Essay on Li & Fung Integrated The Value Added Service

804 Words Oct 14th, 2016 4 Pages
Li & Fung integrated the value-added service in the entire production process by the extension of the supply-chain model. The value-added package model is created to facilitate the efficient, reduce inventory costs and customize the production procedures. Also, Li & Fung combined the traditional corporate culture with the entrepreneurial innovation which benefited the company to growth and maintained the position in the market. A supply chain management is implemented in all aspects of distribution and manufactures for the business; which perform the functions in procurement of materials in foreign countries for the customers, transfer the materials into finished products and finally deliver the products to the customers. In order to shorten the production cycles, Li & Fung implemented the supply chain to its customers. In the beginning of the whole production procedures, the company organized production to ensure that small- scale production runs smoothly, it could help to curtail the response time for customers and so they can have the up-to-date products to chase the market needs and trends. To simplify the concept, there are five stages to summarize the supply chain process. They are planning, developing, producing, delivery and after-sales service. In Li & Fung, the supply chain activities are the most important backbone in the company since it tightly connects to the operation, strategies as well as suppliers and customers to…

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