers and contract manufacturers · Leveraging of spending across the enterprise to improve purchasing power · Control of overall operating costs and risk · Working with supplier-managed inventory (SMI) · Reduction of time to market and time to source · Integration of product development and sourcing processes to optimize product features and quality while reducing manufacturing costs In today's challenging economic environment, the overarching issue in sourcing and procurement is how to address all these concerns in a way that contributes to ongoing business agility.

What issues are you confronting?

The typical enterprise sourcing and procurement solution has evolved piecemeal over time. Many businesses are discovering that what worked reasonably well in the past is now less than adequate.

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Services to fine-tune your strategy

HP can provide the focused guidance and support you need to field the right sourcing and procurement solutions. HP Services professionals can work with you on multiple levels: strategic, business process or function, and application. · Sourcing and procurement strategy--HP strategic sourcing services give you visibility into how and where you spend precious procurement dollars. · Sourcing execution--HP consultants focus on tools and processes that increase efficiency, produce true market prices, and shorten the time to return on investment. · Tactical purchasing and collaboration--HP solutions facilitate the management of catalogs, requisitions, purchase orders, invoicing and payment, supply chain­wide inventory, and component warranties. · Performance management--HP consultants work with you to put tools in place that address contract compliance, supplier performance and development, commodity management, and procurement performance management.

HP Services offerings cover core procurement processes, including: · Bill of materials (BOM) analysis · Bid management · Commodity analysis and prioritization · Commodity strategy development · Contract development and negotiations · e-Disposition, or online obsolescence or disposition of excess inventory · e-Sourcing, or online auctions · Inventory collaboration and dynamic replenishment · Payment · Procurement risk management · Procurement workbench · Purchase order and forecast collaboration · Spend analysis · Spend and price monitoring

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Bringing measurable business value to sourcing and procurement

A well-designed sourcing and procurement strategy should benefit all supply chain participants. With it in place, your procurement professionals will be able to react faster to changes in supply and demand. Also, e-enabled collaboration can significantly improve buyer productivity without adding to the administrative burden and enable you to shift buyers to more strategic tasks like sourcing. HP best practices and the ability of our consultants to use pre-designed solution components can reduce the costs of goods and services. In addition, Webenabled inventory solutions can significantly reduce inventories throughout the supply chain, increase responsiveness, and allow price reductions on materials to be realized more quickly. And with more accurate information and readily available tools to analyze it, your enterprise can improve its sourcing and procurement operations in a remarkably short time.

Why HP?

If you have concerns about the effectiveness of your purchasing operations, consider partnering with HP to develop a flexible approach that allows your enterprise to adapt quickly to change. HP has significant experience implementing e-enabled procurement and sourcing solutions, including our own supplier collaboration hub. HP can leverage tools, methodologies, and best practices that have been refined in literally thousands of engagements, as well as partnerships with leading providers such as SAP, to deliver a solution that will work for your enterprise. In addition, HP offers: · Tools, technologies, and best practices that are based on established industry standards · 65,000 skilled services professionals operating in 160 countries · Consultants ranked among the top three in the world in networking and integration1

For more information

For more information about how HP sourcing and procurement solutions can help your company create a more agile purchasing environment, visit: www.hp.com/go/manufacturing

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IDC document #30097, Worldwide and US Network Consulting and Integration Services Competitive Analysis, 2003, September 2003.

© Copyright 2004 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

To learn more, visit www.hp.com/go/manufacturing

5982-7538EN, 07/2004

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