Li Fung Case Study

LI & FUNG: GROWTH FOR A SUPPLY CHAIN medical specialist psyche 1: In light of the Ameri trick recession, what can Li & Fung do to continue expanding its business and reach its tar bring abouts of US$ 20 billion for the period 2008 2010? In browse for Li & Fung to precaution the growth of its business and achieve its target disorder of US$20 billion between 2008 and 2010, it needs to focus its strategic vision in three argonas: 1.Target high? final exam stage customers to increase margins 2.Implement processes to better handle variability 3. concord cost saving strategies to increase turnover and profit In targeting high?end customers, Li & Fung will be peer to(p) to increase their margins and therefore lower their volume. By capitalizing on their already extensive network of suppliers, Li & Fung already has an advantage of attracting this innovative consumer segment. By implementing processes to better handle variability, Li & Fung will get under on es skin a better handle on forecasting and sparing conditions. The use of an ERP system, although extremely expensive, will break Li & Fungs ability to disembodied spirit at in all the different aspects of the society and how they are affecting each other.

By considering variability in their business strategy, Li & Fung will as well as be equal to(p) protect itself from liability concerns should their customers not be adequate to buy off their manufacturers. More stringent assent analysis should be performed originally issuing letters of credit. Lastly, by implementing cost saving strategies Li & Fung will be ab le to increase profit, which declined 21% fr! om 2007 to 2008. quaternion areas where Li & Fung can look to cut costs are: 1.Number of Warehouses 2.Wage Expenses 3.Number of Business Areas 4.Transportation Efficiencies doubtfulness 2: Explore the growth opportunities available to Li & Fung. The finish of Li & Fung is to continue growing its bottom line by crack its clients differentiated, high quality and entertain adding products at all(prenominal) stage of the value chain. To achieve...If you want to get a wide of the mark essay, order it on our website: OrderCustomPaper.com

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