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WW DIRECT CUSTOMER ADVISORY COUNCIL: Order to Delivery

WW DIRECT CUSTOMER ADVISORY COUNCIL: Order to Delivery. Noe Gonzales and Rich Hollon January 2006. Order To Delivery. Feedback from October Update on Action Items Recommended Offering Notebook performance. Feedback from last meeting. October 2005

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WW DIRECT CUSTOMER ADVISORY COUNCIL: Order to Delivery

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  1. WW DIRECT CUSTOMER ADVISORY COUNCIL:Order to Delivery Noe Gonzales and Rich Hollon January 2006

  2. Order To Delivery • Feedback from October • Update on Action Items • Recommended Offering • Notebook performance

  3. Feedback from last meeting • October 2005 • In most countries, delivery is no longer a top issue – accounts for approximately 30 % of all issues • If HP misses SLA commitments and/or gives inaccurate commit date, delivery becomes an issue • Recommended Offering • Council members are willing to shift purchasing patterns to HP’s “sweet spot” unless there is a competitive advantage to do otherwise • Need list of recommended offering products during planning stages • Notebook delivery in the Americas is an issue • Need to understand plans to improve it

  4. Recommended Offering

  5. HP Recommended Offering Personal Systems (US) Notebooks and Desktops Live Industry Standard Servers (US)Pending Personal SystemsDesktops Live NotebooksMay ‘06 Industry Standard ServersPending Personal SystemsPending - Launch and expansion - tentative

  6. Recommended Offering Summary Why select from the Recommended Offering list? Predictable and Stable Order Cycle Time • Recommended offering is rolling out by the region on a Product Line by Product Line basis • Your sales team has access to RO product lists where available • Global Series Products will be a part of the RO program • If you base your company standard on global series products, it will fall under the recommended offering program • Delivery performance is living up to promise • US recommended offering notebooks are 6 days faster than non-RO • EMEA desktops are consistently 2 days faster

  7. Notebooks

  8. Notebook Delivery Challenges • Seasonality issues impacted all regions in FYQ1 • Get well plans have been executed • Large un-forecasted orders caused constraints in the US • Details for Canada will be supplied in a later presentation • Regional manufacturing and fulfillment models are underway • Relief expected by Summer of 2006 • Executive visibility • Notebook delivery performance is closely monitored by Senior VP sponsors via Hotpoint escalation process

  9. Performance Trends for Notebooks

  10. Performance Trends for Recommended Offering

  11. BENCHMARK PERFORMANCESelf-Analysis by Product Line (2006 YTD) Here is where we see our Order Cycle Time performance by product line BETTER: Consistent performance GOOD: Improvement still needed Critical Focus Area

  12. Notebook Hot Point Summary Hot Point Owner: Rich Hollon and Noe Gonzales Rationale for Recommendation to add Hot Point Customer complaints are showing up in CAC feedback that Notebook OCT does not meet customer SLA agreement, in addition HP’s internal OCT metrics for Notebooks are also outside of target range. • Numerous internal improvement initiatives have been launched • Backend order release – demand supply matching (dates TBD) • Material wait – order prioritization processes (on hold) • Factory RCTO Regional configure to order - (scheduled for summer 06) • In the meantime, notebook OCT continues to be inconsistent & off target • Americas has been beyond goal for 8 months • EMEA has been beyond goal last 9 months • APJ (including Japan) within goal in 1Q06, rest of region beyond goal for 6 months • Customer perception is that HP’s Notebook OCT has gone from bad to worse • Need to raise visibility of Notebook OCT issue with additional sponsorship to ensure Notebook OCT gain traction and show improvement

  13. FY06 Notebook Delivery FocusProposed Scope • Route To Market • Volume Direct • Segment • Commercial (Corp/Ent, PS) • Geographic Priority • Americas • EMEA • APJ • Process • Order to Delivery • Supply Chain Fulfillment Models

  14. Notebook OCT Hotpoint Hot Point Owner: Rich Hollon and Noe Gonzales Key Initiatives/Gap Status Conduct customer SLA review New Regional CTO Factory Deployments Summer ’06 Recommended offering programs EMEA - June ’06 APJ - TBD

  15. OTD Conclusions: Volume Direct Order Cycle Time will continue to improve and become more predictable as we focus on the following priorities:

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