Li & Fung is a global trading company with clients beingmajor retailers such as Wal-Mart, Target and DisneyWorld serving a network of 12,000 suppliers. Li & Fungis engaged in collaborative planning, relying on collaborative technology to forecast forthcoming trends. Beingan intermediary between customers and suppliers, collaborative planning is critical for the company. Li & Fungused to deal with its clients mostly by phone and fax, withe-mail counting as high technology. But thanks to a newweb-services platform, its processes have speeded up. Oneof the most important technologies has turned out to bevideoconferencing. It allows buyers and manufacturers toexamine the colour of a material or the stitching on a garment. The information system also allows Li & Fung tomake changes fast as well as to look across its operationsto identify trends.a) Explain the organizational objectives that CPFR is tryingto achieve. Stress its advantages and disadvantages.b) A complementary process that is intended to match supplyand demand planning is Sales and Operations Planning(S&OP) through functional collaboration. Initially,S&OP has been used for internal company planning, whilerecently has extended to include inputs from their collaboration trading partners.Recognize the differences between the CPFR and S&OP. Explainthe differences in the organizational objectives they are trying toaccomplish.
Li & Fung is a global trading company with clients being
major retailers such as Wal-Mart, Target and Disney
World serving a network of 12,000 suppliers. Li & Fung
is engaged in collaborative planning, relying on collaborative technology to
an intermediary between customers and suppliers, collaborative planning is critical for the company. Li & Fung
used to deal with its clients mostly by phone and fax, with
e-mail counting as high technology. But thanks to a new
web-services platform, its processes have speeded up. One
of the most important technologies has turned out to be
videoconferencing. It allows buyers and manufacturers to
examine the colour of a material or the stitching on a garment. The information system also allows Li & Fung to
make changes fast as well as to look across its operations
to identify trends.
a) Explain the organizational objectives that CPFR is trying
to achieve. Stress its advantages and disadvantages.
b) A complementary process that is intended to match supply
and demand planning is Sales and Operations Planning
(S&OP) through functional collaboration. Initially,
S&OP has been used for internal company planning, while
recently has extended to include inputs from their collaboration trading partners.
Recognize the differences between the CPFR and S&OP. Explain
the differences in the organizational objectives they are trying to
accomplish.
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