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. © 2008 INFORMS.
CITATION STYLE
Nagali, V., Hwang, J., Sanghera, D., Gaskins, M., Pridgen, M., Thurston, T., … Shoemaker, G. (2008). Procurement Risk Management (PRM) at Hewlett-Packard company. Interfaces, 38(1), 51–60. https://doi.org/10.1287/inte.1070.0333
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