April 2000

HP Introduces the Next Generation of Office-supplies "Smart" Vending Machines

HP EXPRESS Combines Consumer Convenience with an Enhanced E-commerce Solution

Hewlett-Packard Company today announced the next generation of its convenient, instant and automated office-supplies delivery system: HP EXPRESS Office Supplies E-Station. HP EXPRESS (formerly HP Supply Store) combines electronic commerce with instant product access to give consumers a more efficient and cost-effective office-supplies management and procurement experience.

The HP EXPRESS Office Supplies E-Station makes it easy and cost-effective for consumers in large offices and multi-tenant office buildings to access supplies. HP introduced its first "smart" vending machine program in November 1997, and the program quickly gained market acceptance. HP EXPRESS, which builds on that experience, now offers enhancements that, collectively, create an interactive environment that tracks usage levels and purchasing patterns. The result is that corporate consumers get the right office supplies in exactly the right quantities when they need them:

• More products -- In addition to inkjet print cartridges and specialty media, laser toner cartridges and other supplies are now available.
• Scalable system -- The new platform provides the ability to incorporate other, non-HP office-supply product lines.
• Direct-billing solution -- In addition to credit and debit cards, the e-stations can be set up to bill established accounts directly.
• Management system -- Procurement or office managers are able to produce usage reports to better manage the ordering process. These managers also can learn who is accessing the machine, what is being purchased and tailor the e-station accordingly.

HP's strategy is to provide convenient access to supplies where supplies are commonly used, whether that's an individual office, a common area in a multi-tenant office building or near an office-supply store that is open less than 24 hours a day.

"HP EXPRESS is a perfect union between Internet e-commerce and retail convenience," said Bob Broad, business manager for HP's supplies delivery program. "Our new systems enable building managers to offer an innovative service to their tenants and allow the businesses themselves to measure, control and manage inventory efficiently and to ensure that supplies are always available for their office output devices."

HP's Solution for Office-supplies Procurement

HP EXPRESS reduces the administrative burden on office managers because it provides improved controls and reporting mechanisms and offers a self-service process for employees.

The station's automated replenishment feature eliminates the need to track inventory levels and to reorder supplies manually. HP EXPRESS tracks individual employee usage and allows office supplies to be available around the clock, eliminating the need to overstock for emergencies. Accounting and other financial controls also are fully automated.

Additionally, because the HP EXPRESS system builds a purchase-pattern database at the e-station level, it can be used to cater to specific consumer needs. The physical presence of the e-station and its Internet responsiveness blends e-commerce with the traditional retail convenience of no delay between purchase and delivery.

"Business managers will have more information and improved controls in supplies procurement; channel partners will increase service levels and reduce costs; and multitenant office building managers will have a new service to provide their tenants," said Broad. "As the program expands, we believe HP EXPRESS will become as widely used as ATM machines and express delivery drop boxes."

Most recently, HP installed six HP EXPRESS e-stations at select business parks and multitenant office buildings in the Houston area with additional installs taking place later this month. There are 21 machines currently located in Phoenix and Tempe, Ariz. Later this year, consumers will have an opportunity to take advantage of HP EXPRESS e-station services in the San Francisco Bay area and Chicago.