Can Moto’s supply chain VP save struggling mobile biz?

Motorola Inc. is once again being brought down by its mobile devices business, late Wednesday announcing it has downgraded its sales estimates for Q2 largely because of lower overall unit volumes in the mobile devices business in Asia and Europe. In reaction, the company has appointed its executive VP of its integrated supply chain organization, Stu Reed, to president of the mobile device business.

Reed has a substantial task ahead of him. He now faces the challenge of pulling the mobile devices business back from the brink – presuming, of course, that it’s not too far gone to be rescued. The company said in its statement that it no longer expects the segment to be profitable for full-year 2007; industry giant and company CEO Ed Zander in April called the unit’s performance “unacceptable;” and Q2 marks the second time this year Motorola’s numbers are being hurt because of the business (Moto also downgraded Q1 estimates because of the mobile devices business).

Is Reed up to the challenge of recovering the business for Moto — a business that has served it well in many years passed and allows the company to claim the title of second-largest mobile phone vendor (behind Nokia)?  That remains to be seen. But one can clearly see why Moto placed him at the helm. Reed joined Moto in April 2005 as senior VP, chief supply chain officer; in February 2006, he was promoted to executive VP of integrated supply chain. Prior to that he spent 20 years at IBM, holding executive seats in Big Blue’s worldwide manufacturing and engineering; systems, storage and software products; and strategy, process and systems groups, according to his Forbes bio. He’s got “strategy” written all over him.

In his two years with Moto, the company credits him for transforming its supply chain organization, which encompasses the global operations associated with procurement, new product introduction, manufacturing and customer fulfillment, and helping the company generate significant cost savings by consolidating suppliers and implementing a comprehensive supply chain strategy.

Rita Lane, corporate VP and chief procurement officer for Motorola and also a former IBM exec, takes Reed’s place and will lead Motorola’s integrated supply chain organization.

What are your thoughts? Does Reed have what it takes?