Inside Lenovo’s push to modernise its global supply chain with AI

• Lenovo’s long-term data and AI focus made its supply chain flexible and scalable.
• Lenovo built sustainability into daily operations and scaled it globally.

Global supply chains are under growing pressure to adapt. AI is reshaping decision-making, climate goals are forcing new operational standards, and shifting trade dynamics are prompting companies to rethink where and how they manufacture. Some firms are responding on the fly. Others, like Lenovo, have spent years laying the groundwork for these shifts.

The company recently topped Gartner’s Asia/Pacific Supply Chain Top 10 for 2025 for the fourth year in a row. The ranking reflects a long-term strategy built on scale, data systems, and circular innovation rather than short-term fixes.

Building a truly global supply chain

Operating in 180 markets brings obvious challenges. Lenovo runs more than 30 manufacturing sites worldwide, a mix of its own facilities and original design manufacturers. Few companies in the industry manage such a broad footprint.

Tu said this global reach is essential. “We are a global company with a well-balanced business across geographies, countries, and segments. To support customers worldwide, our supply chain must also operate globally,” he explained.

The harder part lies beyond the factory floor. “The real complexity lies in the end-to-end supply chain network — the systems, upstream supply, distributor relationships, and supplier coordination. Customer-centricity is in Lenovo’s DNA, so our factories operate globally and our systems are aligned to minimise inventory and reduce risk wherever possible. The strength of our global supply chain comes from this long-standing, customer-first approach. It has always been one of Lenovo’s key advantages,” Tu said.

This network design has helped the company maintain stability while continuing to expand.

Expanding while staying efficient

One of Lenovo’s newest expansions is in Saudi Arabia, where a large manufacturing facility will produce servers, PCs, and mobile phones in a single location — a first for the company. The new site is part of Lenovo’s strategy to improve regional agility, especially in the Middle East and Africa.

“As you noted, adding more manufacturing sites increases both capacity and complexity. Without the right systems, the risks — particularly around excess and obsolete inventory — can rise quickly. That is why we have invested in AI capabilities for many years,” Tu said.

Lenovo’s AI integration started well before the current generative AI boom. Traditional AI systems were already embedded in the company’s Supply Chain Intelligence platform, which connects supplier data, customer signals, and demand planning across regions. About two years ago, Lenovo began adopting generative AI and has since deployed its first supply chain agent. This has improved visibility and control over its vast network.

The impact is measurable. Even during recent industry fluctuations, Lenovo managed to grow while keeping inventory lean and write-offs low, improving service levels without adding financial strain.

AI with guardrails

AI now plays a central role in Lenovo’s supply chain, but the company hasn’t replaced human oversight with algorithms. Instead, it has built a layered approach that balances autonomy with accountability.

“I think our AI strategy has evolved through several stages. Right now, we’re at an optimal stage where we’re using agentic AI with autonomous support, but we still maintain necessary human oversight whenever needed,” Tu explained.

He also leads Lenovo’s broader digital transformation efforts, which means AI is applied across multiple business areas, not just logistics. To manage this effectively, Lenovo involves senior leaders in security, technology, and information to ensure the right architecture, governance, and risk controls are in place.

The company’s AI journey began about seven to eight years ago, using big data and traditional machine learning. Two years ago, it shifted toward agentic AI, building on this foundation. “Because of this long history, we understand clearly where human intervention is needed, and we step in at those points,” Tu said.

Multiple monitoring systems are now in place to check AI outputs and prevent errors from affecting operations. These checkpoints cover manufacturing, quality control, and supply chain coordination, helping maintain trust in AI-supported decisions.

Closing the loop with circular innovation

Sustainability is another pillar of Lenovo’s supply chain strategy. The company has integrated recycled materials into nearly 300 product lines and uses sustainable packaging made from sugar cane and bamboo. But circularity isn’t limited to materials; it’s designed into every step of the supply chain.

Tu described Lenovo’s approach as end-to-end. “We build circularity in from the very beginning: starting with product design, selecting sustainable materials, reducing the carbon footprint during manufacturing, selling through our channels, and then taking back and refurbishing products for resale through SSG,” he said, referring to Lenovo’s Solutions and Services Group.

Lenovo uses its Intelligent Sustainability Solutions Advisor (LISSA) to calculate the carbon footprint of each PC it produces. This information is shared with enterprise customers through a scorecard that helps them choose lower-impact products. This capability was developed internally.

Tu doesn’t see major barriers to scaling these efforts. Many customers in the US and EMEA have already embraced ESG principles. The key now is accelerating progress. “The real challenge is ensuring that this business continues to grow while still meeting our mission to reduce our global carbon footprint,” he said.

Lessons from APAC leaders

Lenovo’s experience offers practical insights for companies navigating supply chain changes in Asia-Pacific. Scale plays a role, but customer focus shapes how that scale is used.

“Lenovo is unique in that we always put the customer at the centre. From that foundation, we’ve built a supply chain designed to support customers everywhere,” Tu said.

The company’s “Lenovo powered by Lenovo” approach acts like a flywheel. Internal capabilities strengthen customer support, which creates openings for new solutions, driving further improvement. Tu believes other companies—whether large global players or domestic firms—can follow a similar path by focusing on their strengths and turning those into solutions that can scale.

Why some AI efforts succeed — and others don’t

Many companies are experimenting with AI in their supply chains, but few have managed to move from pilot projects to real-world deployments. Tu outlined three factors that make the difference.

First is knowledge and data. “It’s not just data volume but structured, retained knowledge. If knowledge walks out the door with people, AI won’t succeed,” he said.

Second is organisation and governance, including security, alignment across stakeholders, and clear ownership. Lenovo’s CIO and CTO play key roles here.

Third is infrastructure. Even good AI use cases will fail without the right platforms to support them.

Lenovo’s success is rooted in its long history of using big data and its control over the entire supply chain. During COVID-19, for example, when many companies struggled with shortages, Lenovo grew its market share and revenue while keeping inventory low. Its deep visibility into both tier-one and tier-two suppliers allowed it to spot bottlenecks and adapt quickly.

Scaling circular practices across industries

Circular innovation is gaining momentum across industries. Lenovo is expanding its take-back and refurbishment programs through Asset Recovery Services, which now operates in 43 markets and handles about one million devices each year. The company plans to grow that to roughly 50 markets.

Scaling these efforts depends on reliable logistics, secure data wiping for refurbished devices, and compliance with local regulations—all supported by AI and integrated systems. By treating sustainability as part of everyday operations, Lenovo aims to make circularity easier to implement at scale.

A long-term play, not a quick pivot

Lenovo’s supply chain strategy wasn’t built overnight. Early investments in data systems, AI, and sustainable practices created a base the company could build on as conditions changed. Its scale helps, but so does pairing technology with human judgment and long-term planning.

For other companies in the region, Lenovo’s experience offers clear takeaways: build strong foundations early, set clear governance, and integrate sustainability into regular operations. These principles are becoming increasingly relevant as AI, environmental targets, and geopolitical shifts continue to reshape global supply networks.

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