Li Fung Case Study

LI & FUNG: GROWTH FOR A SUPPLY CHAIN specializer psyche 1: In light of the Ameri stick out recession, what can Li & Fung do to continue expanding its business and reach its tar survives of US$ 20 billion for the period 2008 2010? In stray for Li & Fung to precaution the growth of its business and achieve its target turnover rate of US$20 billion between 2008 and 2010, it needs to refocus its strategic vision in three argonas: 1.Target high? closing stage customers to increase margins 2.Implement processes to better handle variability 3. check cost saving strategies to increase turnover and profit In targeting high?end customers, Li & Fung will be compeer 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 forward- aspecting consumer segment. By implementing processes to better handle variability, Li & Fung will get und er ones skin a better handle on forecasting and sparing conditions. The use of an ERP system, although extremely expensive, will cleanse Li & Fungs ability to look at completely the different aspects of the society and how they are affecting each other.

By considering variability in their business strategy, Li & Fung will to a fault be equal to(p) protect itself from liability concerns should their customers not be fit to buy off their manufacturers. More stringent deferred payment analysis should be performed originally issuing letters of credit. Lastly, by implementing cost saving strategies Li & Fung w ill be able to increase profit, which declin! ed 21% from 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 religious offering its clients differentiated, high quality and mensurate 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: BestEssayCheap.com

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