HP restructures to improve supply chain


HP restructures to improve supply chain

Antony Savvas

HP is attempting to improve its supply chain by integrating the activities carried out by its Global Operations organisation directly into its business groups, as part of its ongoing restructuring plan.

HP's three main business groups - Imaging and Printing, Personal Systems and Technology Solutions - will now be responsible for supply chain, procurement, logistics, order-fulfillment and some marketing.

Last July, HP announced that it was to cut 14,500 jobs, or 10% of its headcount, in an attempt to cut its operational costs and increase profits.

That move was designed to help save the company around $1.9bn (£1.1m) a year from 2006, and the latest restructuring is designed to help HP achieve that target.

HP chief executive officer Mark Hurd said, “This realignment will enable us to build on the momentum, while enhancing accountability and enabling greater focus.”

Analyst AMR Research said the move could give HP “more supply chain agility” and help improve margins.


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