Li & Fung says new unit aims to improve safety
Li & Fung said it is establishing a vendor-support services business unit to enhance factory and worker safety, raise standards, and improve operational efficiencies in its global supply chain.
A leading sourcing company, Li & Fung provides services to about 15,000 factories in its vendor base to enhance their competitiveness, operational efficiency and ability to comply with ever-tougher health and safety requirements, the company said.
In an announcement, Li & Fung said it "believes its responsibility is to play an even bigger role
in bringing about and speeding up systematic, positive change among
vendors. Introduced against the backdrop of the tragedies in Bangladesh,
the expanded services come at a time when more garment production is
moving into emerging economies and when credit for factory owners is
tighter than ever," according to a company statement.
"The new unit will incorporate the company’s existing range of vendor support services to factories plus new offerings that include product testing, provision of logistics support to factories, and other practical input to enable factories to move up the value chain," said Li & Fung, saying that at present, it offers vendor support services such as 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.
The company said that while revenue generated from vendor-support services is a small part of its total revenue, it "views this new initiative as a key ingredient of its enhanced business offering in its new three-year plan and an important component of the company’s efforts to improve sustainability in the global garment industry."
We’ll send it to you!
Register now and get the free AS Daily.