From Order to Delivery: The Efficiency of Lenovo’s Supply Chain

A few months ago, I needed a new laptop.?

I’d accidentally damaged my ThinkPad X1 Carbon. I know what you’re thinking: “Marco, you work for Lenovo. Surely you can simply go through an internal process to replace your device quickly”.?

And you’re right. I could. But I didn’t.?

Instead, I visited Lenovo’s e-commerce site on a Saturday afternoon. I browsed through my options to configure a custom device to my specifications. The laptop was manufactured on Sunday and delivered to me by Wednesday.?

And — it’s important to note — I didn’t place this order as an executive at Lenovo. Or at least the people and processes that power our supply chain didn’t know that it was a Lenovo employee. To them, I was simply a customer.?

That’s how it should be.?

At Lenovo, we focus on a customer-centric approach, highlighted brilliantly by Dilip Bhatia in his article Use Customer Journey Mapping to Elevate Customer Experience . In it, he writes about how customer mapping can help put yourself in your customers’ shoes, and have them explain their pain points, observations, and ideas for improvement.?

In a way, my experience ordering a new laptop was just like customer mapping—I was the customer, and I experienced what it was like to order a product from Lenovo. I gained valuable insights into what it was like to walk in the shoes of a customer who embarks on a journey with us.?

The Engine Behind Lenovo’s Success: A World-Class Supply Chain

The experience I enjoyed wasn’t an isolated incident but a testament to the strength of our operations and supply chain. We want our customers to have a seamless, efficient experience from the start to finish of their buying journey, and with good reason. A study by PwC found that 73% of all people point to customer experience as an important factor in their purchasing decisions, yet only 49% of U.S. consumers say companies provide a good customer experience.?

We want to be a company that delivers the difference. And I believe we are.?

Peers and analysts recognize our supply chain as world-class. Lenovo ranked in Gartner’s Global Supply Chain Top 25 for the fourth consecutive year. We’ve worked hard to gain this accolade across advanced planning, strategic risk management, and a commitment to sustainability and efficiency. From our Supply Chain Intelligence to our commitment to more sustainable practices in our supply chain, we’re committed to doing better. Our ability to deliver products rapidly and efficiently to individual consumers or large enterprises is a huge factor in our success.

Contrasting Customer Experiences: Single Purchases vs. Large Orders

My experience as a customer was purchasing a single customized laptop.?

But our supply chain is equally adept at handling large orders from enterprise clients. Involving thousands of units, these orders require meticulous planning and execution on every level. For example, since becoming operational in 2022 , Lenovo’s European manufacturing facility in Hungary has shipped over 1.5 million workstations and servers to over 2,500 customers in 70 markets across EMEA.?

We leverage the advantages of our global/local strategy for large customer orders. That means we have local facilities to deliver large quantities to local customers: Europe for Europe and the Middle East, the Americas for the Americas, and Asia for Asia. Lenovo’s global hybrid manufacturing network includes over 30 manufacturing sites spanning 10 markets in the 180 markets Lenovo does business.

This strategic flexibility ensures that Lenovo can meet customer expectations efficiently and sustainably.

Our Supply Chain and Transparency for ESG

Lenovo needs to meet its sustainability goals across every element of the business. We have some key measures to hit, and we are proud that our supply chain enables us to create ways to deliver bulk products to customers without compromising our sustainability goals.?

Our commitment to environmental, social, and governance (ESG) principles is integral to our supply chain strategy. We have various methods to support this with localized manufacturing hubs, using solar panels at manufacturing facilities, and selecting more sustainable transportation methods, reflecting our dedication to sustainability. For example,? we’re progressing a transition from air freight to road and ocean freight. In 2023, our use of ocean freight in EMEA increased more than 60 percent , showing our commitment to sustainability at every possibility. ?To show our commitment to ESG, by FY 2025/26, 90% of our global operations’ electricity will be obtained from renewable sources.

Using our advanced analysis and prediction systems, we also use risk management to take calculated steps to achieve these orders and delivery, such as pre-purchasing components. Our entire industry learned much from the manufacturing and logistics disruptions during the pandemic. If we face an equally large disruption, our supply chain is prepared. ?Using AI and machine learning technology, our Supply Chain Intelligence (SCI) continuously analyzes supply chain data to identify potential issues and propose solutions in real time. SCI performs over 1,500 data-related tasks every day that would be practically impossible for a human to uncover. That shows our commitment to creating as efficient and effective supply chain as possible.

For example, with the launch of the AI PC and our predicted forecasting, we were able to stockpile the materials necessary for the AI PC specifically to meet demand. This also means that material doesn’t need to be created with new orders: it’s there, ready, and ready to be integrated into new customer orders.

Lenovo Supply Chain: Excellence in Action

The Lenovo supply chain is a complex and finely tuned mechanism that ensures our technology reaches customers swiftly and reliably, whether it’s a single customized laptop or thousands of units for a large enterprise. This capability results from strategic foresight, informed risk management, and a commitment to customer satisfaction.?

As we move forward, new trends and products emerge, and our ability to adapt to these market changes, anticipate customer needs, and maintain transparency in our operations will drive our success.