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HP Imaging and Printing Systems Gains Global Insight into Supply Chain with Informatica Applications

  • May 01 2002, 1:00am EDT

CATEGORY: Analytic Applications

REVIEWER: Rudy Garza, information management data architect, IPS, Hewlett-Packard, Inc.

BACKGROUND: Hewlett-Packard Company's Inkjet business is the worldwide market leader in inkjet imaging products. The inkjet business includes the manufacture of inkjet supplies (cartridges, papers and special media). In the last five years, HP Imaging and Printing Systems (IPS) has expanded its installed base from 17 million to 85 million printers.

PLATFORMS: The Informatica Supply Chain Analytics application is running on an HP 9000/800/N4000-44, HPUX 11.00, 10LCR.

PROBLEM SOLVED: HP IPS needed to consolidate purchases globally, leverage total spending and reduce inventory within its supply chain. With manufacturing facilities in Singapore, Ireland, Puerto Rico, San Diego and Corvallis –­ each using SAP differently to track inventory, purchases, manufacturing and sales –­ HP IPS required a standard method to produce a global, enterprise-wide view of its supply chain operations. HP IPS selected Informatica Supply Chain Analytics to source SAP data from its five manufacturing sites. Packaged metrics and analytic reports from Informatica provide roughly 200 HP suppliers, customers, purchasing managers, plant managers and business analysts with standard reports. HP IPS grants access to some of its major suppliers to real- time global inventory levels across the five manufacturing facilities. By accessing HP IPS's global supply chain data, these suppliers can understand their own product run rates and populate HP facilities in real time.

PRODUCT FUNCTIONALITY: Today, Informatica Supply Chain Analytics is used to automate all of HP IPS's SAP data extraction processes from the five manufacturing facilities. The result is a highly leveraged data mart to provide users with packaged analytic reports that enforce worldwide standards, consolidate purchases from regional to global and reduce duplicate efforts between sites. The efficiency and productivity gains enabled by the Informatica solution were significant. For example, the staff required to manage the daily system operations on a global basis has been reduced from 25 to 5.

STRENGTHS: Informatica Supply Chain Analytics creates an integrated value chain for customers and suppliers. Even though the HP IPS division has more than 1,000 suppliers spanning the globe, Informatica Supply Chain Analytics met 90 percent of HP IPS's core data requirements out of the box. HP had estimated that a project of this magnitude would take almost three years. With Informatica packaged metrics and reports, the company was able to deliver in 50 percent of that time, using fewer resources.

WEAKNESSES: Because some of HP's needs could not be met entirely by an out-of-the-box application, Informatica and HP worked closely to customize the metrics. This level of customization required an investment of both financial and human resources from both companies.

SELECTION CRITERIA: Informatica Supply Chain Analytics enabled HP to create metrics and standards that were needed for a stronger global value chain. Also, the Informatica reputation for integrating data from disparate systems proved essential for integrating all of the information necessary to meet the system requirements. With Informatica, HP IPS was able to automate all its data extraction processes for this part of the business.

DELIVERABLES: HP IPS delivers near real-time analytics to more than 200 suppliers, customers and internal users. The reports that Informatica Supply Chain Analytics produces for HP IPS provide a consolidated view of manufacturing facilities including order and inventory levels. This view enables HP IPS to see inventory levels for finished and unfinished products at any location. This view also provides a clear picture of product movements to accurately determine the amount of product at any stage. HP IPS has saved millions of dollars by improving internal and external processes, giving suppliers access to their supply chain information and changing the way decisions are made.

VENDOR SUPPORT: The Informatica sales and consulting team worked closely with HP to invest in customizing metrics to meet specific HP needs. The Informatica product development team was available to make specific enhancements and customizations in real time, based on emerging requirements. In general, the HP IPS project team was impressed by the commitment and responsiveness of Informatica.

DOCUMENTATION: Informatica's documentation was more complete and easier to understand than most. We did use the documentation to get up and running, and we had no problems.

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