Case Study of Li &; Fung Group's Supply Chain Layout in China

• Main Authors: Lai, Yen-Yu, 賴彥伃
• Other Authors: 洪世章
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/89101127271810698287

碩士 === 國立清華大學 === 科技管理研究所 === 100 === The main focus of this research is Li &; Fung’s supply chain layout in China. Given the economic and political environment in today’s China, this research intends to find out the pros and cons for Li &; Fung’s supply chain layout in China. Thus, we can have a better conclusion on what Li &; Fung’s supply chain layout strategy in China is. In this research we know as labor cost and material cost increase, China still remains the main sourcing country for Li &; Fung. The reason is that China has advantages in geological location, management cost, transportation infrastructures, and economy of scale over other developing countries (which have low purchase cost). Also, the rise of consumerism and domestic demand expansion (due to China’s 12th five-year plan) have made China one of Li &; Fung’s main consumer (export) markets. As China rises, the importance of its market for Li &; Fung grows. 　 The vast improvement in China’s business trade environment, logistics, and transportation infrastructures have great benefit on Li &; Fung’s supply chain management. Originated in Hong Kong, Li &; Fung is born with advantages in dealing with the special characters in China’s business environment; plus Li &; Fung’s specialty in strategy and management, its market development in China is doing well. Currently, Li &; Fung’s business is mainly in China’s “optimized development zones”. “Key development zones” are possible area for future business development. 　 This research also points out that by executing a more flexible way of acquisition; Li &; Fung is able to preserve the valuable human resource and core function of the purchased organization. Through a series of successful acquisition, Li &; Fung expands its business in China. Furthermore, Li &; Fung plans to apply its “onshorestrategy” (proved successful in the U.S.) in China market; further increase its market in China.