Supply Chain

Q.3 How to improve supply chain network internationally?

The company can improve supply chain network by concerning about Three As of Supply Chain Management which will lead to low cost and supply chain efficiency.

Agility – Ability to react quickly to unexpected shifts in supply and demand.

1. Decrease the gap between PC vender and end user by provided more distribution center which is in the base of customers area.

2. Build manufacturing units in every geographic region it operated to save shipment time and cost.

3. Decrease PC production process by encourage suppliers and contract manufacturers to build their factories nearer to Lenovo’s plant or selecting to do a business with the suppliers or partners that located near to Lenovo’s plant. This will improve regarding the depreciation and logistic consideration.

4. Use their suppliers and carriers’ trucks, ships, and planes as their warehouse to reduce the inventory and also can swiftly serve the unexpected demand.

Adaptability – Ability to change supply chain configurations in response to longer- term changes in the environment and technology which requires the continuously monitor major geopolitical, social, and technological trend in the world.

1. Balance make-or-buy decisions whether it will produce components by itself or outsource from contractors for effectiveness purpose in term of cost and time.

2. Create one procurement center in one country, like a procurement hub, to process and handle with components purchasing regardless of where its finished PCs are produced. It will help enable Lenovo to maintain its

- Market – competitive

- Volume- based pricing

- Confidentially of the supply agreement

3. Maximized utilize the advanced and updated technology in supply chain, for example, partner with a leading global supplier of computer operating systems to create new initiative digital system. This will allow Lenovo to extend visibility and control, and reduce risk across the global...