Li & Fung is a global trading company with clients beingmajor retailers such as Wal-Mart, Target and Disney Worldserving a network of 12,000 suppliers. Li & Fung is engaged in collaborative planning, relying on collaborative technol-ogy to forecast forthcoming trends. Being an intermediary between customers and suppliers, collaborative planning is critical for the company. Li & Fung used to deal with its cli-ents mostly by phone and fax, with e-mail counting as high technology. But thanks to a new web-services platform, its processes have speeded up. One of the most important tech-nologies has turned out to be videoconferencing. It allows buyers and manufacturers to examine the colour of a mate-rial or the stitching on a garment. The information system also allows Li & Fung to make changes fast as well as to lookacross its operations to identify trends.a) Explain the organizational objectives that CPFR is tryingto achieve. Stress its advantages and disadvantages.b) A complementary process that is intended to match supplyand demand planning is Sales and Operations Planning(S&OP) through functional collaboration. Initially, S&OPhas been used for internal company planning, while recently has extended to include inputs from their collabo-ration trading partners. Recognize the differences between the CPFR and S&OP.Explain the differences in the organizational objectives theyare trying to accomplish.
Li & Fung is a global trading company with clients being
major retailers such as Wal-Mart, Target and Disney World
serving a network of 12,000 suppliers. Li & Fung is engaged
in collaborative planning, relying on collaborative technol-
ogy to forecast forthcoming trends. Being an intermediary
between customers and suppliers, collaborative planning is
critical for the company. Li & Fung used to deal with its cli-
ents mostly by phone and fax, with e-mail counting as high
technology. But thanks to a new web-services platform, its
processes have speeded up. One of the most important tech-
nologies has turned out to be videoconferencing. It allows
buyers and manufacturers to examine the colour of a mate-
rial or the stitching on a garment. The information system
also allows Li & Fung to make changes fast as well as to look
across its operations to identify trends.
a) Explain the organizational objectives that CPFR is trying
to achieve. Stress its advantages and disadvantages.
b) A complementary process that is intended to match supply
and demand planning is Sales and Operations Planning
(S&OP) through functional collaboration. Initially, S&OP
has been used for internal company planning, while
recently has extended to include inputs from their collabo-
ration trading partners.
Recognize the differences between the CPFR and S&OP.
Explain the differences in the organizational objectives they
are trying to accomplish.
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