Topic: Li & Fung Supply Cycle Management and Operations
Li & Fung: Global Source Chain Administrator
From its inception in 1906, more than a century, especially considering that the 1980s, with economic the positive effect, Li & Fung's organization roles, it could be said with all the evolution from the global overall economy, has skilled a historical change from basic middlemen for the global supply chain managers.
After the mid-1990s, Li & Fung offers actually turn into a global source chain supervisor. Within the around the world, he increases the supply cycle of every buy from the Western and American customers, thereby creating a most cost-effective supply chain, to supply customers with cost-competitive companies earn optimum marginal income. Li & Fung вЂs services presented to buyers, in addition to product-centric responsible for the work, including market research, product design and development, raw materials procurement, range of supplier and production monitoring, but the series of importance and foreign trade regulatory measurement and strategies arrangements, and financing for potential suppliers of unprocessed trash, factories, low cost importers and retailers inside the supply chain who take up a key location, so that firms from the source side and demand side of the source chain are able to function optimally.
Coming from practical experience, Li & Fung summed in the following three aspects: (1) Supply chain includes all sorts of business which in turn starts through the customer demands, from item design through to the supply of raw materials, manufacturing, wholesale, retail and also other processes, during which maybe after shipping and warehousing, delivering the product to the final users. (2) Members in supply chain consist of corporate and departmental products within the enterprise. The supply chain is the interaction and relationships between these types of units. And enterprises ought to pay close collaboration inside the enterprise. (3) The supply cycle business processes and functions can be analyzed from four aspects: workflow, physical movement, information movement and money flow. Info flow influenced workflow, work flow determines physical flow, physical flow feedback funds stream. These reveal the knowledge of the supply chain from Li & Fung. In my declaration, Li & Fung's source chain supervision model, in least incorporate some of the subsequent basic features:
First, positively expand global sourcing circulation networks, improve product source chain supervision, and attain close cooperation of enterprises on source chain client to guard the " the gentle three us dollars in full price".
In an increasingly competitive international marketplace environment, Li & Fung attaches wonderful importance to " the soft 3 dollars in retail price": that is the full price of your commodity in the U. H. is $ 4, it is production expense is only dollar 1, which has been very difficult being further lowered, but one more $ a few is the value of all backlinks of the source chain, which include product design and style, raw materials procurement, logistics and travel, wholesale and retail, details and supervision, etc ., in this field there are many possibilities for corporations to save business profit. The wisdom of traditional marketplace is to examine just how these products well worth $ some sell more, with higher value. But the easiest way is to start from value-added $ 3 coming from supply cycle. As long as prices remain unrevised, with the earnings from the source chain, you may directly boost the economic earnings. This is just the economic idea of Fung brothers. Consequently , Li & Fung definitely expand global sourcing division network, through improving source chain management to make this " the gentle three us dollars in selling price".
In order to develop one of the most optimized supply chain intended for the customers in the whole community. Li & Fung connects great importance to close co-operation of the companies on each node of the source chain. Li & Fung, through it is extensive global sourcing network, maintain long term close...