Lenovo 2010 Annual Report Download - page 23

2009/10 Annual Report Lenovo Group Limited
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economy during the year, with a 4 percent increase
in unit shipments. Lenovo launched new Channel
friendly programs to engage business partners more
significantly in enterprise and public sector sales.
Key account business in China continued to lead
all regions worldwide with double digit growth and
an increase in unit shipments across all product
lines. Meanwhile, Mature Markets, which were most
significantly impacted by the economic downturn,
continued to experience a decline in unit shipments.
The Group’s transaction business continued to
build momentum around the world, and became an
important driver of market share growth. Lenovo grew
47 percent year-on-year in unit shipments during the
year.
Lenovo created a new unified Channel Partners
organization in the Mature Markets during the year
and held a number of partner events across the
regions demonstrating Lenovo’s re-investment and
commitment to its core Business Partner Channel.
This new channel organization helped simplify and
improve the Group’s relationship with business partners
resulting in an increase in the number of active partners
during the year.
Global Supply Chain
Lenovo’s global supply chain delivered across-the-
board improvements in end-to-end cost savings,
delivery performance, and quality during the 2009/10
fiscal year. Leveraging a dual supply chain model
tailored to Lenovo’s customer needs, Lenovo provided
the differentiation needed to successfully meet the
unique requirements of each market segment. This
segmented supply chain approach brought increased
efficiencies, responsiveness and performance to
the Group.
Lenovo achieved the lowest average cost-per-box in
the Group’s history with a 24 percent improvement
year-on-year. The Group significantly reduced its
material and structural costs, and improved order-to-
delivery cycle times for notebook PCs and desktop
PCs by 4 percent and 3 percent year-on-year,
respectively, through optimization of manufacturing
and logistics networks. Quality performance, as
measured by standard industry metrics, remained
extremely strong for Lenovo notebooks, desktops, and
workstation/server products.
Lenovo continued to optimize its manufacturing
footprint and global logistics networks to meet
customer needs and respond to market conditions.
Lenovo employs a mix of in-house and outsourced
manufacturing, managed by teams of supply chain
experts, providing the flexibility to respond quickly to
market and demand changes and the capability to
deliver industry-leading quality to its customers.
Brand Building
At the CES 2010, Lenovo asserted itself as a global
leader, not only in the PC industry but also in new
businesses, launching its smartphone business, new
mobile internet devices such as Skylight, and the new
ThinkPad Edge targeting SMB. Lenovo was the most-
decorated PC maker at this prestigious show, earning
awards across our entire product portfolio. The Group’s
breakthrough designs in existing product categories
and bold entries into the mobile internet space
reinforced Lenovo's position as an innovation leader
and demonstrated the added value we bring across
our entire product line.
Around the world, Lenovo continued its efforts to
present its brand in relevant and compelling ways
to key audiences. Partnering with Formula One’s
Vodafone McLaren Mercedes showcased how Lenovo
powered one of the most successful teams in the
world’s most technology-driven sport.
Lenovo partners with Formula One’s Vodafone McLaren Mercedes