Li & Fung (a): Internet Issues

Topics: Supply chain management, Electronic commerce, Electronic business Pages: 4 (750 words) Published: February 23, 2011
Li & Fung (A): Internet Issues
Case written-up

Written Highlight:
Six years after the case firstly published, the business environment has been stepped into the ear of E-commerce by passing through the stages of software and hardware development. The key question in my written-up is how a century-old family owned company integrates with the new-economy idea to become E-commerce oriented/supported company.

The “E” in the E-commerce is representing the electronic infrastructure supporting commerce activities. In this case, it is the internet issues. The “Commerce” is presenting the offline business by Li & Fung. In order to integrate both into business activities, simply do the business in an electronic way. Is that work? I believe the answer is more than that. See my formula below: E-commerce ≠ Electronic + Commerce

E-commerce = Electronic × Commerce
Li & Fung’ s SCM
The core elements of Li & Fung’s holistic SCM including product design, coordination, sourcing, production, warehousing, distribution and market information which provides value-added service across the entire supply chain in a so-called borderless manufacturing environment. One of its strength is able to benefit clients by shorten order fulfillment from 3 months to 5 weeks.

Li & Fung does not own any of the components in the supply chain but manage and orchestrate the production process. Its holistic conception of the value chain is to improve operations by controlling owning strategic links in the chain through raw material sourcing. The E from E-commerce--- internet issues

With intranet to link the group’s office, manufacturing sites around the world, and with extranet to link the company directly to key customers, Li & Fung is building blocks to e-commerce solution. The key driver is E-commerce--- the new economy idea

“Internet is just another technology that affects the way information is transferred and people communicated with each other…”...
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