Lenovo 2011 Annual Report Download - page 19

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2010/11 Annual Report Lenovo Group Limited 21
Lenovo’s new global branding campaign “Lenovo: For Those Who Do”
GLOBAL SUPPLY CHAIN
Following a very turbulent period in the previous two fiscal
years, Lenovo’s global supply chain faced relatively favorable
and stable cost and supply conditions in its markets for key
commodities such as memory, LCD panels and storage, as well
as logistics services. These conditions, combined with strong
sales performance, provided momentum for the Group to
effectively scale its supply chain and improve profitability.
Lenovo’s global supply chain made substantial gains in scaling
its operation during the fiscal year to support the Group’s rapid
worldwide growth in unit shipments and market share. There
were across the board improvements in end-to-end cost-per-
box, which reached its historical lowest mark with an 11 percent
year-on-year improvement. Furthermore, product delivery
performance reached new, record-high levels with significant
reduction in order-to-delivery cycle times and increased reliability
in meeting customer expected arrival dates. Lenovo also
leveraged its ongoing Lean Six Sigma program to improve
overall business efficiency, with projects generating hard cost
savings of US$161 million across the Group, exceeding the
corporate plan by almost 70 percent.
Lenovo’s global supply chain also strengthened its operational
foundation to support future growth and product line expansion.
The Group signed an agreement and began construction on
a major operations center in Chengdu, Sichuan Province in
western China. This center, scheduled to open in late 2011,
will substantially increase Lenovo’s overall production capacity,
while improving operational speed and efficiency of the supply
chain network. Lenovo will continue employing a mix of in-
house and outsourced manufacturing, an operational strategy
that provides the flexibility to respond quickly to market demand
while delivering industry-leading quality products to customers.
BRAND BUILDING
Lenovo took the next step in asserting its position as a global
leader by launching its new global branding campaign. Known
as “Lenovo: For Those Who Do,” the campaign captures the
essence of who we are as a company, and the customers we
serve. Lenovo does more than just build technology; it creates
engines for the world’s doers and the mind-blowing things they
create. The Group’s breakthrough products are made to serve
people on the quest to build what’s next.
Lenovo understands the doers of the world because that’s
who we are. Throughout our history, Lenovo has dared to do
before others have thought to try. At the CES, Lenovo again
showed it technological leadership, with products such as the
ThinkPad X120e, one of many products to win awards at CES.
The Group will continue its innovation leadership in the year
ahead by launching more bold products – particularly in the
mobile internet space – to provide “Do Machines” that inspire its
customers to pursue their passions.