Li and Fung Case Analysis

Most manufacturing enterprises are organized as networks of manufacturing and distribution sites that procure raw materials, transform them into intermediate and finished products, and distribute the finished products to customers. The simplest network consists of one site that performs both manufacturing and distribution. More complex networks, such as those required to manufacture mainframe computers, span multiple sites that may be scattered around the world.

The logistics and IT departments will head this stage of the process. The objective will be to speed the flow of information to the various users while reducing costs, especially in inventory. The system will be online, making it accessible on a "real time" basis and will connect the mainframe to an Internet service provider where anyone anywhere in the world can log on. Customers will benefit from the new system the most. They will be able to check on product information such as prices, sizes, colors, availability, and even upcoming sales.

The extranet can give a business new life by providing a self-service channel for partners to complete critical orders and transactions. The extranet is a direct link to the company’s data servers through the internet. This access is beneficial to both parties but also

In this report, I am going to explain the technologies which are required for e-commerce as well as the technologies that might be required by Cuckoo – a small business selling clocks and watches that is willing to expand via the internet. The technologies which I will be justifying include the hardware, software and networking needed for e-commerce.

One of the major features of globalization has been the mergence and increased importance of third party logistics providers and support industries for shipping and transport operations. As businesses become more global in their scope and supply chains grow ever wider in scope and more globally integrated, the complexities and considerations of achieving efficient and cost-effective transport and support services grows more difficult, and most manufacturing and distribution companies outsource these services to a variety of different companies specializing in specific aspects of supply chain management and operational assistance. Achieving success as such a specialized company can be easy if the company maintains proper and accurate analyses of capabilities and environments and has appropriate internal controls, however failure to ensure these components and processes are in place can be disastrous, especially when combined with an emphasis on rampant growth.

Cisco Systems has a network of component suppliers, distributors, and contract manufacturers that are linked through Cisco’s extranet. When a customer orders a Cisco product at Cisco’s Web site, the order triggers contracts to manufacturers of printed circuit board assemblies when appropriate and alerts distributors and component suppliers. Cisco’s contract manufacturers are aware of the order because they can log on to Cisco’s extranet and link up with Cisco’s own manufacturing execution systems.

Li & Fung has developed a powerful network with their suppliers. With this network Li & Fung created a holistic supply chain management (SCM) strategy. This supply chain management gives benefits their clients as by this order

In addition to tactical solution, internet technology may also lead to the development of SCM systems among business organizations. Through this innovation, product customization, information searches and online deliveries are some common services that are now available to the customers. Manufacturers, suppliers and distributors on the other hand, benefit from internet utilization through well-coordinated information sharing. Online auctions are even made possible with this technological development.

A recent study conducted by the Forrester Research indicates that U.S manufacturers are dependent on the benefits of Information Technology to improve the supply chain, improve the cycle time and receive high efficiency in order to deliver the products to their customers within the time frame. Stevens defines Supply chain management as the “series of interconnected activities that are concerned with the planning, coordinating and controlling materials, parts and finished goods from the supplier to the customer and works as a transporting link between these facilities.” With the development of Information Technology the companies has adapted online communications which helps to increase the interaction between firm and the customer effectively. According to Bakos & Brynjyoolfsson (1993) Information Technology decreases transactional costs between the transaction costs between the buyers and suppliers and creates a more cooperative governance structure which finally results in closer buyer- supplier relations. The research revealed that the effect of information technology on Supply chain management are on 4 aspects which are purchase, logistic, firm, vendor relationship management and customer relationship management.

The internet is fast becoming the way in which consumers do business, where consumers once went to a retail store to select their product or any service they needed, now they only need to log onto the internet and make a purchase. The internet has cut the time between production and sale by allowing distribution direct from warehouse to consumer.

PROBLEM STATEMENT - Supply chains have become a lot more complex, nuanced and sophisticated. With remarkable technological innovations, seamless borders and global trade policies, role of being a foreign intermediary for multinational manufacturers, is in great threat. It is becoming increasingly easier for companies to source a product on their own by going factory-direct thus eroding the value proposition for intermediaries. There is a paradigm shift from Build-to-Stock to Build-to-Order and building as close to the delivery point as possible. The challenge then is how embedded can an intermediary be in a customer’s journey from value creation to value capture. LF’s 2015 revenue has been $18.8B and has been steadily declining for past several years without any significant growth in operating profit at the level of 2009{Ref: Figure}. It is therefore important for

There are many internet based business-to-business (B2B) and e-commerce exchanges conducted through marketplaces. One of these marketplaces is a Maintenance, Repair and Operation Hub that serves many industries in the services of non-production products. This company, known as BizBuyer.com is a public internet based-product and service applicator who focuses on company’s needs and marketing objectives, such as designing logo’s, business cards and other global company formation. This site helps with the systematic sourcing of operating inputs within the companies that purchase from this site. This type of marketplace gives buyers a wide variety of MRO catalogs from all types of suppliers. In MRO hubs, the operating inputs are shown to be

Singapore has long built its economy on its strategic positioning for trade. The country is now home to the world's second-largest container port according to the World Shipping Council (2013). The country's position as a leading trade makes it a natural place to find solutions to global supply chain issues, and has also encouraged a significant amount of foreign direct investment in the country. Foreign companies have set up shop in Singapore, often in either services or retail. This paper will analyze some of the issues that foreign firms dealing in Singapore have with respect to global supply chain management.

Nowadays, the three main business group of Li&Fung are the export trading, distribution and retailing . In the world, Li&Fung has a network of 80 sourcing offices in 40 countries and regions. In addition, Li&Fung has over 23,000 employees worldwide. Li&Fung is made up of many different parts, each beach of the company has a special mode of supply chain operations to suit their different market

Extranet is being used for communications and access to customer and supplier portals and other business partners such as business processing organizations. Information retrieved from the customers’ portals is vital for the organization. An example is the customer concern that is being raised to the products delivered to the customer. Customers usually require products to be validated and a fast response to the inquiries and customer request is necessary. Without such access necessary reactions would not be possible. In addition, quality and delivery performance is being rated by the customer at specified frequency. This determines the company’s ability, as a supplier, to quote to the next programs being offered by the customer. Further business