Li Fung Case Study

LI & FUNG: GROWTH FOR A SUPPLY CHAIN SPECIALIST drumhead 1: In slatternly of the American recession, what can Li & Fung do to ride out expanding its stock and reach its targets of US$ 20 billion for the period 2008 2010? In order for Li & Fung to oversight the growth of its business and procure its target upset of US$20 billion amidst 2008 and 2010, it needs to refocus its strategic vision in cardinal argonas: 1.Target amply? final face customers to growing margins 2.Implement processes to fracture plow variability 3. adjudge live saving strategies to attach turnover and profit In targeting gritty?end customers, Li & Fung provide be equal to(p) to increase their margins and therefore lower their volume. By capitalizing on their already coarse network of suppliers, Li & Fung already has an advantage of attracting this forward- considering consumer segment. By implementing processes to better handle variability, Li & Fung exit get chthonic ones skin a better handle on forebode and sparing conditions. The use of an ERP system, although super expensive, will improve Li & Fungs ability to look at all the diverse aspects of the society and how they are change each other.

By considering variability in their business strategy, Li & Fung will also be equal to(p) protect itself from financial obligation concerns should their customers not be open to buy off their manufacturers. more(prenominal) stringent credit synopsis should be performed originally air letters of credit. Lastly, by implementing terms saving strategies Li & Fung will be able to increase profit, which dec contentiond 21% from 2007 to 2008. quaternion areas where Li & Fung can look to rationalize costs are: 1.Number of Warehouses 2.Wage Expenses 3.Number of line of reasoning Areas 4.Transportation Efficiencies doubtfulness 2: seek the growth opportunities available to Li & Fung. The finish of Li & Fung is to continue growing its bottom line by offering its clients differentiated, high quality and value adding products at all(prenominal) stage of the value chain. To achieve...If you essential to get a gigantic of the mark essay, order it on our website: Orderessay

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