Ups Hp

- Partnership as part of the overall strategy
- Both companies must continue to improve the efficiency of existing supply chain operations, exploring process innovations that might be strategically advantageous to HP
- ?Increasing efficiency of existing processes and not discovering more effective alternatives will be counterproductive over time.
- Concerns the partnership will hit a brick wall in the near future
- How much more efficient can they become on the current practice?
- Colaluca wanted:
- UPS to provide thought leadership by applying industry best practices – from experiences from other consumers
- UPS to play a more proactive roles in coordinating internal capabilities
- Transform the supply chain at HP
- From a process that supported its business objectives to a strategic enabler to create and capture new market opportunities.
- Doubts about the current structure –independent rather than interdependent thinking
- Outsourcing providers face the difficult challenge of meeting many diverse and changing customer needs
- How to ensure HP feels as the only customer?
- How focus on operational efficiencies prevent them from innovation?
- Due to competition in supply chain outsourcing margins dwindled so they had to develop business models that allow them to create economies of scale while proving customized solutions for individual customers
- To be leaders: create an adaptable business infrastructures (leaveareged across multiple customers and customized within each relationship)
- Adavance techonologies to create digital linkages
- Effective information flow
- Modular process designs
- Reduction of redundancies between firms exploting warehousing and distribution infrastructure across customer relationships
- UPS’ vast array of available services and industry solutions could be combined and leveraged by customers to create and sustain a competitive advantage
- HP integration of interfirm systems and processes was an enormous task
-