Optimizing the Compaq Canada Supply Chain

Ricki G. Ingalls
Oklahoma State University
Stillwater, OK 74078


In 2000, the Canadian subsidiary of Compaq Computer Corporation knew that their competitive position was being threatened in the region.  They understood that the company had to drastically change its approach to the supply chain that had existed for over 15 years.  A complete redesign of the Compaq Canada supply chain was undertaken and the resulting supply chain redesign was shown to have cut the non-material cost of the Canadian supply chain by over 15% and added approximately 1.5% to net profit. This presentation will outline the project that redesigned the Compaq Canada supply chain, the issues involved in the project, and the key decisions that were made that completely revamped how the subsidiary approached the supply chain issue.