Reuters · Tuesday, Jun. 29, 2010
HONG KONG - The printing division of Hewlett-Packard Co, the world's largest PC firm, has been cutting down on the number of contract manufacturers it uses since the downturn hit in 2009, a senior executive said.
Cost savings derived from simplifying its supply chain had gone into spending on research and expanding its sales team, Vyomeh Joshi, the global head of HP's imaging and printing division, said in an interview in Hong Kong late on Monday.
"When the economy was doing great, we were shipping more and more units, probably we were not efficient," Joshi said, but declined to name specific companies. "So when the economy went down and people were delaying buying decisions, we took a look and said we don't need all this."