Contract Packaging Association 2005 Annual Meeting

Transcription

1 Contract Packaging Association 2005 Annual Meeting Presentations Day 1 The Roles of Contract Packaging within HP John Hayward, Mgr. ISS Packaging Eng, HP

2 The Roles of Contract Packaging within HP John Hayward Mgr, ISS Packaging Eng, HP 6 March Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

3 My role today Member of Institute of Packaging Professionals A Packaging Engineering Manager with Hewlett- Packard A user of Contract Packaging but one with a lot of needs March 05 2

4 HP Packaging Organization HP Global Packaging Team Personal Systems Group Image and Printing Group Technology Solutions Group March 05 3

5 Agenda HP and Outsourcing Trends in Outsourcing Wish list the Ideal Contract Packager Issues & Opportunities March 05 4

6 HP and Outsourcing March 05 5

7 HP s Marketplace Presence March 05 6 Back

8 Pre-Merger Compaq was already in Outsourcing We kept the luggables in the US LTE Notebook with Citizen Watch. Pentium Portables in Taiwan Desktops (Eastern Europe) Servers March 05 7

9 HP s Drivers for Outsourcing High Overhead the Invent in HP Manufacturing Rates Engineering Rates HP Definition of outsourcing Getting buy-in from the teams Freeze or reduce headcount Increased workload March 05 8

10 Design Outsourcing In-House Design X Resources Outsourced Design 1/3 X Resources March 05 9

11 What s Being Outsourced Manufacturing Routine Design Tasks Much of the New Product Introduction Process can be cook-booked Graphics Package design requirements Product testing March 05 10

12 Doing the math Engineer costs A.E.U. = 100 C.E.U. = 20 Std Mechanical notebook design: 3 A.E.U. s = 300 Or Engineering 1 A.E.U.+2 C.E.U. 140 Mgmnt/admin 1 C.E.U. 20 Logistics 1 C.E.U March 05 11

13 Product Phases Product Conceptualization Design Production Shipping & Distribution Service Consultant Consultant CM 3PL Contract Service Provider OEM ODM CP? March 05 12

14 Core Value Assessment If design is outsourced, what s left? Knowledge of a project s detailed needs Distribution, traffic, trade, customer profiles, environmental, design validation, cost optimization Management of the Outsourcing March 05 13

15 Trends March 05 14

16 Trends March 05 15

17 Why use a Contract Packager Lower Cost Depth of Knowledge Materials Best practices Parallel application in other industries Expertise = Quality Scalable Flexible March 05 16

18 Issues in Outsourcing Size and diversity of HP s Supply Chain Changes to our distribution environment More Direct distribution More focus on customization to customer needs (CTO) Complexity in outsourcing activity Regionalization March 05 17

19 Retail IPG RFID Plan Base Manufacturing In transit Product Completion Center Regional Distribution Walmart Walmart, Sam s Club and Neighborhood Market Stores AiO & Personal Printers Malaysia Flextronics FGI Direct AiO & Personal Printers Shanghai Calcomp Memphis Flex Memphis Menlo Walmart DC1 Sanger, Texas Scanners & Cameras AIO Shenzhen Mentor Media Bangkok Venture FGI Direct IDS Air Walmart DC2 Cleburn, Texas Toner Toner/ Personal Laserjet Hong Kong Canon Tokyo Canon FGI Direct Guadalajara Flex Walmart DC3 De-Soto, Texas Personal LJ InkJet Supplies Canon China Various Guadalajara Jabill Virginia Sonoco Supply Site Tag Site Delivery Site March 05 18

20 Geographic Scope RFID impacts businesses, operations and Customers in all Regions. Therefore program scope is global and pan HP in nature Commercial sites Retail sites And that s just for goods delivered into the USA! March 05 19

21 Need for Regionalization March 05 20

22 Derivative Label Application Regionalization Print On-Demand All volatile text Changes via print files New derivatives via print files for OS, 3rd Party Logos, etc. No scrap!! March 05 21

23 Trend Summary Outsourcing will continue in all areas Operations and Supply Chain are becoming very convoluted March 05 22

24 The Ideal Contract Packager March 05 23

25 The Ideal Contract Packager Packaging Engineering Capability Horizontal Integration World Class Supplier Deal-Maker March 05 24

26 The Ideal Contract Packager Engineering Capability Design Documentation CAD systems Test Capability Shock (PDT Drop min.) Vibration Historical substitute Depth of knowledge Willingness to diversify Address the single source issues March 05 25

27 Supplier Integration Forestry Vertical Integration Paper Mills Corrugator Sheet Plant March 05 26

28 Supplier Integration Horizontal Integration Thermoformer Foam Molder Foam Fabricator Sheet Plant General Supplies March 05 27

29 The Ideal Contract Packager World Class Supplier Why on earth would you design an application that we will use half way around the world? Cost of doing business with HP? Significant obstacle March 05 28

30 The Ideal Contract Packager is a deal maker We clearly have needs to be addressed We just don t have the bandwidth! March 05 29

31 Opportunities March 05 30

32 Issues & Opportunities - Design Pack consolidation Packaging optimization Incoming materials Regional designs Material selection Box replenishment program Engineering studies Optimization of cube = minimum freight charges March 05 31

33 Issues & Opportunities - Functional Engineering Change Notice control Material differences by region Supplier differences by region ODM management of suppliers 3PL Management of ISPM-15 March 05 32

34 Opportunities next step Partnership Identify our needs esp. the small stuff Propose solution package Execute with minimal support Transparent March 05 33

35 Opportunities next step (con t) Partnership yeah, sure, but. We can be our own worst enemy! Classic Procurement Function Cost, Cost, New territory for HP Packaging Staff No resources to train! ODM s are not connected March 05 34

36 Opportunities next step (con t) Approaching Large Corporations Identify buyers and coaches Work the need/solution/proposal cycle Be willing to understand out business Leverage successful partnership models Be a Broker Find a champion/sponsor Be patient March 05 35

37 The Promise of the Moment Opportunity The movement to outsourcing is still new territory The dynamics create the needs The Packaging Community Unique in its openness Sense of collaboration Let s Talk! March 05 36

38 March 05 37