Customer centricity is being made the top priority at Lenovo, according to the company’s logistics boss.
Gareth Davies, head of global logistics at Lenovo Group, said it was essential to build programmes around customer experience.
Speaking at the Gartner Supply Chain Executive Conference in London, he said: “It’s a focus on customer centricity. People don’t want another piece of plastic in their homes.” Instead they want the ability to do things such as communicate with family and organise their social lives, he said.
“What we are actually selling are things that enable people to enable their dreams, hit their objectives, and we try to make sure everyone in our organisation has that mindset,” he said. “In a small way in logistics we are delivering against their dreams. It gives you a different perspective.”
Lisa Callinan, research director at Gartner, said: “Customer experience will overtake price and product as the key differentiator.”
Davies said acquisitions by Lenovo had made its portfolio “more complicated” and “our customer base has changed” which has “made problems for logistics”.
Alongside this, its logistics operation is dependent on third-party logistics providers, shipping companies and road and rail services.
He said factors including 70-75% of ships arriving on time, a lower capacity for cargo in air freight, rail and road driver shortages, and regulations around working hours created challenges.
Davies said Lenovo was using collaboration, digitalisation and end-to-end modelling to find answers. “Where do the commodities come from? How do they get to a factory and how do we ship them out?”
He said closer relationships with suppliers were part of the solution. “We are moving deeper and deeper into vested partnerships,” he said.
“How can we move to cost out, rather than cost down?”
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