Li &fung ppt .ppt
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Transcript of 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 .
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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.
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,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.