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BYANSH AGGARWAL
SUDARSHAN SAHU
 Major Player in GarmentTradingWorldwide.
 Established in Gaungzhou in Southern China in 1906.(silk &
porcelain main bus...
 Reformation done in 3 phases :
 Phase1-1970: transformation into regional sourcing
company.
 Phase 2 -1980:Transformat...
 Incshape Buying Services.
 Karstadtquelle AG
 Silvereed Group;Wilson& WongTrading Co. Ltd.
 Imagine and CGroup.
 Li ...
 Exhibit 1: decline in EPS from 11.5 to 8.9 US
cents in and also decline in DPS from 9.2 to
7.3 US cents in 2008.
 Exhib...
In the year 2009, US went through an economic
crisis.
 What could LI & Fung do to safeguard the
growth of its Business ?
...
 Balance trading; less US concentrated.
 Leveraging its supplier relationship into
performing sound trade overseas.
 Av...
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Li & fung supply chain specialst case study

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This Case study will give new ideas on how Supply chain Specialist Li & Fung in Southern China in1906. It has expanded in US and other Countries and want to know how it can retain its interests in US?

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Li & fung supply chain specialst case study

  1. 1. BYANSH AGGARWAL SUDARSHAN SAHU
  2. 2.  Major Player in GarmentTradingWorldwide.  Established in Gaungzhou in Southern China in 1906.(silk & porcelain main business)  In 2000’s diversified into : health, beauty & cosmetics.  Had 80 buying offices in 40 different Countries by 2008.  Acquisitions based on incentives based policy.  Has a Customer- centric organizational structure.  Each team handled business worth US $ 20- 50 million.  Its structure & incentive system enabled it to grow in size without being Bureaucratic.  2007: total turnover-US $11.854 billion.  Contribution : US – 65% & Europe 26%.
  3. 3.  Reformation done in 3 phases :  Phase1-1970: transformation into regional sourcing company.  Phase 2 -1980:Transformation into more customer centric programs.  Phase 3-1990: transformation into Dispersed Manufacturing.  In 2008, largest exporter of Garments fromTurkey.
  4. 4.  Incshape Buying Services.  Karstadtquelle AG  Silvereed Group;Wilson& WongTrading Co. Ltd.  Imagine and CGroup.  Li & Fung USA focus on: ONSHORE BUSINESS  Proprietary brands  Private labels  Licensed brands  Yielded higher profit margins.  US $100 million reserves for new acquisitions in Europe.
  5. 5.  Exhibit 1: decline in EPS from 11.5 to 8.9 US cents in and also decline in DPS from 9.2 to 7.3 US cents in 2008.  Exhibit 3:ValueAddedActivities. SUPPLYCHAIN VALUE ADDED ACTIVITIES DESIGN INFORMATION MATERIAL SOURCING EXTENSIVE NETWORK MANUFACTURING TESTING SUPPORT SHIPPING CONSOLIDATIONOF GOODS
  6. 6. In the year 2009, US went through an economic crisis.  What could LI & Fung do to safeguard the growth of its Business ?  How could it achieve its target turnover of US$ 20 billion b/w 2008-2010.
  7. 7.  Balance trading; less US concentrated.  Leveraging its supplier relationship into performing sound trade overseas.  Avoid cases like KB toys.  Sticking to diversification; health, beauty and cosmetics.

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