Hewlett-Packard Co and Cap Gemini SA have formed a joint selling and delivery alliance that they say will greatly improve the delivery speed and added value of integrated supply chain management (ISCM) solutions.

The non-exclusive alliance, which will initially be rolled out in Europe, brings together Cap’s ISCM consulting skills with HP’s software and server technologies as well as specialist supply chain management software vendors. The range of services on offer covers business process re-engineering, implementation, capabilities development and systems management. Cap and HP will deliver their ISCM solutions to a number of vertical sectors, beginning with the automotive and transport and distribution.

Cap expects that the alliance should help it to reach its target SCM revenue of 250m euros ($269m) this year, an increase of some 50% over 1998. Chris Webster, head of integrated supply chain for Cap in the UK, believes that between 20% and 30% of Cap’s ISCM business may result from proactive selling of the alliance with another 30% involving HP in a more indirect fashion. HP will no doubt benefit from increased server sales but may also be interested in leveraging Cap’s experience in hosted supply chain management solutions to boost its own services capabilities.

The alliance will be promoted through Cap’s ISCM Solution Centre in Paris, which opened in January 1999. From here Cap, HP and the alliance’s software partners can demonstrate and highlight the value of ISCM solutions to prospective customers.

HP and Cap have both made considerable investments in SCM. For instance, in April 1999 HP introduced its HP 9000 N-Class Enterprise Server, a new midrange server optimized for environments such as integrated supply chains with support from software providers including SAP, PeopleSoft, Oracle, Baan, i2 and Manugistics. HP claims an installed base of hundreds for its SCM solutions. ISCM has also been singled out as a major operational focus for Cap, along with other value-added services customer relationship management and e-commerce.

Both companies have already forged a number of partnerships with leading supply chain product vendors including I2 Technologies, Manugistics, Numetrix and SAP. HP also has a similar arrangement to the new alliance with big five accountancy Ernst & Young LLP.