Li & Fung is a global supply chain management company founded in 1906 that sources and produces various consumer goods. It has evolved over time from a regional sourcing agent to developing a customized and rationalized global value chain. The company focuses on being customer-centric and outsourcing non-core activities while maintaining close relationships with business partners. It utilizes IT platforms to improve supply chain efficiency and shorten production timelines. Li & Fung's ability to efficiently coordinate a flexible global value chain through trust and technology sets it apart.

1. Li & Fung
Victor K. Fung
Group Chairman
William K. Fung
Group Managing Director

2. Presented by Parth Doshi – 11
 Bhumita Sarabhai- 46
 Harshil shah – 49
 Vatsal Shah – 55
 Hina Soni - 59

3. •
1906-1949
Founded by Mr Fung Pak-Liu and Mr Li To-Ming.
Traded products like silk, bamboo, handicrafts and fire works.
• 1949-1979
Starting exporting Labour Intensive Consumer Products.
• 1979-1985
Opening up in China and industrialization in less developed
Asian countries
Heavy investments made during this time.
• Since 1995
Evolution of Multinational Group.

4. Introduction
Supply Chain Management
 SCM includes all the activities that must take place to get the right
product into the right consumer’s hands in the right quantity and at the
right time.

5. Example
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Say we get an order from a European retailer to produce 10,000
garments.
For this customer we might decide to buy yarn from a Korean
producer but have it woven and dyed in Taiwan.
So we pick the yarn and ship it to Taiwan. The Japanese have the
best zippers, so we go to YKK, a big Japanese zipper manufacturer,.
We order the right zippers from their Chinese plants, the best place
to make the garments is Thailand. So we ship everything there.
The customer needs quick delivery, we may divide the order across
five factories in Thailand. Effectively, we are customizing the
value chain to best meet the customer’s needs.
(Interview of Victor Fung of Li & Fung in HBR, Sept-Oct 1998.)

6. Li & Fung Business Evolution
Stage 1
Stage 2
• Regional Sourcing Agent
• Customization
Stage 3
• Dissecting and Rationalizing
the Value Chain
Stage 3
Stage4
• Intergrated Supply Chain

7. Seven Pillars
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Customer Centric and Market Demand driven
Focus on one’s core competency and outsource non-core
activities
Close risk and profit sharing relationship with business
partners
Design, implement, evaluate and improve the several flows
IT to improve efficiency of the SC’s operation
Shorten Production lead time and delivery cycles
Lower costs in sourcing warehousing and transportation

8. Information Platform for Integrated
Solutions

9. Alignment between Business and IT
 Three main Business
 Intranet and Extranet links
 Tracking systems
 Centralised IT system
 E-commerce
 Clicks and Mortar pioneer

10. Global Value Chain

11. Sources of Li & Fung’s Distinctiveness
Efficiency and Flexibility
Trust
High Coordination of the dispersed value chain
Lower mark down for retailers
Investment in IT
Think like a big company act like a small one

12. THANK YOU!!