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.
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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 makes sure that everything runs smoothly and fit in with the current environmnet. In the article, there are many examples to show how successful of the supply chain management is in Li & Fung.
• In the product development stage, it uses a customized process for different customers in order to shorten the producing and delivery time.
• Li & Fung purchases the raw materials from the suppliers in different countries in order to ensure the quality and costs. By using the global sourcing network can provide Li & Fung on cost reducing and flexible options to customers.
• Li & Fung does not have its own plants but producing the products in multiple plants to reduce labor costs and delivery …show more content…
Supply chain management effectively helps the company to obtain more accurate information; and therefore, able to carry out a better sales forecasting for the company. Other benefits include building strong supplier and customer network, avoid shortage or surplus by balancing supply and demand, and improve traditional business strategy. Each of the organization has different levels of supply chain processes; thus, to understand, identify and implement in each stage is an important consideration to the company. Those variables including the type of product, firm’s size, market supply and demand will also affect the supply chain management and decision. Therefore, in order to have a better outcome and gain benefits for the business and bottom line from the supply chain model, we should first understand the market tendency and business discipline in today’s business world; and then apply the supply chain strategy into the
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 makes sure that everything runs smoothly and fit in with the current environmnet. In the article, there are many examples to show how successful of the supply chain management is in Li & Fung.
• In the product development stage, it uses a customized process for different customers in order to shorten the producing and delivery time.
• Li & Fung purchases the raw materials from the suppliers in different countries in order to ensure the quality and costs. By using the global sourcing network can provide Li & Fung on cost reducing and flexible options to customers.
• Li & Fung does not have its own plants but producing the products in multiple plants to reduce labor costs and delivery …show more content…
Supply chain management effectively helps the company to obtain more accurate information; and therefore, able to carry out a better sales forecasting for the company. Other benefits include building strong supplier and customer network, avoid shortage or surplus by balancing supply and demand, and improve traditional business strategy. Each of the organization has different levels of supply chain processes; thus, to understand, identify and implement in each stage is an important consideration to the company. Those variables including the type of product, firm’s size, market supply and demand will also affect the supply chain management and decision. Therefore, in order to have a better outcome and gain benefits for the business and bottom line from the supply chain model, we should first understand the market tendency and business discipline in today’s business world; and then apply the supply chain strategy into the