Supply Chain Is Integral To Lenovo's Strategy

Lenovo CEO Yuangqing Yang, Source:

Chinese technology giant Lenovo Group is planning to boost its slumping smartphone business with a revamped manufacturing supply chain and major global marketing strategy this year. According to Gartner Research firm,

Worldwide smartphone sales is expected to grow 7 percent this year, reaching 1.5 billion units cooling from 14.4 percent growth last year

Lenovo initially owned 6.4 percent of global market share before March 2015, and is now experiencing intense competition from mainland China and other large markets.

Lenovo started the restructuring of its mobile phone business since Q3 in 2015, including a $300 million write-off of its smartphone inventory. Lenovo is expected to have a big advantage over its competitors once the manufacturing supply chain of its smartphone business is fully implemented.

“We’re working to leverage our personal-computer supply chain know-how for the smartphone business,” said Gianfranco Lanci, Lenovo Chief Operating Officer.

This means that the assembly of products are in the same factory to save component costs and decrease production cycle times.

“What we’re trying to do is simplify our brand architecture, which means putting more marketing resources on the products which offer the most differentiation for Lenovo,” comments David Roman, Chief Marketing Officer at Lenovo.

The recovery in Lenovo’s smartphone business would also depend on the demand for its recently launched Phab2Pro, which is the world’s first smartphone with augmented reality technology.

A version of this appeared in South China Morning Post on June 21. Read the full article here.

Indonesia’s logistics costs are 24% of GDP, currently the highest in the region. The country’s logistics performance index (LPI) also lags behind its neighboring countries like Malaysia, Thailand, and even Vietnam, according to World Bank but Hong Kong-based digital logistics startup OpenPort is attempting to lower Indonesia’s logistics cost via technology.

The platform enables clients to track the entire distribution process – claiming to cut companies’ logistics costs by up to 30% by cutting out the middleman. Connecting shippers and carriers via OpenPort’s digital platform will also replace the inefficient paper-based process, decreasing the time it takes carriers to receive payment from three months to one month. Their cloud-based digital logistics platform will allow the supply chain to be managed entirely in house, solving headaches for many logistics companies in the archipelago.

“With more than 17,000 islands scattered across the country, Indonesia needs to make its logistics and supply chain management system more transparent and more efficient, and it is impossible to do so without deploying technology and systems that can seamlessly monitor processes and cut out inefficiency wherever possible.” said its chief executive officer, Max Ward.

The Indonesian Logistics and Forwarder Association (ILFA) has highlighted that the republic can unlock a potential US$250-billion worth of value in the logistics market if it could make the sector more transparent and cut out hidden costs.

The startup plans to expand its operations in Indonesia to Surabaya where the major Perak Port is located.

A version of this appeared in Digital News Asia on June 14. To read the full article, click here.