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Walmart and Li Fung
Walmart and Li Fung
FUNG
GROUP 6
QUESTION - 1
Other than need to expand, what other reasons would
Wal-Mart have for opening stores globally?
Why would the company want a strong centralized
control over its store?
Why Would it want strong local control?
disappeared
Absence of monitoring/tracking system
QUESTION - 2
What were the major problems Wal-Mart Faced
During the initial years of Operation in South
America?
What were the major drivers of these problems?
QUESTION - 3
Managing dispersed production forced us to get smart
about dissecting the value chain. Explain.
DISPERSED MANUFACTURING
E.g.: Transistor radios
QUESTION - 4
When large manufacturing companies managing their
own supply chain, how does it help to lower markdown
for the retailers?
LOWER MARKDOWN TO
RETAILERS
QUESTION - 5
They
Cost
QUESTION - 6
CONTD
STRATEGIC OBJECTIVE
Primary alignment is around customer and their
needs
Develop a close, risk- and profit-sharing
relationship with business partners
Lower costs in sourcing, warehousing and
transportation
Shorten product lead time and delivery cycles
QUESTION - 7
Stage 2
Stage 1
Regional
Sourcing
Agent
Manager
and
Deliverer
of
manufactu
ring
Programs
Stage 3
Stage 4
Dispersed
Manufactur
ing
Integrated
Supply
Chain
STAGE - 1
Geographical Expansion: Offices in Taiwan,
Korea, Singapore
Assortment Packaging : assembling the best
components provided in whole region
Stage 2: Customization
Understand the customer idea
Develop a product program
Search the market to find the right type of
materials, colors and quantities
Take the product concept and realize some
prototypes
Create an entire program for the season
specifying the product mix and the schedule
Contract for resource working with factories to
plan and monitor production mix and schedule
Final Order
STAGE - 3
Li & Fung does the high-value-added front-and back-end
tasks in Hong Kong
Front end design
Back end quality control
engineering production
testing logistics
planning
Managing
production
We
deliver
a
sophisticated
product
and we deliver it fast
QUESTION 8
THANK
YOU !