William Amelio, president and chief executive officer of Lenovo Group, is losing patience with efforts to revamp the company\u2019s supply chain\u2014a critical part of the company\u2019s ongoing restructuring drive."It\u2019s still not where I\u2019d like it to be, and I\u2019m getting impatient," Amelio told analysts Thursday in a meeting that was broadcast over the Internet.\n\n\n\n\n\n\n\n\n\nLenovo CEO AmelioThe second quarter of Lenovo\u2019s fiscal year, which ended on Sept. 30, was a tough one. The company reported a 1 percent increase in revenue, to US$3.7 billion, and turned a profit attributable to shareholders of $38 million\u2014a drop of 17 percent from the same period last year."It\u2019s a tough, fiercely competitive market," Amelio said.While PC shipments soared in China, Lenovo saw shipments fall in Europe and the Americas, where pricing pressure was acute. "Our operations outside China are still a work in progress," Amelio said, adding that a transactional sales model that targets consumers and small businesses is being rolled out worldwide and should improve things."We\u2019re closing the gap, but it\u2019s going to take a few more quarters and a lot more work," Amelio said, noting that the company is particularly focused on improving its operations in the Americas during the current quarter.Part of the problem is Lenovo\u2019s supply chain, which was hobbled during the second quarter by inadequate IT systems and too much "complexity," he said.To remedy the situation, Lenovo has invested heavily in the rollout of an updated IT system based on software from SAP. That process is under way and will be completed by early 2008, Amelio said, declining to specify how much it will cost. "Suffice it to say, it\u2019s a sizable investment," he said.Lenovo is also cutting down on the number of models it sells and is changing the design process to reduce its reliance on components that come from a single supplier, he said.Once these changes and the rollout of the new IT system are completed, Lenovo\u2019s performance will show significant improvement, Amelio said. "We will be a PC powerhouse like no other," he said.-Sumner Lemon, IDG News Service (Singapore Bureau)Related Links:\n\nLenovo CEO: The Action Is in Emerging Markets\n\nLenovo Sees Slimmer Profit as Sales RiseCheck out our CIO News Alerts and Tech Informer pages for more updated news coverage.