Ups-Hp Case Study
TABLE OF CONTENTS
Page 2 Executive summary
Page 3 Introduction
Page 4 Main supply chain issues within the Hewlett Packard-UPS case study
Page 6 Strategies for the future
Page 8 Conclusion
1 EXECUTIVE SUMMARY
The concept of supply chain is tightly linked to the concept of collaboration. A supply chain by nature involves the interaction of two or more firms, sharing resources, risks and capabilities and jointly working to achieve higher business performance. Therefore, companies involved in a supply chain structure must ensure collaboration among their partners by applying the following interventions :
- Appropriate performance measures: provides information regarding the results of the system efforts to supply chain members
- Intervention of integrated policies: replace local policies that prevent the supply chain members from attaining overall profitability
- Information sharing environment: to provide adequate visibility to all members
- Incentive alignment: so all members ' behaviour is aligned with the overall chain goal
The required levels of collaboration increase as the context in which businesses are embodied become more and more complex. Most companies are going or have already gone through a process of transformation in the way they do business: from integrated companies to fragmentation of their supply chains, which leads to the need of reliance on third party specialists
Both characteristics of reliance and collaboration among supply chain members involve the concept of trust. When a company trust its partner it means that the company has positive expectations about its partner 's motives . If one of the members has reasons to believe that its partner is motivated only by individual success and self-interest objectives, it is most likely that reliance and collaboration will not happen and the relationship will probably end.
Another trend of today 's markets is the expansion of the company 's activities to different countries,
Page 2 Executive summary
Page 3 Introduction
Page 4 Main supply chain issues within the Hewlett Packard-UPS case study
Page 6 Strategies for the future
Page 8 Conclusion
1 EXECUTIVE SUMMARY
The concept of supply chain is tightly linked to the concept of collaboration. A supply chain by nature involves the interaction of two or more firms, sharing resources, risks and capabilities and jointly working to achieve higher business performance. Therefore, companies involved in a supply chain structure must ensure collaboration among their partners by applying the following interventions :
- Appropriate performance measures: provides information regarding the results of the system efforts to supply chain members
- Intervention of integrated policies: replace local policies that prevent the supply chain members from attaining overall profitability
- Information sharing environment: to provide adequate visibility to all members
- Incentive alignment: so all members ' behaviour is aligned with the overall chain goal
The required levels of collaboration increase as the context in which businesses are embodied become more and more complex. Most companies are going or have already gone through a process of transformation in the way they do business: from integrated companies to fragmentation of their supply chains, which leads to the need of reliance on third party specialists
Both characteristics of reliance and collaboration among supply chain members involve the concept of trust. When a company trust its partner it means that the company has positive expectations about its partner 's motives . If one of the members has reasons to believe that its partner is motivated only by individual success and self-interest objectives, it is most likely that reliance and collaboration will not happen and the relationship will probably end.
Another trend of today 's markets is the expansion of the company 's activities to different countries,