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JENISH PATEL 13241JALDIP BHAGAT 12920NRUPEN PATEL 13318 SYED IMRAN JAVEED13105SUPPLY CHAIN MANAGEMENT

Since Hewlett-Packard was founded in 1939, the company hasbeenatechnology pioneerand hasdevelopedareputationforexceeding customer expectations by providing the most innovativetechnology products available.HP wanted to continue this legacy by leveraging the power of theInternet to provide customers with easy and convenient access to itsproducts.2By establishing its consumer e-commerce store, HP not onlyrecognized that it could strengthen customer relationships and reducecosts, but also increase revenue growth and successfully managedemand. HPs online store was launched in early 1998 and experiencesrevenue growth of over 500% annually. HP decreases returns cycle times by 80% and per unit return productcosts by 70% through FedEx Return Manager. Online status tracking offers complete visibility throughout thereturns process.Going directly to the customerHP, having sold the majority of its consumer products throughtraditional retail channels, recognized the opportunity to capitalize onthe direct distribution model.HP also wanted to focus on substantially reducing its refurbishedproduct inventories and addressing its customers growing desire toorder products via the Internet.Going directly to the customer (Cont.)The creation of a new online sales channel for customers, nowknown as hpshopping.com, would enable them to capture a largershareofsales,enhanceits relationshipwithcustomers,andcomplement its existing network of retail distributors.hpshopping.comManagement at hpshopping.com turned to FedEx to help themstrategize and quickly implement the new Internet sales channel withminimal resource utilization and risk.HPshopping.comaskedFedEx todevelopacomprehensivesolutionthat wouldmanagetheentireprocessfromordermanagement to order fulfillment.

Why HP chose FedExHPwantedaproviderwithindustry-leadingexperienceandcapabilities, including: Proven expertise in informationtechnology.AccesstoU.S.householdsthroughanextensivedistributionnetwork. Experience in electronic commerce and supply chain management.HP wanted a provider that could do it all: Analyze business processes, assess opportunities, and recommenda solution. Integrate multiple solutions from various alliance partners with HPbusiness processes to meet customer needs. Oversee the supply chain and information management componentsof the solution, thus freeing HP to focus on strengthening customerrelationships. Quickly deliver the solution to market.The Supply Chain Solution1. Needs assessment and supply chain analysis.2. In-depth solution design anddevelopment.3. Order management.4. Warehouse management.5. Inventory management.6. Order fulfillment.1. Needs assessment and supply chain analysisOnce Hewlett-Packard made the decision to establish a new e-commerce channel for its customers, FedEx brought in cross-functional teams of professionals to assess HPs supply chain architecture and identify critical integration points.Each team worked closely with key areas across HPs supply chainto determine key strategies that would enable the company to meet thegrowing customer demand for its products.2. In-depth solution design and developmentAfter FedEx and HP identified opportunities for the creation of thee-commerce sales channel, a cross-functional team from FedEx beganthe design and development of a direct-to-consumer solution for HP.This solution created a new channel for HP that would allow thecompany to sell its refurbished printers and computing products tocustomers through the Internet.2. In-depth solution design and development (Cont.)ForHP, itwas imperativethat FedExnotonlydevelopandimplement the solution, but also manage the critical processes that serveas the engine for the online channel.3. Order managementAssystemspartoftheforsolution,FedExintegratedcriticalinformationneededthenewchannel,enabling itscustomers toconveniently order products online.HP was able to quickly launch the initial site, HP Outlet Center, to itscustomers and begin receiving orders within two months. Critical to thesuccessofthis solutionwastheintegrationofonlinecreditcardauthorization and settlement within the order management system.3. Order management (Cont.)Once the order is authorized, it is accepted by HP, confirmed, androuted to the fulfillment center by FedEx. FedEx also contracted a call center provider to manage the services required to support HP customers that prefer purchasing products via a toll-free number. To complete this component of the solution, FedEx and the call center collaborated on information technologies that would support the necessary integration ofthe order and inventory management systems.4. Warehouse managementBecausehpshopping.comwantedtoestablishane-commerceexpenses, it managementchannel without having to increase personnel and capitalwasnecessarytoprovidecomprehensive warehouseservices.Through the FedEx fulfillment center in Memphis, FedEx providedhpshopping.comrequirement.withtheresourcesnecessarytoachievesuchav4. Warehouse management (Cont.)The fulfillment centers close proximity to the FedEx SuperHubenables hpshopping.com to enjoy a variety of benefits associated with the elimination of the inbound transportation leg to the FedEx SuperHub.5. Inventory managementThroughtheintegration ofordermanagement andinventorymanagement systems, FedEx enabled hpshopping.com to proactivelymonitor and control product inventory levels.By integrating those systems from hpshopping.com and the third-party call center, FedEx was able to develop a totally seamless inventorymanagement application.5. Inventory management (Cont.)AttheFedExfulfillment center,logisticsinformationsystemsconstantly monitor and update inventory status. In addition, customerscan track their shipments from hpshopping.com. Conversely, since thecallcentersystemsare updatedwith order information fromhpshopping.com, customers can also call the toll-free number and obtaincomplete customer service information from call center representatives.6. Order fulfillmentIn order to help hpshopping.com increase responsiveness to itscustomerbase,FedEx placedbothrefurbished- andfinished-goodsinventories in the FedEx fulfillment center, located in Memphis.Late cutoff times enable hpshopping.com customers to order as lateas 10:00 p.m. and still have their orders shipped the same day.In addition, hpshopping.coms customers benefit by having multiplepieces arrive in one coordinated delivery, instead of receiving multipleshipments.Results summary- HPs revenue growth of over 500% annually.- Hpshopping.com was ranked #1 in retail revenue and #3 in PC productsites.Italsorankedinthe topten foroverallrevenueandbrandrecognition.- HP decreases returns cycle times by 80% and per unit return productcosts by 70%.