HP weathers supply storm

HP weathers supply storm

THE ‘perfect storm’ that has caused a major backlog of orders for Hewlett-Packard hardware should pass by the end of this month.

At the same time as HP upgraded to a new supply chain management system, the company experienced a leap in new sales, creating the ideal scenario for the long delivery waiting times that ensued.

But, according to HP New Zealand personal systems general manager Donna Fyfe, the company has committed a large amount of resources to combat the problem, saying the channel should already have seen an improvement this week. “We are shipping huge volumes and should have everything back to normal by the end of this month,” she says.

Fyfe says the backlog was caused by logistical complications during the transition to the new system, Fusion, and was exasperated by a rise in sales.

Switching to the new system was the final phase in integrating the systems of HP and Compaq following their merger.

For Andrew Bain managing director of specialist HP distributor Exeed, the upgrade and increase in sales created a “perfect storm”.

“We had an incremental leap in sales in February at the same time the supply chain system was being changed.”

While not seeing any cancelled sales over the delays, Bain says they could have prompted some resellers to turn to other vendors. He adds the backlog affected Exeed’s ability to quote accurate stock arrival times. Fyfe is positive the issue will be resolved by the end of March.

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