As one of the initiatives of its next three-year plan (3 YP), Li & Fung is establishing a dedicated Vendor Support Services business unit in order to enhance factory and worker safety standards and improve operational efficiencies in its global supply chain, led by the Group’s Chairman Dr. William Fung Kwok Lun. This new unit will incorporate the company’s existing vendor support services to factories in addition including product testing, provision of logistics support to factories in order to enable them to move up the value chain.
At present, 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. Further, the company will continue to ensure that the provision of such vendor support services conforms with the agreements on provision of services to the company’s customers. The company views this new initiative as a key ingredient of its enhanced business offering in its new 3YP.