Creating the Supply Chain of the Future Sunil Shewakramani
February 2018
www.funggroup.com Global sourcing & logistics services to 8,000 retailers in 100+ countries from 15,000 vendors in 60+ countries
Retail over a dozen brands with 3500+ points of sale in Greater China an Southeast Asia
Leadership development in cooperation with leading global academic institutions NRF The Big Show I
2018
Global branded fashion accessories, footwear, and apparel company with 350+ licensed or controlled brands
Global retail, distribution, supply chain, and technology research
Investment in retail and supply chain technology companies Spencer Fung
Li & Fung Global Network Over 250 offices and DCs in more than 40 economies with some 22,000 employees Trading Logistics
EUROPE
Hong Kong Headquarters
Bulgaria France Germany Italy Jordan Lithuania Netherlands Portugal Romania Spain Turkey UK
THE AMERICAS Brazil Chile Dominican Republic Guatemala
AFRICA
Honduras
Egypt
Mexico Nicaragua
Madagascar
Peru
Morocco
USA
South Africa
Mauritius
Spencer Fung
End-to-End Supply Chain Solutions
NRF The Big Show I
2018
Spencer Fung
Three-Year Plan Goal (2017 – 2019)
Our goal is to create the supply chain of the future to help our customers navigate the digital economy and to improve the lives of one billion people in the supply chain.
Three-Year Plan Core Themes
Speed
NRF The Big Show I
2018
Innovation
Digitalization
Spencer Fung
Speed
• Externally to increase the velocity of our customers’ supply chains, to meet growing consumer expectations driven by e-commerce • Internally using rapid prototyping to operate as fast as a startup
Innovation
• We are building a culture of innovation in the company to provide new, differentiated products for our customers and flexibility in our business models to expand our service offering.
• Open innovation platform “The Kitchen” turning ideas into real business
8
Digitalization
• Our digital platform will provide end-toend visibility for our customers and allow us to be at the forefront of digital disruption and capture data to drive insights
• First step is to digitalize the design, sampling and fitting processes
Lead with purpose
Make life better for a billion
Be the example Get your customers involved Use your connections, expertise and passion to make a difference Visit: Li & Fung Foundation website
Center of Excellence (Video: LF DPD CoE) Will be inserted when finalized
07 NRF The Big Show I
2018
Spencer Fung
Virtual Design – Simulate Draping
08 NRF The Big Show I
2018
Spencer Fung
Virtual Design – Check Tension and Fit
09 NRF The Big Show I
2018
Spencer Fung
Virtual Design – Define Material
10 NRF The Big Show I
2018
Spencer Fung
Virtual Design – Change Patterns, Placement & Direction
11 NRF The Big Show I
2018
Spencer Fung
Virtual Design – Change Colorways
12 NRF The Big Show I
2018
Spencer Fung
Virtual Design – Define Print & Pattern
13 NRF The Big Show I
2018
Spencer Fung
Digital Store
14 NRF The Big Show I
2018
Spencer Fung
Digital Store
15
17 16 NRF The Big Show I
2018
Spencer Fung
Betabrand (example)
• Improved consumer engagement through design process • 3 products completed funding with orders totaling $500k
17 NRF The Big Show I
2018
Spencer Fung
Betabrand (example) • Gilda Bag was 1000%+ crowdfunded, extremely successful launch • All digital samples, no physical
18 NRF The Big Show I
2018
Spencer Fung
Betabrand (example) Brand X
Traditional Model
15% Adoption
10 months
Inventory
20% Markdown
Now
70% Adoption
5.5 months
Crowdfunded
94% Sell thru
Future
Adoption per Crowdfund
2.5 months
Crowdfunded
94%+ Sell thru
19 NRF The Big Show I
2018
Spencer Fung
Creating the Supply Chain of the Future Sunil Shewakramani
February 2018