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References (6)
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Víctor Martínez-de-Albéniz, D. Simchi-Levi (2005)
A Portfolio Approach to Procurement ContractsProduction and Operations Management, 14
- Publisher
- INFORMS
- Copyright
- Copyright © INFORMS
- Subject
- Research Article
- ISSN
- 0092-2102
- eISSN
- 1526-551X
- DOI
- 10.1287/inte.1070.0333
- Publisher site
- See Article on Publisher Site
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.
Journal
Interfaces – INFORMS
Published: Feb 1, 2008
Keywords: Keywords : supply chain risk management ; inventory management ; operations ; planning ; procurement ; structured contracts