Li & Fung Limited has created a new business unit to focus more intensely on factory and worker safety following recent tragedies in the garment industry, as well as the on-going needs of its global vendor base.
The new business unit Vendor Support Services will be led by Group Chairman Dr. William K. Fung, and this initiative will be an integral part of Li & Fung’s new three-year business plan to be unveiled during the company’s annual results announcement in March 2014.
The unit will incorporate Li & Fung’s existing range of support services to factories that include compliance, safety 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. Additional services will include product-testing, provision of, logistics support to factories and other practical input.
“We already offer services to the 15,000 factories in our vendor base to enhance their competitiveness, operational efficiency and ability to comply with ever-tougher health and safety requirements,” said Dr. Fung. “As the leading sourcing company in the world, we feel our responsibility is to play an even bigger role in bringing about and speeding up systematic, positive change in the industry.”
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 our vendors have told us they welcome our skills, expertise and services to help them tackle these challenges and upgrade their operations. We will continue to ensure that the provision of such services conforms with our customer agreements,” said Dr. Fung.
“While revenue generated from Vendor Support Services is a small part of the total revenue, we view this new initiative as a key ingredient of our enhanced offering and an important component of our efforts to improve sustainability in the global garment industry,” he concluded.
“After a solid finish to 2013, we are now turning our attention to the next three-year plan,” said Bruce Rockowitz, Group President and Chief Executive Officer of Li & Fung Limited.
“The vendor support services unit is one of several new and exciting initiatives that we are finalizing,” concluded Mr Rockowitz.
Based in Hong Kong, Li & Fung Limited is recognized as the world’s leader in consumer goods design, development, sourcing and distribution. It manages the supply chain for retailers and brands worldwide with over 300 offices and distribution centers in more than 40 economies spanning across the Americas, Europe, Africa and Asia. Through its three interconnected Business Networks Trading, Logistics and Distribution the Group offers a spectrum of services that covers the entire supply chain end-to-end.
