In the midst of its supply chain overhaul, Li & Fung’s efforts to modernize and digitize sourcing appear to be already paying off.
The company announced results for the six months ended June 30, reporting continued business progress despite what’s going on both in the apparel sector and in the bigger global environment.
Part of its new supply chain model and its Three-Year Plan, Li & Fung is working to introduce greater speed, innovation and digitalization.
[Read more about Li & Fung’s revamping efforts: Here’s How Li & Fung Plans to Create the Supply Chain of the Future]
The company’s core operating profit in the first half increased 11.9% to $170 million. Turnover stabilized in the period, decreasing just 2.1% to $7.26 billion. Thanks to ongoing efforts to improve operating efficiency and productivity, operating costs fell 4.5% to $665 million.
Pleased with the company’s first half performance, Li & Fung Group CEO Spencer Fung said, “Our goal is to create the supply chain of the future to help our customers navigate the disruption the retail industry is facing. The new supply chain model we are creating is gaining traction and customers are reacting positively to new supply chain solutions such as our speed model and virtual design service.”
Seconding the sentiment, Group chairman William Fung said the company has made “substantial” progress across several areas.
“Our wide network of suppliers gives us the ability to quickly adjust supply chain solutions for our customers as new situations emerge. Adding to this core strength, we are singularly focused on greater speed, innovation and digitalization. We will not only meet and exceed the expectations of our existing and new customers for a supply chain that meets changing consumer demands, but we will also employ new technologies to create an end-to-end digitalized supply chain of the future that will anticipate future requirements.”