Operation Management-II

Report on Li & Fung Ltd- Business, Operations and Learning.

Li & Fung Ltd- Business, Operations and Learning.

Business Overview Opeates as a global supply chain manager, Li & Fung is committed to achieving the highest standards of service and meeting the needs of international businesses through competitive pricing, quality, and reliable delivery. Capacity and flexibility to respond rapidly to evolving consumer trends Catering global networks, having market knowledge, and advanced technology and information systems. Cover the entire supply chain through three distinct yet interconnected business networks: trading, logistics and distribution. o Trading: Find quality-conscious, cost-effective manufacturers to match the production needs around the world. Level of Operations :Over 15,000 suppliers in more than 40 economies Sourcing business covers a wide range of consumer products, from softgoods (garments and apparel) to hardgoods (non-apparel products such as toys, home furnishings, sporting goods, footwear, and health and beauty products). o Logistics: Operates an extensive logistics network around the world. Provides warehousing, transport, repacking, customs brokerage, freight forwarding, hubbing and consolidation, and other value added services, including supply chain analytics and value engineering work. Their end-to-end solution spans the time the product leaves the factory to the time it reaches the final consumer. Partner with local, international and multinational brand owners and retailers to optimize the flow of inventory and information to reduce cost and improve service level.

 Responds to constant change in the market. Competitive advantage by the people itself. Work closely with our internal and external customers to anticipate their needs. Providing the customers with peace of mind. o Distribution: Working closely with brands and retailers, Li & Fung addresses their specific needs in the areas of design, sales and marketing, and distribution as well as managing the supply chain. Distribution operation consists of three pillars: Private labels, Proprietary brands and Licensing of recognized brands. Deals in private label or in-house brand. To develop proprietary brands, the Company takes nationally recognized brands and builds exclusive lines of merchandise for retailers. For licensing, Li & Fung works closely with customers to build up well-known brands through product design, branding, sourcing, product delivery, quality control, pricing and warehousing. Success achieved in the U.S. and Europe, distribution business in Asia begins in 2011 Approach and Orientation of the Company and learning: o Guided by an entrepreneurial approach o Deep knowledge of international consumer markets and trends manages a business portfolio. o A strong and talented team that has been instrumental in its continuous growth and success.

End to End Supply Chain Downstream of the company which is supplier side

Trading network and manufacturing network

Product development, vender compliance, raw material sourcing, factory sourcing , manufacturing control, shipping control, forwarder consolidation, customer clearance, local forwarding consolidation

Upstream of the company which is customer side

Logistic network and distribution network Customer needs Consumer Retails Wholesales Product design