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Li-Fung（下文简称LF）能够成为同业中中的佼佼者，是因为它的有效管理，与供应商和客户的良好关系，以及它的运营方式。LF对于运营采购业务有悠久和坚实的经验—这家公司已经成立了百年之久。LF的经营策略是建立和管理高容量、基于客户的快速反应的供应链系统。通过同时建立软硬供应链，LF可以通过专注经营一种商品来避免市场风险。更进一步来说，整体供应链是LF的管理核心所在，因为它通过对供应链的整体统一管理，提供了附加价值服务。

With the growing of the internet business, the existing business model of Li-Fung is being challenge as more and more B2B portals and online exchange starts to merge. A new way of conducting business is required. This case is to look into the Li-Fung traditional business model and analysis the new IT strategy that LI & Fung had implemented and what type of risk and recommendation can be given.

Li-Fung的背景与成就 Li-Fung Background and its success

Li & Fung (following will present as LF) was able to outperform its competitors within the same industry for reasons that originated from its effective management, relationships with suppliers and customers, and operations. LF has a very long and solid experience into conducting sourcing business; the company was founded more than 100 years. The company strategy is to source and manage the global Supply Chain for High volume and time sensitive consumer goods. By working in both Hard and Soft line, LF was able to avoid market risk associated with only concentrating on one category. Further, the Holistic supply chain management was one of LF core strength as it provides value-added services across the entire supply chain process. Such supply chain customization provide shorter order turnaround time from 3 months to 5 weeks which in translate into less inventory cost for the customers. Further, LF existence also reduce the matching and credit risk and offering QA to its customer. The given economic of scale and global network that LF is equipped with, helped to offer a lower cost and more flexible sourcing than its rigid competitors. Further, LF has an extensive knowledge base globally through acquisitions of rival sourcing companies. Furthermore, Li & Fung provided up-to-date fashion and market trend information to its clients, which made the clients more flexible to changes in their industries

Li-Fung的电子信息化道路 IT road of Li-Fung

As early as 1995, LF had launched an intranet to link the entire group offices and manufacturing sites to simplify and expedite the internal communication. Real time and digital image capabilities allowed online inspection and troubleshooting. In 1997, secure extranet sites were launched to link the customer with the company. Online product development and real time tracking are achievable. Customization on time is now not anymore a fantasy. LF staffed approx 60 people within the IT department and having the development of both the intranet and extranet outsourced.

来自网络的威胁 Threats from the WEB

LF recognized the threats from the online companies as the followings: 1. Equipped with well of cash surplus, online companies can use those to damage the offline companies by acquiring them or their staff. 2. Off-line competitors partner with a dot-com and become a significant competitor in short time.