Shulou(Shulou.com)11/24 Report--

From June 15 to 16, 2023, Zhang Wei, vice president and head of mobile device supply chain of Lenovo Group, was invited to attend the eighth China Digital supply chain Innovation Summit in 2023. Mr. Zhang Wei shared Lenovo's practice and insight in the supply chain field with the attendees.

Richard Zhang Wei is the head of Mobile device supply chain (MDSC,Mobile Device Supply Chain) under the global supply chain platform of Lenovo Group.

Lenovo's global supply chain helps the company's diversified growth engine

Lenovo Group (hereinafter referred to as Lenovo) operates in more than 180 countries and regions, has more than 2000 global suppliers, has about 77000 employees worldwide, serves more than 1 billion users worldwide, and provides hundreds of millions of smart terminal devices to global users every year. including computers, tablets, smartphones and so on. Lenovo has invested a total of $150 million in digital transformation, which has significantly improved operational efficiency and intelligent decision-making through digital and intelligent means.

With its global, intelligent, hybrid manufacturing model of both leading supply chain capabilities, won the global honor recognition:

 was selected as the top 25 global supply chain in Gartner 2023, ranking eighth.

 was selected as one of the top 10 supply chains in the Gartner 2022 Asia-Pacific region.

 MSCI ESG rating upgraded to AAA

 IDC supply chain Science and Technology leadership Award

 Lenovo Hefei factory selected as global lighthouse factory

In the face of the crisis in the increasingly complex environment, we have a forward-looking supply chain strategy to prevent problems and promote the diversified growth of the company. Lenovo puts forward the intelligent change strategy, and becomes the leader and enabler of intelligent change in the industry around the three directions of intelligent Internet of things (Smart IoT), intelligent infrastructure (Smart Infrastructure) and industry intelligence (Smart Verticals). It is undertaken by three business groups, Intelligent device Group (IDG), Infrastructure Solutions Business Group (ISG) and solution Services Business Group (SSG) respectively. In fiscal year 2022, Lenovo's annual turnover reached 424 billion yuan and net profit reached 12.9 billion yuan, of which 60% of PC business came from non-PC business. Lenovo has achieved remarkable results in building diversified growth engines.

Supply chain resilience helps GSC overcome many challenges

At present, Lenovo's supply chain is a global network layout, with more than 30 manufacturing bases around the world, a hybrid manufacturing model of self-owned factories and suppliers, and the excellent operation principle of "global resources, local delivery". Through the layout of this global network, we can achieve a balanced development of cost, quality and efficiency.

During the epidemic in the past three years, Lenovo's business has been advancing by leaps and bounds, and the tablet business has doubled. On the basis of making full use of the advantages of resources around the world, Lenovo can dynamically coordinate global supply and production, and achieve seamless connection with local delivery to meet customer requirements, fully ensuring the strong service resilience of Lenovo's global supply chain in a complex and uncertain environment.

Digital Transformation promotes the Construction of resilience

Through years of continuous investment, Lenovo has basically reshaped the intelligent supply chain end-to-end, including artificial intelligence technology, advanced analysis, Internet of things, robot process automation, autonomous objects and so on. These technologies have been well applied within Lenovo. Lenovo is also relying on its own digital practice to accelerate the intelligent transformation and achieve external empowerment. Now we have made great efforts to promote DT2.0 internally, which has further achieved interconnection and interconnection. Through DT2.0, we have achieved a fully interconnected operation platform with our partners, including agents, customers, back-end suppliers and logistics providers, to achieve information sharing, intelligent collaboration and efficient decision-making.

Planning is the core of our operation, planning management is not to build cars behind closed doors and form isolated islands, but to make collaborative planning with customers, suppliers and logistics providers by digital means to achieve rapid end-to-end, upstream and downstream data communication of the entire industrial chain, and to discover all kinds of potential risks in time. In 2020, in the face of shortage of materials and short supply of materials, Lenovo was able to grab more market share with sufficient materials; during the decline of the whole market in 2022, some competitive products had a large amount of sluggish inventory. Lenovo's inventory is very benign.

