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Kultur Dokumente
Fung
GROUP 2
Question - 1
Other than need to expand, what
other reasons would Wal-Mart have
for opening stores globally?
Why would the company want a
strong centralized control over its
store?
Why Would it want strong local
control?
Question - 2
What were the major problems WalMart Faced During the initial years of
Operation in South America?
What were the major drivers of these
problems?
Question - 3
Managing dispersed production
forced us to get smart about
dissecting the value chain. Explain.
Dispersed manufacturing
E.g.: Transistor radios
Source components from
Korea/Taiwan
Send kits to China for assembly
Treat and inspect in Hong-Kong
Ship out to the world.
Question - 4
When large manufacturing
companies managing their own
supply chain, how does it help to
lower markdown for the retailers?
Question - 5
Explain the role of Li & Fung in
shortening the buying cycle and how
does it help them to lower the cost in
the supply chain?
Question - 6
How is the organization of Li & Fung
different from others in the industry?
How does this help the company
achieve its strategic objectives?
Contd
7 pillars of Li-Fung supply chain: Being customer-centric and market demand driven
Focus on core competency and outsource non-core
activities
Develop a close, risk and profit-sharing relationship
with business partners
Design, implement, evaluate and continuously improve
the work flow, physical flow, information flow and cash
flow in the supply chain
Adopt information technology to optimize the
operation of the supply chain
Shorten production lead time and delivery cycles
Lower cost in sourcing, warehousing and transportation
Strategic Objective
Primary alignment is around
customer and their needs
Develop a close, risk- and profitsharing relationship with business
partners
Lower costs in sourcing,
warehousing and transportation
Shorten product lead time and
delivery cycles
Question - 7
What were the basic changes that
took place in Li & Fung as it grew
over the years both in size and
geographic scope? What effort did
the company take to hold the
organization together?
Stage 2
Stage 1
Regional
Sourcing
Agent
Manager
and
Deliverer
of
manufact
uring
Programs
Stage 3
Stage 4
Dispersed
Manufactu
ring
Integrate
d Supply
Chain
STAGE - 1
Geographical Expansion:
Taiwan, Korea, Singapore
Offices
in
Stage 2: Customization
Understand the customer idea
Develop a product program
Search the market to find the right type of
materials, colors and quantities
Take the product concept and realize
some prototypes
Create an entire program for the season
specifying the product mix and the
scheduleworking with
Contract for resource
factories to plan and monitor production
mix and schedule
Final Order
STAGE - 3
Li & Fung does the high-value-added front-and back-end
tasks in Hong Kong
Front end design
Back end quality
engineering
control testing
production planning
logistics
Managing
production
We
deliver
a
sophisticated product
and we deliver it fast
Question 8
With the advent of IT, doing business
became both easier and difficult for
the company. How did the company
envisage reconciling with the new
systems and also retaining the
traditions they had built over the
years?
Thank
you !