1. What are the benefits to Li & Fung’s customers of working with the company? Why do companies like The Limited outsource the coordinationof manufacturing to Li & Fung, rather than do it themselves?
We think the benefits of being Li & Fung’s costumers is that they have a big network andcontacts, all over 40 countries , they are offering us different kind of quality, at the most attractive price. Also they had a minor time between an order and thetime of delivery. That’s the reason because companies like The Limited choose to outsource the coordination of their manufactures, because maybe they don’t havethe experience, to choose the best supplier, or the export quotas the labor costs, and so on.
2. Li & Fung does no manufacturing itself. What then is itsrole? How does the company create value?
The role of Li & Fung in this scene is very important, because they are not manufacturing but they have theinformation, contacts, experience, and minimum response time for delivery, besides great quality and price according your needs and capabilities. They create the value andthe relation with the costumer through the staff of each country, they are completed dedicated and focused on meeting the costumer client. So all the costumershave to do is give their prototypes to Li & Fung and they will do the rest.
3. What do you think drives the choices that Li & Fung makes about whoshould produce what for its clients?
We think that Li & Fung make that choices based on the needs of each client, like the quality, price, color, and so on.