Thursday, August 25, 2016
LI & FUNG IS MISSING THE OPPORTUNITY TO BE THE GLOBAL RETAIL OMNICHANNEL SUPPLY CHAIN SERVICE LEADER
L&F struggles with retail and offers logistics commodity services? They have large volumes for logistics rates to use to sell services. Much of this falls into the same old that many competitors offer in whole or part and does not address what is happening in global business.
As technology and platform businesses push back on middlemen, should they stay the course? Is this a long-term viable approach? Or can more be done? Are they missing moving in a new direction given the dynamics of global omnichannel e-commerce and the Amazon Effect?
Retailers are struggling with omnichannel. Li & Fung is uniquely positioned to drive supply chain transformation with vital time compression, inventory velocity, extend the supply chain upstream, and implement advance process and technology. They can fill a serious void.
Doing it would make L&F the leader in omnichannel supply chain services for retailers around the world. The shift from logistics to supply chain services would make L&F unique and create substantial differentiation and separation from competitors. Plus these supply chain steps would also place them to grow with manufacturers.
LTD Management believes this is a significant opportunity for Li & Fund. It is, by far, the better course of action than providing standalone logistics services.
Here is the link to a Wall Street Journal article on L&F’s current struggles—