Superior SCM at Li & Fung Ltd.
The goal of effective supply chain management is to “gain competitive advantage through optimizing flows within the enterprise”. The Hong Kong listed company, Li & Fung Ltd. represents one of the world’s best examples of achieving this goal. The company financial history clearly tells that story. Just last year, L&F saw profit attributable to shareholder increase by 23%. In fact, over the past 14 years, L&F has seen steady compound annual growth rate of 22%. Not bad performance for a small family company that started in Guangzhou in 1906 trading silk and porcelain. In 1937, L&F moved its headquarters to one of the world’s most efficient seaports, Hong Kong, a move that would have a critical impact on their supply chain management. The L&F Group now has three main business groups in trading, retailing, and distribution. Garments make up the major portion of L&F business also including fashion accessories, furnishings, gifts, handicrafts, home products, promotional merchandise, toys, sporting goods and travel goods.
L&F is a leading company in supply chain management. Its success over the past two decades has made it one of the premier knowledge centers of research and experience optimizing a company supply chain. Several case studies have been done on the company touting it as an ideal business education example of supply chain management success. L&F continues to augment its supply chain knowledge through an in-house Research Center that scientifically analyzes how to optimize supply processes even further. They are developing models that keep L&F on a continued trend of industry leadership. L&F also partnered with the Chinese University of Hong Kong to share some of its knowledge with the world via the Li and Fung Center for Supply Chain Management where they publish journals, give presentations, and offer consulting services.
So what gives L&F their advantage in supply chain management? (more…)
