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Collaboration in the cloud: How Lenovo is teaming with E2open to improve global supply chain execution
Technology Category
- Platform as a Service (PaaS) - Connectivity Platforms
- Platform as a Service (PaaS) - Data Management Platforms
- Analytics & Modeling - Real Time Analytics
- Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries
- Electronics
- Software
Applicable Functions
- Procurement
- Business Operation
Use Cases
- Supply Chain Visibility
- Digital Twin
- Inventory Management
- Predictive Maintenance
- Remote Asset Management
Services
- Cloud Planning, Design & Implementation Services
- System Integration
- Software Design & Engineering Services
- Training
The Challenge
In 2005, Lenovo acquired IBM’s Personal Computing Division, which led to significant growth and revenue potential. However, the integration posed several operational challenges. Lenovo had to operate its global supply chain on legacy systems, which were expensive and lacked flexibility. The company needed to design and build a worldwide IT platform to transition from these legacy systems quickly and with minimal business disruption. The new platform required improved visibility, efficiency, and responsiveness to manage its growing trading network. Additionally, Lenovo aimed to drive business innovation, operational excellence, and unparalleled customer experience.
About The Customer
Lenovo is the world’s second-largest maker of personal computers (PCs) and is known for producing innovative products such as the ThinkPad® notebook, ThinkCentre®, ThinkStation®, ThinkServer®, IdeaCentre®, and IdeaPad® sub-brands. The company has a dominant position in China and has been expanding globally, outpacing the PC industry and nearly doubling its market share by 2011. Lenovo's expansion included key mergers and acquisitions, such as the German PC and consumer electronics company Medion and a joint venture with NEC to form the leading PC business in Japan. Lenovo's acquisition of IBM’s Personal Computing Division in 2005 for $1.75 billion marked a significant milestone, positioning the company as a global player in the PC space.
The Solution
Lenovo partnered with E2open to design and build a strategic, cloud-based solution for seamless information sharing, process management, and collaborative exception management. Lenovo deployed E2open’s any-to-any cloud platform, enabling data exchange in any preferred payload format and protocol. This automation allowed Lenovo to operate in a real-time, collaborative manner. E2open’s optimized onboarding methodology extended value to trading partners immediately, offering self-configuring connectivity options and eliminating costs associated with testing and infrastructure maintenance. Lenovo also focused on centralized procurement and software license management. By leveraging E2open’s solution, Lenovo gained direct control of strategic components purchasing, regardless of production location, using automated procurement processes from a single hub in Hong Kong. This capability enabled Lenovo to maintain market-competitive, volume-based pricing and the confidentiality of supply agreements. The procurement solution also supported Lenovo's global service network, enabling post-sale, warranty, and service providers to purchase materials at lower, pre-negotiated prices.
Operational Impact
Quantitative Benefit
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