34 SCS:THE EUROPEAN SUPPLY CHAIN EXCELLENCE AWARDS 2008 DECEMBER 2008 SUPPLY CHAIN STANDARD
www.supplychainstandard.com
Sourcing & Procurement
Winner
Hewlett Packard CDS
Shortlisted
British Ceramic Tile
Haldex
Hewlett Packard CDS
John Henderson (centre),
head of logistics and repair
services, EMEA, John Power
(centre left), general
manager, UK & Ireland, and
James Bury (centre right),
logistics support manager,
of Hewlett Packard CDS,
accept the Sourcing &
Procurement Award from
Dan King, group publisher
of supplychain-jobs.com (far
right). Also pictured is
Jeremy Vine. (far left).
The Sourcing & Procurement category came down to a
shortlist of three companies – British Ceramic Tile,
Haldex and Hewlett Packard CDS.
British Ceramic Tile manufactures a wide range of wall tiles
using the latest Italian and Spanish technology to achieve
high quality yields through a traditional twice fired process.
The management realised that while production and design
facilities were state of the art, the business approach to the
supply chain and procurement functions were disjointed and
so it engaged in applying sound procurement practice
centred around minimising the amount of tiles ordered to
keep inventory in balance. Whereas the judges recognised
that significant advancements had been made, these were
viewed to be from a low base.
Haldex is a Sweden-based vehicle component
manufacturer. Back in 2005 the company’s sourcing and
supply organisation was decentralised, driven by each
individual business unit purchasing on a local basis. Since
then things have changed to an organisational structure that
supports global sourcing, procuring material in the region
with the lowest lifecycle cost for the given quality. This has
been achieved through the development of common
processes and supporting policies for everything from a
common code of conduct to early supplier evaluation and
inventory management, creating a saving of 2.5 – three per
cent in annual purchasing spend.
The principle area of focus for Haldex was the
centralisation of procurement activities and systems over a
two-year period. The company’s objective was to create a
centralised planning system across three different countries
and across its various business groups, which were all
Sponsored by supplychain-jobs.com
accustomed to buying or sourcing product in different ways.
The company had to look at process flow, the way it plans, coordinates
and manages suppliers and how it rationalises its
supply chain across those three countries. Haldex achieved
significant savings through the initiative, overcoming some
major obstacles. Impressive though it was, the prize had to go
to the hi-tech contender.
Hewlett Packard CDS employs in excess of 3,000 people
across EMEA, with 1,600 being based in the UK and Ireland.
Every month the company ships nearly 30,000 parts and
manages somewhere in the region of 17,000 return
transactions. Recently HP CDS developed and implemented
an EPO solution that has revolutionised its order processing
activity. The solution has been integrated with key suppliers,
enabling the company to seamlessly produce and
electronically transmit orders directly from its procurement
system to suppliers. The system provides for fully automated
ordering process and includes e-invoicing.
In the past 12 months Hewlett Packard CDS has launched a
number of initiatives to improve procurement processes: full
electronic integration with suppliers, automated order
processing, supplier performance measurement, dedicated
Recently HP CDS developed and
implemented an EPO solution
that has revolutionised
its order processing activity.
inventory at vendors, a capped pricing structure, and flexible
supplier hours. These initiatives were launched as part of a
supply chain-wide logistics enhancement programme that
led to a £10 million stockholding reduction and a 22 per cent
reduction in logistics costs. In addition, the company
benefited from improved parts availability, improved service
fulfilment, reduced inventory levels, competitive pricing,
improved productivity, dedicated vendor inventory, price
stability, and overall efficiency in sourcing and procurement.
HP has adopted the approach of building long-term
relationships with key partners who have proven capability to
support the company’s requirements and its longer term
procurement strategy. The company has also developed an
enhanced suite of supplier KPI measurement criteria, which
directly meets the requirements of the business and drives
continuous improvement. This has enabled HP CDS to
standardise its vendor management processes across all
contracted vendors.
The judges say, “where they won out was through their
commitment to the changes, their dedication to collaboration
and ultimately, the results.” And so, Hewlett Packard CDS was
the judges’ choice for the Sourcing & Procurement Award.
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