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A passage from Microscope said that Lenovo is going to invent a new bid tool to to improve its efficiency of payback to its distributors’ and partners’ cash flow.
As we learnt in class 6, the significance of cash flow can always be put in the first three places in a supply chain. The crack of the cash flow of several small cooperations can leads to the failure of the entire industry. That even was the origin cause of financial crisis in 2008.
Generally speaking, you are never too efficient to do your business whereas you will never overemphasis the importance of the inventory and innovation. On this point, Lenovo spares no effort to drive greater visibility of a product’s journey in the supply chain to give partners more predictability, This provide confidence and clearness to all its partners and made the relation between them more stable.
A company with better visibility and more rapid paying back is always more credible. It will be hard for its stake to fluctuate dramatically and unpredictably. Most investors prefer such company with a long-term feast and stability.Maybe Lenovo is not the one who does best, it has always been struggling for.