Lenovo International Services Supply Chain

In response to changing market demands and customer preferences, many businesses are recognizing the value of service upsell as a strategic approach to enhance revenue growth and customer satisfaction. Lenovo International Services Supply Chain (ISSC) is responsible for global E2E after-sales service supply chain management for parts, from planning, quality engineering, sourcing & procurement, logistics, and very special reverse throughout all aftersales service process. ISSC has been actively innovating its business flow to ensure its visibility into upsell process. Lenovo’s expansive service supply chain, which encompasses more than 180 countries and features a global network of multi-tiered logistics systems, necessitates daily updates and the calculation of over two million part groups worldwide, with a greater number of Stock Keeping Unit (SKUs) as compared to conventional supply chains. Through the implementation of systematic solutions and AI application, ISSC has achieved seamless operations that are visual, sensible, and accelerated. This allows for expedited processing of premier support orders by assigning priority codes based on each function’s priority within ISSC:

Notably, standard orders typically have visibility of a single inventory, whereas premier orders receive an exclusive portion of inventory reserved solely for their use when planning. This strategic allocation of ISSC ensures parts priority, a crucial requirement for premier support. This grants premier orders unique treatment with prioritized parts replenishment and consumption; Upon reaching the warehouse, orders with a high priority are continuously expedited for processing; In terms of logistics, premier orders are granted a superior Service Level Agreement (SLA)-1 compared to the regular SLA-2 and SLA-3, such as upgrading Next Business Day to Same Business Day. The priority within logistics is ensured by several initiatives including applying the PP Flag to differentiate premier orders and tracking the Estimated Time of Arrival (ETA) through Smart Delivery system ISSC developed; Furthermore, at the Point of Use (POU), higher-priority orders are overseen by engineering front-end engineers to ensure fulfillment with a heightened level of priority in service delivery.

This effective service upsell strategy not only empowers the revenue of front-end sales team with systematic enhancement, but also improves customer loyalty and retention.