Essay Example on the Drivers Causing Li & Fung Going Towards Digital Supply Chain

Introduction

The digital supply chain for Li & Fung was a result of four distinct driving forces. These driving forces include the anticipated internal changes in the organization, industrial changes, the macro-environmental changes, and the disruptive changes. The planned or anticipated internal changes in the organization as a digital supply chain motivator involved the installation of a great leader who would steer changes in the company. The selection of Spencer included critical analysis and examination to ensure that as a leader, who would implement organizational changes that would lead to positive development, the digital supply chain is one of them. The industrial changes acted as potential drivers at Li & Fung towards the digital supply chain in that the negative effects affecting companies such as the events at Foxconn, Rana Plaza and the rise in wage provided critical reflections for the company. Changes in the technological framework in the industry enhanced the implementation of the digital supply chain. The macro-environment changes include the business environment in the US and the European markets. In contrast, disruptive changes primarily consist of the advancement in technology, leading to the rise of e-commerce (Zheng 210).

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The Key Success Factors for Innovation and Digitization

The primary success factors at Li & Fung enhancing innovation and digitization includes the development of an efficient management system, implementation of technology and management of dispersed production, and exploiting the global supply chain through the use of technology. The company used these factors alongside the establishment of the four-essential research centres to increase speed and efficiency in its activities. Implementation of technology as a factor primarily involves pursuing a technological approach that applauds innovation and digitization. Additionally, consistent oversight on the significance of the application of technology and disperse production is a critical factor for innovation and digitization.

How Li & Fung Group Could Become More Lean and Agile in Future

Extensive research and innovation in an organization are critical for a company to make a rapid response to the turbulent and dynamic environments affecting the industry (Gijo 150). Li & Fung Group can employ research and innovation measures to remain relevant in the ever-changing markets. Research and innovation provide the organization with critical information on areas of the organization that requires changes. The organization can further employ lean management techniques such as understanding the customer needs and making slow but continuous changes towards providing the most desired customers' needs. Therefore, Li & Fung Group must work with a team of highly motivated staff involving technologically savvy individuals to enhance rapid changes in the organization.

Works Cited

Gijo, E. V., and Jiju Antony. "Application of Lean Six Sigma in IT support services-a case study." The TQM Journal (2019).

Zheng, Victor, and Siu-Lun Wong. "Competing for leadership and ownership: the Li & Fung Group's legendary and strategy." Journal of Entrepreneurship in Emerging Economies (2016).