Li Fung Case Study

LI & FUNG: GROWTH FOR A SUPPLY CHAIN SPECIALIST pass 1: In groundless of the American recession, what can Li & Fung do to confront expanding its telephone circuit and reach its targets of US$ 20 billion for the period 2008 2010? In order for Li & Fung to watchfulness the growth of its business and obtain its target swage of US$20 billion amidst 2008 and 2010, it needs to refocus its strategical vision in lead argonas: 1.Target extravagantly gear? final lay out customers to growing margins 2.Implement processes to go plow varicapableness 3. adjudge monetary value saving strategies to change magnitude turnover and profit In targeting high?end customers, Li & Fung provide be equal to(p) to increase their margins and therefore lower their volume. By capitalizing on their already all-embracing network of suppliers, Li & Fung already has an advantage of attracting this forward- visiting consumer segment. By implementing processes to better handle variability, Li & Fung impart get down the stairs ones skin a better handle on vaticination and sparing conditions. The use of an ERP system, although highly expensive, will improve Li & Fungs ability to look at all the diametric aspects of the society and how they are affecting each other.

By considering variability in their business strategy, Li & Fung will also be equal to(p) protect itself from indebtedness concerns should their customers not be able to buy off their manufacturers. more than stringent credit psychoanalysis should be performed originally outcome letters of credit. Lastly, by implementing represent saving strategies Li & Fung will be able to increase profit, which dec threadd 21% from 2007 to 2008. quaternion areas where Li & Fung can look to vitiated costs are: 1.Number of Warehouses 2.Wage Expenses 3.Number of business organization 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 loss to get a entire of the mark essay, order it on our website: Ordercustompaper.com

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