Case Studies Collaboration in the cloud: How Lenovo is teaming with E2open to improve global supply chain execution

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	Collaboration in the cloud: How Lenovo is teaming with E2open to improve global supply chain execution

Collaboration in the cloud: How Lenovo is teaming with E2open to improve global supply chain execution

Technology Category	Analytics & Modeling - Real Time Analytics Functional Applications - Enterprise Resource Planning Systems (ERP) Platform as a Service (PaaS) - Connectivity Platforms Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries	Electronics Software
Applicable Functions	Business Operation Procurement
Use Cases	Digital Twin Inventory Management Predictive Maintenance Remote Asset Management Supply Chain Visibility
Services	Cloud Planning, Design & Implementation Services Software Design & Engineering Services System Integration Training
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. Read More
About 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. Read More
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. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Real Time Analytics

Functional Applications - Enterprise Resource Planning Systems (ERP)

Platform as a Service (PaaS) - Connectivity Platforms

Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Electronics

Software

Applicable Functions

Business Operation

Procurement

Use Cases

Digital Twin

Inventory Management

Predictive Maintenance

Remote Asset Management

Supply Chain Visibility

Services

Cloud Planning, Design & Implementation Services

Software Design & Engineering Services

System Integration

Training

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 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.

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.

Impact #1	Lenovo achieved improved cash conversion cycles and strengthened market competitiveness through reduced purchasing costs of core commodities.
Impact #2	The company improved supply assurance and supply allocation abilities, reducing cycle time on supplier responses from hours to minutes.
Impact #3	Lenovo integrated physical and digital networks for better customer value and faster product innovation, leveraging digital keys for software activation.

Impact #1

Lenovo achieved improved cash conversion cycles and strengthened market competitiveness through reduced purchasing costs of core commodities.

Impact #2

The company improved supply assurance and supply allocation abilities, reducing cycle time on supplier responses from hours to minutes.

Impact #3

Lenovo integrated physical and digital networks for better customer value and faster product innovation, leveraging digital keys for software activation.

Benefit #1	Reduced onboarding time by 85%.
Benefit #2	Reduced IT costs by 53%.
Benefit #3	Reduced IT management costs associated with supplier integration by 70%.

Benefit #1

Reduced onboarding time by 85%.

Benefit #2

Reduced IT costs by 53%.

Benefit #3

Reduced IT management costs associated with supplier integration by 70%.

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Overview

Collaboration in the cloud: How Lenovo is teaming with E2open to improve global supply chain execution

Operational Impact

Quantitative Benefit