Li &fung ppt .ppt

8/9/2019 Li &fung ppt .ppt

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)er%ices +atching each customer order (ith the most aroriate

sulier. ,i%ision manager recommend sulier on basis of need of

customer.

)er%ed as intermediary in contract negotiations bet(eensulier and customer.

"lso ro%ide %alue added ser%ices li!e -uality assurance and ontime deli%ery.

One $fth of sta seciali/ed in -uality assurance

isit by -uality control engineers in each stage of roductionrocess li!e ra( material insection # cutting & se(ing rocess

insection etc. rac!ing roduction to ensure suliers $nished order on time.

2or!ed (ith suliers to create roduction schedule .

Heled suliers locate ra( material and comonents.

"lso ro%ide customi/ed ser%ice to tailor ser%ice to each

customers needs .



3e( )tructure liminate e8clusi%e airings of di%isions and customers

:estrict suliers geograhically to each di%ision.

Customers could choose their o(n di%ision based on location of

manufacturing.

hree di%isions restructured in Hong ;ong and t(o ne( di%isionscreated in aiei.

Creation of Hubs < di%isions (or!ing in this system could maintainsta in other Li & Fung o=ces (ithin their region .

Lau (ishes to introduce this system to all soft goods di%isions.

2ants better %alue from the net(or! and (ants to associate eachdi%ision familiarity (ith e%ery te8tile factory in their area.

)uliers also (or! e=ciently (ith local traders gi%ing ad%antage.

2ould ro%ide faster ser%ice and more %alue in terms of location

to customers.

4ossible dra(bac! could be de emhasi/ing of relationshis

bet(een indi%isual di%isions and customers.



,ecision ,i%ision +anager Charles Ho needs to from (here to source roduction

for order of >0000 s!irts from Classi-ue < from manila or -uindao +anila sulier charging ?*.00 er s!irt (hereas -uindao sulier

charging [email protected] due to less labour costs in China.

4roblem in suer%ising roduction in China as sulier not (or!edre%iously (ith classi-ue and trained sta not a%ailable of di%ision atchina

Cost of sending sta to china might e8ceed ?10A00.

:e%enue from classi-ue (ould be ?1000.

,irect labour cost should be belo( A0 ' of re%enue (hich is e8actlycoming out and could be more if number of %isits increase.

Could a%oid this cost if transfer order to other di%ision based in )eoul.

But (ould forego his commission if he does so .

:ecommendation

)hould recommend change of di%ision in larger interest of the comanyas the same changes (ill be reected in the future by change instructure and (ould be areciated by Lau.

Li &fung ppt .ppt

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