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Li & fung ltd
- 1. An assignment On LI & FUNG LTD Course Title: International Business Course no: BA – 3217 Submitted to MEHEDI HMH RAHMAN PROFESSOR Submitted by PRIYANKA HUI CHOWDHURY ID#120316 Business Administration Discipline Khulna University, Khulna 09 November, 2015
- 2. 2 Li & Fung Ltd, A Global Supply Chain Company’s Business Aspects Li & Fung Ltd Li & Fung Ltd is a global supply chain Company that started operation in 1906 at Guangzhou, China. It is public company limited. Fung Pak-liu & Li To-ming are the founders of the Li & Fung Ltd. The company consider themselves as the global supply chain managers. Li & Fung Logistics is one of the largest supply chain partnering companies in Asia. They provide sourcing services of multiple product lines to retailers and brands across the globe. Li & Fung designs customized supply chain solutions for the world’s most successful retailers and brands. They have operations & networks in Greater China,Japan, Korea, the Middle East and the Indian subcontinent. They have a strong network of 15000 suppliers in more than 40 countries & 26000 employees working world widely. Company Overviews, at a glance Industry Supply Chain Management Founded 1906 Founders Fung Pak-liu, Li To-ming Location China Head quarters Hong Kong Products Apparel, household goods, furnishing goods, toy, health & beauty products Employees 26000 around Operational areas 40 markets History of Li & Fung Ltd. As early mentioned Li & Fung Limited started working since 1906. The company has an operational history of more than 100 years. The company started from a simple exporter to an expert in "global supply chain management." The company was the first Chinese-owned exporter in a field controlled by foreign merchants. Fung Pak-liu acted as an intermediary between Chinese-speaking factory workers, employees and English-speaking buyers. In the first few years, Li & Fung dealt primarily in porcelain and silk, and later moved into bamboo and rattan ware, jade, ivory, handicrafts, and fireworks. Then Fung Pak-liu's son Fung Hon-chu went to Hong Kong and established a branch to handle the shipping of goods. In 1937, Li & Fung was formally established as a limited company in Hong Kong. After World War II, Fung Pak-liu died in 1943 and control of the firm moved to Fung Hon-chu. The silent partner Li To-ming, sold his shares to the Fung family in 1946. The company dealt in garments, toys, electronics, plastic flowers, and wigs. Its primary customers were retailers in the United States. As Hong Kong's manufacturing economy grew, Li & Fung grew with it. After few years, Fung Hon-chu's sons Victor and William joined & carried the business ahead. The Fung brothers brought a new perspective on the company's future but they faced a difficult environment for making drastic changes. William and Victor's first initiative was to convince their father to take the firm public. In 1973 Li & Fung was listed on the Hong Kong Stock Exchange. As the roles of ownership and management were separated, it was easier to make changes at the firm. The brothers established offices in Taiwan, Korea, and Singapore in order to diversify their manufacturing sources. With the passage of time, Li & Fung developed a buying network throughout the region. The company also branched out into the area of retail in the mid-1980s. Moreover, Li & Fung established a venture capital enterprise in the United States in 1984. A the beginning of the 1990s, Li & Fung was well established with 900 suppliers in the East Asia region in countries that included Indonesia, Singapore, South Korea, Taiwan,
- 3. 3 Thailand, and China. The company enhance the network of offices in India, Pakistan, Bangladesh, and Sri Lanka in late 1990s. The company's 65 sourcing offices in 38 countries give it the global connections it needs to pull off the “borderless" manufacturing process. It had shown the flexibility to continue playing a key role in the global market of the 21st century. The company coordinates product design, raw material and factory sourcing, production management, and quality assurance for clients. They have some renewed clients like The Limited, The Gap, Coca-Cola, and Kohl's Corporation. Although Li & Fung mainly dealt with garments, with the increasing demands the company expended the product lines like promotional items, toys, sporting goods, and housewares. Entrepreneurial Aspects of Li & Fung Ltd The company is a border example of entrepreneurial activities in the field of supply chain management industry. The entrepreneurial aspects of Li & Fung are given below. The following elements will discuss the core entrepreneurial aspects of Li & Fung Ltd. Innovator Li & Fung, Hong Kong's largest export trading company that introduced supply chain management as a topic of increasing importance. They developed the philosophy of supply chain management. It also allowed customers to buy "closer to the market." The company run it’s activates in innovative ways through including global brands, department stores, hypermarkets, specialty stores, catalogue-led companies, and ecommerce site to reach the targeted groups. Value addition It performs the higher-value-added tasks such as design and quality control in Hong Kong, and outsources the lower-value-added tasks to the best possible locations around the world. It operates as a global multi- channel sourcing platform enabling to create tailored sourcing options to meet customers' specific requirements. From product design and raw material sourcing to production management and quality control, the company collaborate with customers, and assist them to produce the finished products that their customers demand. Identifying & serving Consumers’ needs The company create & sell an array of consumer goods across a wide range of product categories. These include everything from designer wear to home decor and furnishings, children's clothing, handbags and accessories, toys, sporting goods and footwear, as well as health and beauty products. They constantly strive to address each customer’s specific needs in the areas of design, sales and marketing, and distribution & sensibly managing the entire supply chain end to end. They have product specialist’s who focus on each customer segment, leveraging their close ties with suppliers to offer inside knowledge that helps customers make informed buying decisions. Reliability The company is not just about moving things from one place to another. They analyze each customer’s needs, anticipate challenges, design options and set up contingency plans. They ensures the safety, quality and cost effectiveness of their products. They also develop business continuity and disaster recovery plans to manage anticipated risks.
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