PVH Corp. is stepping up its supply chain efforts with a new alliance.
The apparel giant entered agreements with Li & Fung Limited, a Hong Kong-based supplier company, for a new supply chain relationship.
“Our focus is to create a more effective and efficient supply chain that will enable us to adapt and evolve so we can stay ahead in our rapidly changing industry,” PVH Europe and Tommy Hilfiger Global CEO Daniel Grieder said. “This transformation in our sourcing strategy is an important step in our initiative to improve speed to market and for the faster integration of consumer insights into our new collections.”
Both business will change their existing non-exclusive buying agency agreement into a new strategic partnership, which will enable Li & Fung to provide value-added services to PVH. The strategic partnership is projected to benefit both parties and foster technology advancement in PVH’s supply chain.
“We’ve had a long-standing relationship with PVH and we’re excited to continue building on that under this new strategic partnership where we’ll have an opportunity to create what we see as the Supply Chain of the future,” Li & Fung group chief executive officer Spencer Fung said.
The transaction is expected to close on July 1.
PVH’s strategic relationship with Li & Fung is timely with Li & Fung’s recent supply chain digitization efforts. In September, the company announced that it will provide comprehensive radio-frequency identification (RFID) and Internet of Things (IoT) solutions for global retailers. Catalyst, a global retail solutions supplier and part of Li & Fung, teamed up with RFID services developer Smartrac to enable retailers to leverage data in their supply chains.