… Hong Kong is the center of the garment outsourcing industry. Most of the companies located there own and run 70-294 factories across Asia that weave, cut and sew garments. But Li & Fung is a different kind of outsourcer… the 95-year-old trading house that once sold ceramics and fireworks overseas doesn’t own a stitch when it comes to making garments. No factories, no machines, no fabrics. Instead, Li & Fung deal only in information, relying on a far-flung network of more than 7,500 suppliers in 37 countries, from Madagascar to China to Guatemala. “There are no secrets in the actual manufacturing. I mean, a 70-431 shirt is a shirt,” says William Fung, the managing director. “We would rather build on something proprietary, like what information it takes to make that shirt faster or more efficiently.”
As an order comes in … Li & Fung uses personalized Web sites and e-mail to fine-tune specifications with the 70-536 customer. It then takes those instructions and feeds them into its intranet to find the right supplier of raw materials and the right factory for assembling the clothes.
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