Li & Fung
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Title: Li & Fung

Essay Details:

Subject: Business
Author: Ruth L
Date: September 16, 2012
Level: University
Grade: A
Length: 6 / 1514

Essay text:

The research group says the key is that the "supply chain must be flexible, agile, cost-effective and responsive. Nowadays it is more common for companies to collaborate in a global context where each of them focuses on its core competency and outsource the rest." L&F has taken its core competency to the extreme by perfecting the science (and art) of outsourcing. The company follows the following principles to assure it stays at the leading edge of supply chain management theory and practice. ? Be customer-centric and market demand driven; ? Focus on one's core competency and outsource non-core activities, in order to develop a positioning in the supply chain; ? Develop a close, risk- and profit-sharing relationship with business partners; ? Design, implement, evaluate and continuously improve the work flow, physical flow, information flow and cash flow in the supply chain; ? Adopt information technology to optimize the operation of the supply chain; ? Shorten production lead time and delivery cycles; and ? Lower costs in sourcing, warehousing and transportation L&F believes that these core principles are key factors for success in managing a global supply chain...

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