image of people in blue uniforms and gloves working on electronics parts
Case Study:

HP Inc.

A 20+ Year Partnership: HP Inc. and PRIDE Industries

In 1998, PRIDE Industries began sorting and packaging computer related products for HP Inc. Then, in 2003, we were selected to provide additional services for HP Inc.’s commercial and personal printers, spare parts, and related devices.

Situation

Having relocated the bulk of its operations to Kentucky, HP sought a partner that could handle procurement and planning as well as purchase order management, packing, and shipping for its printer parts and components—while saving HP money and helping them meet their Diversity, Equity, and Inclusion (DEI) goals.

Solution

PRIDE Industries had, since 1998, earned HP’s trust through the sorting and recycling services we provided for their products. Then, in 2003, when HP selected us through a competitive bid process, we began providing supply chain management and global fulfillment services for their commercial and personal printers. Not only did our procurement and planning teams manage supplier relationships and the bulk of supply-chain links for this project, we also created a unique, proprietary system that acts as an interface between HP’s and PRIDE Industries’ Enterprise Resource Planning Systems (ERPs).

PRIDE Industries’ procurement team manages supplier relationships, including purchase order management, delivery performance, and escalations. Additionally, PRIDE Industries’ planning team performs forecasting/demand planning, creates material purchasing requests, manages part setup and maintenance, carries out lifecycle planning activities, implements part-roll tasks, and provides overall operational project management support. The HP Inc. program at PRIDE Industries is a global, 24-hour operation. Our team of supply chain planners, buyers, and business support assistants focus on striking the optimal balance between supply chain inventory levels and high customer level-of-fill targets.

After demonstrating business excellence to HP, we acquired two more HP Inc. business segments:

  • Spare Part Fulfillment program to support HP Inc. Print business acquisition
  • PRIDE Industries is the sole HP Inc. North America regional distribution center for their printing and copier spare parts needs.
  • PRIDE Industries manages the spare parts return program via the HP iReturns system and cross-docking activities.


“This partnership has been great for furthering our mission to create jobs for people with disabilities,” says HP Program Manager for PRIDE Industries Ralph Mendez.

Services Provided

  • 267,000 square feet of dedicated warehouse space for the program
  • Technical expertise for forward/reverse logistics and supply chain management
  • Systematic interface/infrastructure
  • Proactive management

Results

  • PRIDE Industries was named Global Service Supplier of the Year for HP Inc.
  • > 37K active part numbers (SKUs) managed
  • 43.5K average monthly units shipped
  • 800 average orders per day
  • 1,311 average sales order lines per day
  • 98% same day shipping
  • 93% level-of-fill requirement met
  • $32.1M HP-consigned inventory managed
  • 30 weeks of supply (including end-of-life)
  • 60% cost savings from consolidation as a percentage of consolidation activity
  • 16% cost savings from consolidation as a percentage of HP/PRIDE Industries logistics spend
  • > 200 kits managed
  • 221 average monthly kits built per day
  • 99% on-time shipments
  • 6-7 weeks of PRIDE Industries-owned inventory

Awards

  • PRIDE Industries was named Global Service Supplier of the Year for HP Inc.
HP Logo

Highlights

By the end of July 2021, the Lincoln, Calif. facility employed 52 staff, nearly a quarter of whom have a disclosed disability.

43,500

average monthly units shipped in FY20

267K sq. ft.

of dedicated warehouse space

$32.1M

HP-consigned inventory managed

"PRIDE Industries is a proactive partner who exceeds their performance targets. I’m in love with the mission and in love with their performance."

Director, HP Inc. Americas Service Supply Chain

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