Lenovo, the Chinese technology powerhouse, has appointed Service Parts Logistics (SPL), Africa’s largest parts management and supply firm, as their authorised distributor for out-of-warranty (trade) spare parts in 38 countries in the Middle East and Africa region, including South Africa, Egypt, UAE, Morocco and Saudi Arabia.
By authorising SPL as Lenovo’s sole authorised (trade) parts distributor (LAPD) for the region, and outsourcing this function, Lenovo expects to significantly improve service levels to customers.
SPL has a record in the industry of improving service levels and drastically lowering costs for brands like HP, Toshiba, Acer and Fujitsu.
By outsourcing these specialised business processes, Lenovo is able to plug straight into a world-class trade parts distribution structure, taking advantage of the specialised skills and tools, which SPL has developed over its 23 years of operations in the complex area of ICT service parts.
Lenovo’s global spare parts programme manager explains. “The fact that SPL is not just a logistics company, but a specialised service parts company makes a big difference. They take over the entire business process including stock ownership and profiling, which means that they also take ownership of and manage the myriad of debtors and customs interventions, which arise in a complex region.
“SPL’s track record in the industry, and their sophisticated parts optimisation systems were also important differentiators in making this decision.”
Simultaneously, Lenovo has been alleviated of the staff and expense burden associated with the complex micro-management environment of service parts planning, distribution management and reverse logistics, whilst further eliminating the costs associated with stock holding.
Lenovo has been in the press in recent months for its continuing rapid growth in emerging markets; they are number one PC supplier in China with over 35% market share, and sales growth that has consistently outstripped the worldwide PC market in unit shipments.
The business has gained market share across all geographies, products and customer segments, making it the fastest growing of the four major PC companies in the world for two years running, and the second largest overall.
SPL’s MD, Steve Cox, explains the business’s enthusiasm for working with Lenovo.
“We’re delighted to be involved with Lenovo – they are an great brand and we are proud to be associated with them. We know we can add a lot of value to their business, and help streamline their operations, letting them focus on growth and serving their customers. It’s a very exciting time to be in our industry.”
SPL will complete the rollout of Lenovo spare parts across all 38 countries by June 2012.