IDS Logistics (subsidiary of Li & Fung) acquires US Impac Logistics
By SwizStick • Dec 6th, 2006 • Category: Contract Logistics, Misc Logistics, QuickNewsVia AllRoadsLeadtoChina:
It is a sign of things to come, and for the Li & Fung Group (China’s largest trading, sourcing, and outsourced manufacturing company) there will be huge benefits all over the place from this deal on the cost and revenue side of the equation.
Outside of the savings that will result from the integrated network, Li & Fung as a group will be able to purchase raw materials on behalf of clients, manage the manufacturing, and then management the movement of goods from manufacturing site to retailer…. potentially on a massive scale.
Li & Fung, already a behemoth in the trading world, is positioning itself to be a one-stop-outsourcing shop to their clients. Need to source product from Asia? No problem, we can help. Need help with compliance and manufacturing issues? No problem, we can help. Need help getting the product from point A to point B? No problem, we can help.
It will be interesting to see how many of their clients are willing to put all their eggs in one basket - I doubt many will do so, but that’s beside the point. Li & Fung is expanding their service offerings, I am sure some clients will only use them for trading services while some clients only use them for logistics services. And of course IDS Logistics is a subsidiary of Li & Fung, they operate under a different name/structure. But it’s still interesting to see Li & Fung’s continued expansion as one of the largest trade services providers in Asia.
Stumble it!
Related Posts:
SwizStick is Co-Contributor
Email this author | All posts by SwizStick
© 2008