HP Global Physical Supply Chain Security Ensuring integrity and resilience in a complex global environment

Introduction The modern supply chain is a complex, dynamic global network that involves numerous stakeholders, technologies, and processes. In such an environment, the security of the supply chain is an operational imperative. At HP, we are committed to ensuring the security and integrity of our supply chain. Our commitment to security is end-to-end—beginning with the movement of raw materials into our manufacturing facilities and continuing through to the final delivery at our customer sites or to our facilities that support HP’s sustainability efforts in the circular economy. We recognize the critical importance of ensuring the integrity and resilience of our global supply chain to safeguard operations and products, as well as to protect our customers and partners.

The importance of supply chain security Supply chain security encompasses the strategies, processes, and technologies implemented to safeguard the supply chain from theft, tampering, cyberthreats, counterfeit products, physical disruptions, and other risks. An effective supply chain security framework is essential for maintaining business continuity, protecting intellectual property, and ensuring the delivery of genuine and safe products to end users. Strong supply chain security practices are fundamental to supporting the value of the HP brand.

Theft Cargo is at the greatest risk of theft when stationary and is a target of both organized criminal groups, as well as those who steal it as a crime of opportunity. Many of these thefts are committed using traditional methods. However, criminals are devising more elaborate methods, such as fictitious pickups, where they assume the identity of legitimate carriers to steal cargo.

Tampering The tampering with or introduction of illicit or harmful material into cargo is of increasing concern. This is due to the potential for criminal cartels and unauthorized third parties to attempt inserting items into legitimate cargo shipments.

Vendor and supplier risks The involvement of multiple vendors and suppliers introduces complexities and potential vulnerabilities that require diligent management and oversight.

Cyberthreats With the increasing reliance on digital technologies, supply chains are vulnerable to cyberattacks that can disrupt operations, steal sensitive data, and compromise product integrity. To learn how HP is addressing these threats, please see the HP cybersecurity hp.com/security.

Counterfeit products The proliferation of counterfeit goods poses a major threat to brand reputation and consumer safety, necessitating robust mechanisms to authenticate and verify the origin of products.

Physical disruptions Natural disasters, geopolitical tensions, and logistical challenges can cause significant disruptions to the supply chain, affecting the availability and timely delivery of products.

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HP's approach to supply chain security HP has developed a comprehensive supply chain security strategy that addresses these challenges through a combination of robust policies, advanced technologies, and strategic partnerships. We collaborate with several worldwide professional industry security associations and global government regulatory programs to establish the baseline for our security program. We then build on these standards to develop the HP Supply Chain Security Requirements, ensuring we remain an industry leader in our commitment to the security of our supply chain.

This strategy is built on the following key pillars:

Risk assessment and mitigation HP conducts thorough real-time risk assessments to identify potential vulnerabilities within our supply chain. This includes evaluating the security of vendors and logistics providers, as well as assessing the risks associated with transit modes and routes. We also continually monitor intelligence briefings from both government and private sector entities worldwide to identify any threats and to take both proactive and reactive actions. In countries where regulations allow and facilities are available, HP requires that all overnight and prolonged stops be made only at secure parking facilities. When a risk assessment identifies an extreme risk, we may also use security escorts and/or secure transit vehicles.

Vendor and supplier management HP implements stringent vendor and supplier management practices to ensure compliance with our security standards. This involves developing vendor requirements, conducting regular audits, and implementing a robust vendor evaluation program. By fostering strong relationships with our trusted partners, HP maintains a secure and reliable supply chain network.

Implementation of advanced technologies To enhance supply chain security, HP leverages advanced technologies such as GPS tracking, geofencing, digital locks, drones, and robotic devices to aid in our security program. Each of these technologies is deployed based on a risk assessment that considers the cargo's value, the risks of transit lanes, and the sensitivity of any specialized cargo.

Employee/vendor training and awareness HP recognizes that the human element is crucial in maintaining supply chain security. Therefore, we have training programs to educate our employees about security best practices, threat awareness, and incident response. These practices are also mandated for all supply chain vendors. By fostering a culture of security awareness, HP empowers both our workforce and vendors to play an active role in safeguarding the supply chain.

Collaboration with industry and government HP actively collaborates with industry peers, government agencies, and international organizations to share best practices, intelligence, and threat information. Where appropriate, we often play a leadership role in critical organizations. This collaborative approach enhances HP's ability to anticipate and respond to emerging threats while also contributing to the overall security posture of the global supply chain community.

Future directions in supply chain security As the supply chain landscape continues to evolve, HP remains committed to advancing our security practices through ongoing innovation and strategic investments.

Future directions in supply chain security at HP include:

Integration of AI and machine learning AI and machine learning capabilities will play an increasingly important role in supply chain security. By analyzing vast amounts of data, these technologies can identify patterns, predict potential risks, and enable proactive measures to mitigate threats.

Sustainable and ethical sourcing HP is committed to promoting sustainability and ethical practices within our supply chain. This includes ensuring the responsible sourcing of materials, reducing environmental impact, and upholding human rights and labor standards. By integrating sustainability into our security framework, HP aims to create a resilient and socially responsible supply chain.

Collaboration and information sharing HP will continue to collaborate with industry partners, government agencies, and international organizations to share information, best practices, and threat intelligence. Where it makes sense, HP personnel will continue to take leadership positions within critical organizations. This collaborative strengthens the collective security posture of the global supply chain community and fosters a culture of continuous improvement.

Conclusion In an increasingly interconnected and complex world, securing the supply chain is paramount. HP's comprehensive supply chain security strategy, built on risk assessment, vendor management, advanced technologies, employee training, and collaboration, ensures the integrity and resilience of the global supply chain. By continuing to innovate and adapt to emerging threats, we are well-positioned to safeguard our operations, products, and customers in the face of evolving challenges, keeping our supply chain secure in a future-ready manner.

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4AA8-4770ENW, April 2025.

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