Li Fung Pdf Reference

Ecosystem Aware
INTEGRATED
SUPPLYChain
CHAIN Management
NETWORKS
Global Supply

Li & Fung Ltd.
N. Viswanadham
[e-mail]
Source: Harvard Cases, Book by Jerry Wind et.al

Ecosystem Aware
Global Supply Chain Management

Contents l l l l l Li & Fung
Competencies of Li & Fung
The Service Chain Process @ Li & Fung
Price Target
Ecosystem Model
– Resources
– Service Delivery Mechanisms
– Institutions

l l l

Performance
Governance
Conclusions

N.Viswanadham

Ecosystem Aware
Global Supply Chain Management

Li & Fung

N.Viswanadham

Ecosystem Aware
Global Supply Chain Management

Li & Fung l l

B2B trading service provider
Who are its customers?
– Large retailers and manufacturers of labor-intensive, low-cost

consumer goods. Majority of them hail from the US and Europe
– Small retailers and manufacturers who lack the volume l Competitors
– Customers' staff could perform the same functions as Li & Fung

in searching out, inspecting, analyzing, and selecting factories for each order, and then making inspection visits to track the supplier's progress on the order.
– B2B companies need to prove that they can do better than the customer’s employees. Thus competition comes from l l

l

l

Large companies with international supplier networks like Li & Fung
Small outfits that have a good knowledge of suppliers in a small region or small product area
Large customers who have the capital to invest and operate their own buying offices

Threats: Disintermediation via New technologies
N.Viswanadham

Ecosystem Aware
Global Supply Chain Management

Li & Fung Business Model l Li

& Fung makes no products of its own. Rather, it
“orchestrates” the production of goods by others.
– It draws on a vast global network of highly focused providers

to arrange for private-label manufacturing, primarily on behalf of US and European clothiers. l For

a specific product or client, Li & Fung assembles a customized set of specialized providers