In the procurement side, we have more than 2000 major suppliers, the quotations of suppliers rely on digital to complete, is a complete realization of digital procurement. For example, when we implement risk management, we require each supplier to enter into our database at the guidance base and production base around the world, and analyze it through big data. For example, if there is an earthquake, strike or political crisis somewhere, we inform the supplier to verify the investigation, which improves our ability to deal with uncertainty.

In the logistics intelligent system, Lenovo integrates multi-system and full-service data through the deployment of new technologies, and interacts real-time and dynamically with the data flow of third-party logistics carriers (3PL). It also realizes multi-entry and multi-platform compatibility. The logistics network information can be compatible with the time zone and regional transportation characteristics of more than 180 regions around the world, and accurately present shipping data, logistics nodes and real-time IoT data.

Our intelligent manufacturing 18 martial arts, from customer orders, to product production, and finally to customer distribution of the whole process, the whole scene of automation and digital integration. There are unique intelligent technologies and solutions in intelligent scheduling, production equipment management, production line automation, 5G intelligent environment and other application scenarios. These solutions help Lenovo to maintain stable and efficient operations in an increasingly complex environment.

Comprehensive visual new product introduction system, intelligent new product introduction management system Intelligent New Product Introduction (i-NPI), which transfers R & D achievements from R & D to supply chain and successfully realizes mass production, is a "one platform", "one portal" and "full link service" new product introduction business ecosystem, which covers the main business models and processes of new product introduction, and transfers the management of new product introduction from offline to online. Realize the visualization, transparency and traceability of end-to-end data and processes, and effectively avoid the emergence of data islands. In addition, it also changes complex work from manual to automatic through intelligent tools, and provides intelligent decision-making, which greatly improves efficiency and shortens the product introduction cycle.

Now the popularity of folding screen mobile phones has become the new darling of the mobile phone market. Lenovo also released the third-generation folding machine Motorola Moto Razr on June 1, which went on sale immediately. Motorola Moto Razr balances consumer "freshness" and product "reliability". It not only creates a precedent of flexible screen technology with advanced "droplet hinge" technology, but also has high durability and stability. This is thanks to the help of the i-NPI system.

It is worth mentioning that Lenovo Group won the "Outstanding Digital Transformation Award" for the construction of MDSC Intelligent NPI (i-NPI) system.

In terms of quality, we have also built a digital quality platform. Lenovo's quality system is completely docked with the supplier system, and we can even see the supplier's production and quality control on the same day. These data can be shared in real time through our EDI connection. On the basis of solid data, MDSC also developed its own analysis and prediction model to create an end-to-end data management system based on the whole life cycle of product quality, including R & D quality, supplier quality, manufacturing quality and after-sales quality, so as to improve customer satisfaction. Improve the efficiency of quality analysis through standardized data flow and data structure model-X Model; use natural language processing technology to build quality data acquisition and user feedback analysis automation tool-On-Device Feedback; self-developed post-sale repair prediction model-EIW (Early Insight Warranty) model with the help of neural network and machine learning and other AI means. These measures help to improve the accuracy and efficiency of quality data, improve product quality, so as to achieve higher customer satisfaction. This comprehensive quality data management system won the "data Service Excellence Award".

Common development, perseverance and wisdom

In addition, the risk management of Lenovo supply chain has established three lines of defense, from the risk self-correction of each functional team, to cross-departmental collaborative governance, and then to Lenovo supply chain internal self-inspection, risk audit, have a sound management mechanism. Then from risk identification to resolution, to supervision, also formed a closed-loop system. The existence of supply chain risk management mechanism can enable us to prepare in advance, actively and flexibly deal with the uncertain and complex external environment, think well and turn adversity into opportunity.

The resilience and intelligence of the supply chain is the solution to our problem in the current turbulent environment. Lenovo actively gives full play to the value advantage of "chain master" to promote the transformation and upgrading of the upstream and downstream of the industrial chain. We also invite friends and partners in the industry to work together to build a resilient and intelligent supply chain and work together for common development.

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