Lenovo Supply Chain Strategy

With the acquisition in 2005, Lenovo jumped long from being the world's ninth largest computer company to the third largest. together with that came the challenge of integrating two sizable supply chains, that had completely different target markets and were in operation on an individual basis. once Gerry Smith joined Lenovo in 2006 he pushed to own one consolidated supply chain. There was lots of confusion - from procurement to producing to logistics - as a result of they lacked a singular, common purpose. Operations required to be stabilized first, then the work began to bring the supply chains along, with efficiency and systematically.
The first basic reasons was to Smith added veterans from dell, DHL, Flextronics and HP to slash the amount of KPI to five, making a far more versatile organization. once subjecting his top fifty managers to intensive coaching in business skills, such on a way to create a presentation and the way to read a P&L statement. As before he aforementioned he always believe that the organization is made to win, and it is not the generals they need to induce to. they need to induce to the captains and also the lieutenants who square measure leading to charge up hill.

Protect their key markets - which is China and their mature "Think" business with their company accounts. Attack their emerging, transnational markets and build a presence within the home or small business (SMB) segments across that house. This two-pronged business strategy, established in early 2009 by their chief operating officer, Yuanqing yang, additionally needed alignment of the availability chain to the customers in every market. To enable them to do so, they targeted on trade their supply chain operations to customer wants, closely managing supplier risk caused by volatile market conditions last