GMSCM 2013 students visited Li&Fung in Shanghai

June 13, 2014 Shanghai - Accompanied by Prof. Vincent Thomson (Werner Graupe Professor of Manufacturing Automation, McGill University), Prof. Shanling LI (Professor of Operations Management/Management Science, Desautels Faculty of Management, McGill University), Prof. Yongyi SHOU (Director of Zhejiang University MBA program and the Co-director of GMSCM program) and Mr. Matthew MA (Director of GMSCM Recruitment in Greater China, McGill University), and GMSCM 2013 students visited Li & Fung Shanghai, which is the headquarter of Li & Fung Limited China inland.

Li & Fung’s legend story started from 1906 at Guangzhou, and more than a century later, the legendary continues worldwide. Now, as a public company listed in Hong Kong, Li & Fung concentrates Trading, LF Logistics and LF Asia (Distribution) as its core business and serves more than 2000 customers all over the world. The three relative and interactive networks make Li & Fung be a worldwide leading company on design, developing, purchasing and distribution of consumer goods that supplies excellent supply chain manangement service to retailers and well-known brands through its approx. 240 offices and distribution centers over 40 countries.

Guided by Leo ZHAO, Corporate Affairs Managers, we visited Li & Fung LF Asia show room which is not a typical show room we ever knew only exhibits products, for LF Asia show room that looks more like a lifestyle experience center.

Then, Mr. Wei HAN, VP of Development Department, LF Asia, introduced us a great picture of LF Asia. Mr. Wei HAN was also a MBAer graduated from Booth School of Business, Chicago University and worked at BAIN & Company for M&A business before. After joinning Li & Fung, Mr. Wei Han is conducting Li & Fung distribution business to brand management globally and its 5 M&A events. He introduced LF Asia historic stories, present events, and even future blueprints, more than surface touch, deep logic and strategic thought behind these roadmaps were analized and shared.

After his exciting sharing, Prof. Li, Prof. Thomson and students were encouraged to communicate with him about all kinds of questions about LF Asia. This interactive process acknowledge us more deep vision and strategic thoughts about brand management, why LF Asia did it and how LF Asia do it. The newest information to us is that Li & Fung will continue to play hard for supply chain management, but also, already set up the new milestone for brand management, the new group called Global Brands Group (GBG) finished spin-off. The LF Asia new era comes and we will see a more prosperous Li & Fung in decades.

Later, we visited LF products show rooms about home living products as homegirl, an Indian design brand with American rustic style, a Candadian design brand products, garden and outdoor products, gifts etc. From invisible supply chain to the real products, the goods exhibiting on shelves, the style LF designers created, which impressed us that Li & Fung’s supply chain management is not only a perfect case choosed by Harvard Business School, it is a real effective weapon competing on the market.

As a fundamental part of supply chain, logistics plays more and more important on internet era that time means more and more, customer asks faster and faster. Li & Fung acquired some logistic companies as well, as China Container Line Limited, which is assisting to strengthen any part of supply chain to be competent.

LF Logistics Senior VP, John GENG, served in Li & Fung for more than 10 years, introduced us the whole picture of LS logistics in the afternoon that enlarge our acknowledgement of Li & Fung. From typical distribution center to whole logistic concept,and from traditional logistics to O2O logistics, Li & Fung has a global based logitics design, including warehouse, distribution center all over the world etc. In domestic China, Li & Fung is a poineer in apparel logistics, except common logistics service, LF logistics even offer value added service.

Mr. John GENG gave us a great speech about logistics, additonally, he papread a case for us to discuss about logistics. Also, Mr Geng is quite generous to give us sufficient time to discuss with him. All of us are eagering to talk with him about all kinds of questions. We learnt that LF logistics also affected a lot by labor cost and rental cost increase, which makes them to use more robotic equipment and enter into tier two or three cities instead of Shanghai etc.

In the middle of the visiting, we were even gifted by Ms. Susanna CHIU, director and group chief representative of Eastern China of Li & Fung Development (China) Ltd, some special and well known books issued by Li & Fung in past, which are about Li & Fung experience sharing and knowledge heritage for trading and supply chain management. Prof. SHOU represented ZJU MBA to send Li & Fung speakers and attendee gifts as well.

As a classical benchmark of supply chain management, Li & Fung is a place for GMSCMers must to visit. Also, as a company that 4 cases chose by Harvard University case center and one of two companies which are the most worldwide creative and competent in Hongkong, Li & Fung is worthy to study and research for every MBAer.

Contributor: Stan SHI (GMSCM 2013)