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00:00My colleagues Alix Steel and Guy Johnson caught up with Vladimir Rosen of it. Lenovo is president of North America. As part of that yes they asked about how that company is navigating new product launches with the supply chain crunch. What we're seeing is things like you know shipping by freight is about 5 x higher this year than it was last year to X higher on air freight costs. So we're starting to do things like making sure the boxes are smaller lighter weight making sure that we're you know to some of our large customers. We're actually shipping in multi pack boxes to to reduce that that footprint in that weight and especially the space that it takes to ship some of these devices in. So that is absolutely something that we're looking at now. It's true. You know one of the things that that you do do is in order to make sure you're innovating. We spent over two billion dollars in R and D to make sure that we are innovating products that customers want. And one of the things we're hearing from customers is they want a more sustainable product for their corporations for their enterprises and even for their home use and small businesses. Well let's talk about home use. What are you saying in terms of the trends in terms of usage right now politically for those corporate products. A lot of people watching this are going to be sitting at home. That's still going to be working from home as a result of Omicron. That's still going to be using virtual meetings. That's still going to use Zoom. They're still going to be using teams. How does this new product fit into that landscape and how does it involve with that landscape. There's a lot of conversations around what is going to be happening with matter particularly in the corporate landscape. How is this new product going to fit into that landscape. Yeah guys. So there's a couple of things we've done. Number one is with this particular Zite series notebook we worked with a M.D. as a partner to make sure we're developing a product through their CPA that delivers the highest and most realistic audio qualities you know for teams usage for zoom usage and really to create a an environment where you're a hybrid. Lee there you know we've seen we've seen the dynamics change over the last 18 months two years you know work for you know work remote is now turning into hybrid work. You know it's it's an area of the market where you know the more you could actually create a better virtual experience for employees or consumers. That's really some of the trends that are driving the industry today a lot. What is it like to get your hands on chips and stuff like how are you dealing with the shortages that everyone's kind of having to deal with right now. I know you mentioned sort of making packaging lighter so you have a lower footprint and that helps. What about chips. Yeah Alex obviously you know we've seen supply chain issues now for well over a year but being the number one P.C. manufacturer in the world that actually gives us a lot of clout. We made massive investments when it came to buying products early whether it was chips memory drives panels. Those were all things that we made early investments on. And it's one of the things that I think has kept Lenovo up front as the number one P.C. manufacturer. The other thing we've done is we've leveraged all of our worldwide manufacturing locations. So operating in over 180 global markets and manufacturing it in in about 10 different countries has allowed us to actually spread out some of those areas where we could actually procure and build product closer to the customer that actually reduces some of that shipping time that we're talking about.

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Lenovo Changes Shipping Strategy to Lower Costs

Lenovo North America President Vladimir Rozanovich talks about supply chain issues with Bloomberg's Guy Johnson Alix Steel. (Source: Bloomberg)

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