Li&Fung Supplier Selection Research

With the development of globalization, the global resources have been further optimized. The suppliers, as the start point of supply chain, play the important role to keep the core competitiveness of enterprises. There are huge amount of textile and garment suppliers, most of them are small or middle size companies with only few dozens of employees. The garment companies have huge difference on the operation scale, management skill, technical. It has important theoretical and practical significance for the multinational corporations to establish the appropriate supplier evaluation system and choose the suppliers which are suit for different brands and requirement.This article adopt the method of theory with practice. First, elaborate both the domestic and foreign research on the supplier selection, introduce relevant concepts on supply chain and supplier management.Second, introduce the history and development of Li&Fung Corporation, as well as the current situation on evaluating and supplier selection, analyze the problem and reason in the supplier selection system. Third, supplier evaluation index system was confirmed by questionnaire survey and combined the existing problem in Li&Fung and the characteristics of textile and garment industry, build supplier selection model by fuzzy comprehensive evaluation method (FEC). Finally, propose supplier selection stategy according to Li&Fung’s current situation and the characteristics of textile and garment industry which include supplier database building, supplier performance appraisal implementation and level-to-level administration.