1. What are Li & Fung’s core strengths?
A. The ultimate middleman
Li & Fung’s company as a middleman provided a wide array of services that spanned the whole supply chain. In addition, they supplied both hard goods and soft goods from suppliers to in different countries and territories. Acted as the middleman, the company could reduce matching and credit risks. B. Information technology
Li &Fung invested in information technology that helped them to better manage the supply chain and get closer to the customer. And the centralized back-office systems contributed to improve the efficiency of acquisition. C. Holistic supply chain management strategy
This strategy could reduce the order fulfillment from months to weeks and the inventory that clients hold.
2. How do these core strengths make Li & Fung an attractive option for its customers? To attract customer, Li & Fung effective use of supply chain management to improve the competitiveness of enterprises.
Li & Fung provide customers with effective supply of products to achieve for consumers around the world to provide appropriate, timely, or the price of the product target. They also made use of supply chain management and effective cost savings. Through shared equipment, reduce inventory and other means to reduce the assets of the enterprises of the occupier. Utilize fewer resources to do more business, and will generate substantial returns. Middleman role make Li & Fung connected the networks, knowledge, staff and information.
They use the most advanced supply chain management to management practices, the use of delay in manufacturing full use of their network and strategic partnerships to require manufacturers to reserve production capacity in order to achieve the goal. Li & Fung's supply chain management emphasizes the customer-oriented, it divided into large customers and small and medium-sized customers, large customers, a dedicated department responsible for...
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