Procurement Risk Management (PRM) at Hewlett-Packard Company

Venu Nagali (), Jerry Hwang (), David Sanghera (), Matt Gaskins (), Mark Pridgen (), Tim Thurston (), Patty Mackenroth (), Dwight Branvold (), Patrick Scholler () and Greg Shoemaker ()
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Venu Nagali: The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070
Jerry Hwang: The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070
David Sanghera: The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070
Matt Gaskins: The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070
Mark Pridgen: The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070
Tim Thurston: The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070
Patty Mackenroth: The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070
Dwight Branvold: The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070
Patrick Scholler: The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070
Greg Shoemaker: The Procurement Risk Management Group, Hewlett-Packard Company, Houston, Texas 77070

Interfaces, 2008, vol. 38, issue 1, 51-60

Abstract: Supply chain risks related to product demand, component cost, and availability uncertainties can have a significant impact on a manufacturing company's revenue and profits. The Procurement Risk Management (PRM) Group at Hewlett-Packard (HP) developed and implemented a mathematical model, business process, and software to measure and manage supply chain risks on the procurement side. In 2006, the software-enabled business process helped HP to manage over $7 billion in spending; this resulted in material-cost savings of $128 million. Over the past six years, HP has realized more than $425 million in cumulative cost savings using the PRM approach.

Keywords: supply chain risk management; inventory management; operations; planning; procurement; structured contracts (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (37)

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