Analysis of Li Fung
Logistics and transportation
Mei Jin
2011954440
ECOM-ICOM
Analysis of Li & Fung Case
Logistics and transportation
Name: Mei Jin
Student No. 2011954440
1
Logistics and transportation
Mei Jin
2011954440
ECOM-ICOM
Analysis of Li & Fung Case
Background
Founded in 1906 in Guangzhou by Victor Fung 's grandfather, Li & Fung was the first
Chinese-owned export trading company in China at that time. From the traditional export trade companies to large modern multinational supply chain Management
Corporation; this 106-year old company witnessed the transformation of the supply chain management. Export trade, distribution and retail are Li & Fung’s three core businesses. Li & Fung Focus on the needs of customers, and provides effective product supply, in order to supply appropriate consumer products in right time and price to all customers.
1 Strategic evolution in the new age of global competition
From the traditional export trade companies to the large modern multinational supply chain Management Corporation, Li & Fung has experienced four stages: purchasing agency, borderless manufacturing, virtual Manufacturing, supply Chain Management.
1.1 Purchasing agency （1906-1975）
The founder of Li & Fung relied on his spoken English, built relationship between factories and merchants from China to America. They continued providing “value added” to customers:
(1) Provide the latest information of market to the buyers
(2) Evaluate each manufacturer, and provide the appropriate manufacturers or suppliers to the buyers
(3) On the behalf of buyers to purchase products
(4) Assist factory to produce and monitor factory, ensure the production process conform to the standard
As a middle man in factories (suppliers) and buyers, Li & Fung set up a long-term partnership between them and achieved a win-win situation in that time.
1.2 Borderless manufacturing （1976-1994）
In borderless manufacturing, Li & Fung were responsible for
Mei Jin
2011954440
ECOM-ICOM
Analysis of Li & Fung Case
Logistics and transportation
Name: Mei Jin
Student No. 2011954440
1
Logistics and transportation
Mei Jin
2011954440
ECOM-ICOM
Analysis of Li & Fung Case
Background
Founded in 1906 in Guangzhou by Victor Fung 's grandfather, Li & Fung was the first
Chinese-owned export trading company in China at that time. From the traditional export trade companies to large modern multinational supply chain Management
Corporation; this 106-year old company witnessed the transformation of the supply chain management. Export trade, distribution and retail are Li & Fung’s three core businesses. Li & Fung Focus on the needs of customers, and provides effective product supply, in order to supply appropriate consumer products in right time and price to all customers.
1 Strategic evolution in the new age of global competition
From the traditional export trade companies to the large modern multinational supply chain Management Corporation, Li & Fung has experienced four stages: purchasing agency, borderless manufacturing, virtual Manufacturing, supply Chain Management.
1.1 Purchasing agency （1906-1975）
The founder of Li & Fung relied on his spoken English, built relationship between factories and merchants from China to America. They continued providing “value added” to customers:
(1) Provide the latest information of market to the buyers
(2) Evaluate each manufacturer, and provide the appropriate manufacturers or suppliers to the buyers
(3) On the behalf of buyers to purchase products
(4) Assist factory to produce and monitor factory, ensure the production process conform to the standard
As a middle man in factories (suppliers) and buyers, Li & Fung set up a long-term partnership between them and achieved a win-win situation in that time.
1.2 Borderless manufacturing （1976-1994）
In borderless manufacturing, Li & Fung were responsible for
References: [5] Lee, H. L. "The Triple-A Supply Chain." HARVARD BUSINESS REVIEW 82.10 (2004): 02-13. [6] Martinsons, Maris G. "Electronic Commerce in China: Emerging Success Stories." Information & Management 39.7 (2002): 571-79. (2005): 252 - 63.