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25
Lenovo Group Limited • Annual Report 2007/08
Pursue Operational Excellence
Driving operational excellence is an indispensable part of
Lenovo’s profitable growth strategy. Over the past two
years, the Group focused on improving efficiency in its
global supply chain and realized significant improvements
through relentless focus on improving various management
processes and implementing efficiency enhancement
projects. As a result of streamlining the global supply
organization including Lenovo’s logistics network, it further
improved its notebook and desktop serviceability by 10
percent and reduced end-to-end supply chain cost per box
by 17 percent year-on-year in the 2007/08 fiscal year.
In the 2008/09 fiscal year, Lenovo will continue its focus on
key areas to create additional efficiency. First, Lenovo will
complete the expansion of its global manufacturing
footprint and operate its own facilities closer to its customer
base in key geographic regions. Second, Lenovo will
expand the reach and impact of the Lean Six Sigma
application in the global supply chain and across the
company. Third, Lenovo will continue to improve its
logistics network, forecast accuracy, product transition
process, and materials management processes to drive
Lenovo toward best-in-class worldwide.
Besides driving efficiency in its existing operation, Lenovo
will also ensure prudent scaling of expenses as it expands.
In addition, it has put in place a business management
system that will help ensure its geographies and business
units invest appropriately to grow the Group’s core
business and drive growth in its priority businesses going
forward.
Lenovo Expanding its Global Manufacturing Footprint
Monterrey, Mexico*
Legnica SEZ, Poland*
Pondicherry, India
Beijing, China
Shenzhen, China
Shanghai, China
Manufacturing
Fulfillment Center
Huiyang, China
* Expected to be operational in FY2008/09
Baddi, India
Greensboro, USA