After a solid finish to 2013, Li & Fung Limited is currently focusing on finalizing the next Three-Year Plan (“3YP”) (2014 – 2106) to be announced in March 2014. As one of the new initiatives in the next 3YP, the company is establishing a dedicated Vendor Support Services business unit to enhance factory and worker safety raise standards and improve operational efficiencies in its global supply chain.
The Vendor Support Services business, including vendor compliance, will be led by group chairman Dr. William Fung Kwok Lun, and this new initiative will be expanded as an integral part of Li & Fung’s new 3YP. The new unit will incorporate the company’s existing range of vendor support services to factories plus new offerings that include product testing, provision of logistics support to factories, and other practical input to enable factories to move up the value chain. Presently, the company’s vendor support services include safety and compliance training and audits, trade credit services as well as the handling of letters of credit, product liability insurance, fabric, trims and accessories procurement, product development and technical and operations support, to about 15,000 factories.
Introduced against the backdrop of the tragedies in Bangladesh, the expanded services come at a time when more garment production is moving into emerging economies and when credit for factory owners is tighter than ever. Many of the company’s vendors have welcomed Li & Fung’s skills, expertise and services to help them tackle these challenges and upgrade their operations.