Hewlett-Packard Case

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How can design for logistic concepts be used to control logistic costs and make the supply chain more efficient?

The three components for design for logistics are:
1. Economic packaging and transportation
2. Concurrent and parallel processing
3. Postponement/delayed differentiation
By packaging the product so that more products can be shipped and stored more efficiently will lower transportation costs and storage costs. Concurrent and parallel processing focuses on modification of the manufacturing process with the desired out come of shorter lead times, improved forecasting and reduction of safety stock requirements. Design for delayed differentiation can be used to address the uncertainty in final demand, even if forecasts cannot be improved.

What is delayed differentiation and can Hewlett-Packard use delay differentiation to address the problem described in the case?

The Institute of Supply Management’s glossary of key supply management terms defines delayed differentiation as: The strategy of producing and shipping generic products as far down the supply chain as possible before customer-required customization is added. This process would help lessen lead time and the amount of safety stock required by the European DC. By shipping a generic product and allowing the DC to assemble the appropriate power supply module and package it with the working printer and manual in appropriate language, would allow the European DC to have the appropriate inventory for wherever demand was greatest. How can the advantages of delayed differentiation be quantified? The advantages of delayed differentiation can be quantified by using aggregate demand information. According to the notes demand can be better forecast for a continent than a country and for a product family than a specific product. Utilizing postponement techniques helps make effective use of the information in aggregate forecasts

When should suppliers be involved in the new product...
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