Li & Fung, the Hong Kong-based supplier of supply chain services, has set out its vision of the supply chain of the future focusing on speed, innovation and digitalisation to help brands and retailers navigate the digital economy.
It outlined the three-year plan as it revealed a fall in turnover operating profit for 2016 resulting from the tough retail environment.
Turnover was down 11 per cent to US $16.8 billion for 2016, while core operating profit fell 19.6 per cent to $412 million.
Li & Fund was founded in 1906 in Guangzhou, and has grown into a multinational corporation managing complex supply chains for brands and retailers around the world. It said the new three-year plan represented the company’s continuing business transformation with the goal of creating the supply chain of the future and helping brands and retailers to better respond to consumer trends and navigate the digital economy.
Group chief executive Spencer Fung said: “We have taken a zero-based approach to imagining the future of retail and how we can best support our customers. Our vision is to build the Supply Chain of the Future, help our customers navigate the digital economy, and strive to improve the lives of a billion people in the supply chain.
“Speed, innovation, and digitalization of the supply chain are at the heart of our plan. We have also realigned our leadership team, reorganizing into two new divisions to bring more innovative solutions to our customers and suppliers. I am more excited and optimistic about our business prospects than ever before.”
Speed: The company will focus on simplifying its business and using productivity initiatives to drive internal agility. this is expected to result in shorter lead times for customers competing in the digital economy and productivity gain reducing operating costs for the company.
Innovation: The company will focus on new ways of working, partnering for new products, and new business models which feature supply chain solutions for customers and vendors. This is expected to result in long-term growth over the course of the Three-Year Plan.
Digitalisation: The company’s goal is the digitalisation of the entire supply chain. The Company aims to digitalise all key aspects of the supply chain from product development, material costings, and sampling, to the final creation and delivery of products. This end-to-end platform will make customers’ processes more seamless, efficient and cost effective and enable the company to deliver data-driven insights as well as customized services to brands and retailers.
Spencer Fung said: “The next three years will be one of the most exciting periods we have embarked on. As an organisation we are fully aligned and focused on the continued transformation and growth of our business. We are well on the way with our plans to digitalize the supply chain, allowing us to create an ecosystem that benefits all our stakeholders. We are confident that our strategic initiatives and reorganization will enable us to drive long-term success for our business and sustain our position as a global supply chain leader well into the future.”