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This is the second of a three-case series. The (A) and (B) cases describe the evolution of HP supply chain for its PC business in Europe between years 1992 and 1999 and the different initiatives: build-to-order, vendor-managed inventory, supply hubs, top value, channel assembly program, etc. What should be the next step in this highly competitive environment?. Case (C) deals with HP strategy of outsourcing production to SCI, a contract manufacturer. The objective of this case series is to analyse the different strategies available to manage a supply chain in a very competitive and dynamic environment.