Plastics Spend Strategy at HP

It's no surprise that HP, a Spend Management leader and innovator, deploys a risk-based analytical model to determine optimal sourcing strategies for its plastics and resins categories. According to this article in Modern Plastics, HP uses regression analysis "to study the volatility of polymer markets and to determine the key cost drivers over time. The analysis is also used to study the cyclical nature of those markets and the drivers of the cycles." While most other companies are still relying on limited category insight -- or at best, complete visibility into transaction-based purchasing data -- to make the right sourcing decisions, HP is gaining advantage in the market by taking strategy development to the next level. It's this type of advanced approach which will be necessary to leapfrog the competition when foundational Spend Management capabilities such as basic spend visibility and analytics become the norm.

Jason Busch

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