Intel and Lenovo CEOs on tackling supply issues

Intel says its on-time delivery rate is at over 90 per cent

CEOs from Intel and Lenovo have penned messages to partners and customers revealing how the two vendors are working to reduce supply chain constraints.

The supply of hardware has been hammered globally after the closure of factories in China was extended beyond the new year because of COVID-19, as companies scramble to set up their employees for home working.

Lenovo CEO Yuanqing Yang said the vendor moved production outside China to other areas to keep the flow of devices running when the country was crippled by the coronavirus.

"Over the last two months I have been amazed at the dedication our teams have shown to keeping our partners and customers informed and ensuring our operations are running as smoothly as possible," he said.

"While I'm amazed, I'm not surprised, because I've seen our teams pull together and deliver for our customers in many difficult situations. When our factories in China were closed for a number of weeks, our supply chain team rallied to look at how we could use our global footprint of 30-plus manufacturing sites to adjust capacity and rebalance production.

"Although the China factory closures caused a short-term impact on production and supply, we were able to minimise this as much as possible. As demand ramps up for homeworking technology and solutions, I'm seeing teams be creative about how they can quickly support customers around the world who are changing their work practices and prioritising customers that are at the front line of dealing with the coronavirus situation."

Yang called the global pandemic an "unprecedented challenge" and said that Lenovo is prioritising customers that are on the "front line of dealing with the coronavirus situation".

Meanwhile, Intel CEO Bob Swan said that his firm is sustaining an on-time delivery rate of 90 per cent despite the disruption.

He added that Intel factories are operating "on a relatively normal basis".

"We recognise that the role our industry plays in the world is more essential now than it has ever been," Swan said.

"I am equally inspired by the deep commitment of our teams to sustain our manufacturing, assembly, test and supply chain operations in Oregon, New Mexico, California and Arizona, as well as Israel, Ireland, China, Malaysia, Vietnam and other Intel and partner locations around the world.

"As you and your teams navigate the next few months, there will be challenges. I ask that you please reach out to me and my team if there is anything we can do to help you fulfil your mission or to help others who need it in the crisis."