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Examples
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But Falivene, whose background consists of operations and supply chain management experience with consumer goods and energy companies, knew right away that would not be enough to sustain long-term competitive advantage for HP, especially in an uncertain economy.
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Falivene and his team view their organization as the supply chain manager and procurement arm for HP's three businesses-the Personal Systems Group, Imaging and Printing Group and Technology Solutions Group.
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Now, Falivene and his team are working on integrating indirect goods and services spending at HP with that of one of the company's most recent big acquisitions, EDS.
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"It's as if we get a specification from the businesses," Falivene says of his organization's supply management strategy.
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"What is required to attain competitive advantage is to develop key strategic suppliers that act as partners with us," Falivene says.
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Falivene says, it is one that will develop new value and help HP sustain a competitive advantage.
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Falivene cites a supplier that provides HP with labor services in the Europe, the Middle East and Africa (EMEA) region that the company wants to work with in the Asia, Pacific, Japan (APJ) region.
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What is different about services is that once global procurement develops a sourcing strategy, it needs to execute not globally or even regionally, but locally, where business decisions are made in the countries where the company's facilities are located, Falivene explains.
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It has maintained a Corporate Supplier Diversity program Office for more than 30 years in the U.S., and Falivene adds that the company spends about $1 billion annually with diversity suppliers.
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Falivene says that HP is realizing significant savings from global procurement and the business units working together.
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