Li & Fung Limited

Improve Competitiveness From Up the Supply Chain

Li & Fung Limited (Li & Fung) is a leading consumer goods design, development, sourcing, and logistics company serving major retailers and brands around the world.

Li & Fung has an extensive network of suppliers for producing high-quality garments. However, they realized that they currently provide inadequate supervision and quality control to the suppliers, that the suppliers adopt poor production planning and processes, which lowered the efficiency of Li & Fung as a whole.

In view of the problem, Li & Fung consulted TQM to assist suppliers’ improvements for the sake of the company’s development.

Project Scope

  • Develop benchmarking assessment mechanism for Li & Fung to manage the suppliers regularly
  • Advised each supplier on the dimensions to improve quality, and provided suggestions on how to improve quality along various dimensions with IQC, IPQC, QA operations
  • Improve production flows
  • Establish comprehensive KPI and information management systems
  • Actively enforce 5S management
  • Provide staff training on quality awareness and technical skills


  • Reduced the defective rate in suppliers’ products
  • Achieved substantial improvements in quality, productivity, and delivery performances from suppliers
  • Boosted competitiveness of both suppliers and Li & Fung
TQM's DIrector, Ir Dr Aaron TONG (Centre, Front Row) presented the results.