HP Targets Supply Chain Optimization in Latin America

Company unit buys SmartOps solution to determine best possible inventory and product availability plans

Pittsburgh — February 24, 2005 — Hewlett Packard will use a supply chain optimization solution from SmartOps in a Latin American division in a bid to determine the best possible inventory and product availability plans given inherent business uncertainties.

HP IPG Latin America, an organization of Hewlett Packard Corporation, has purchased a license for the SmartOps Multistage Inventory Planning & Optimization (MIPO) software solution.

According to SmartOps, MIPO is designed to enable customers to determine the optimal inventory and product availability plans given uncertainties, time-varying data, multi-location and inventory stage complexities, and aggressive customer service goals.

MIPO dynamically aims to generate optimal inventory targets for each stage of the supply chain, while providing visibility into each reason inventory is needed — including safety, cycle, pre-build, pipeline and merchandising stock requirements, by item or stock-keeping unit (SKU) — to meet desired service levels, SmartOps said.

The optimized inventory targets in version 3.2 of MIPO serve as critical inputs into enterprise resource planning and advanced planning and scheduling systems so that they function efficiently, delivering better intelligence for inventory planning and execution, according to the solution provider.

"By integrating the optimization algorithm to our current supply chain business platform we are in a position to continue to drive higher value while providing outstanding service level performance to our customers," said Salvador Romo-Fragoso, HP IPG Latin America supply chain development director. "This component is part of an advanced business architecture we are using for supply chain management."

"The decision of Hewlett Packard is a good example of how technology solutions companies are taking supply chain planning and execution to the next level," said Dr. Sridhar Tayur, CEO and founder of SmartOps.