Recently launched LFX to focus on transforming supply chain sustainability

With the retail industry rapidly evolving based on advances in digital technologies and increasingly complex consumer demands, Li & Fung Limited, a leading, global supply chain orchestrator, has launched LFX, a new company, to capitalize on new digital opportunities to transform the retail industry and enabling supply chain sustainability.

LFX’s business model is centered on being an incubation, investment, and operating platform that provides digital solutions and digitally enabled services throughout the end-to-end consumer goods supply chain.

The company will launch and operate digital ventures that will provide answers to brands, retailers, e-commerce companies, C2M (consumer-to-manufacturer) players, and manufacturers. Its solutions are designed to address all aspects of the value chain, including trade, information, and capital flows.

Its initial ventures will focus on 3D digital product development and supply chain FinTech. In parallel, a venture capital arm has been formed to identify and invest in technologies that transform global retailing, supply chain, and logistics.

As an offshoot of Li & Fung, LFX brings knowledge, hands-on experience spanning 100+ years, and relationships across the global supply chain.

According to the company, it will have the unique ability and insights to identify and bring to market digital technologies that will have an immediate impact; all this is done while also knowing what needs to happen next to realize the sustainable supply chain of the future, at a time when digital technologies and complex consumer demands are shaping the retail industry.

“We have established LFX as a separate company to build on Li & Fung’s supply chain knowledge to bring new ways of thinking and revolutionize how we create, make and sell products. Sustainable consumption starts with supply chain digitalization and LFX is forming an ecosystem that connects the innovations, people and companies committed to accelerating digitalization and transforming the retail industry,” Spencer Fung, Group Executive Chairman, Li & Fung and LFX said.

Ed Lam, CFO and Executive Committee Member of Li & Fung, has been named CEO of the newly found company.

“Roughly 40 million tons of textile waste goes to landfill every year, and it is estimated that just 60 percent of garments were sold at full price. Sustainable consumption requires behavioral shifts, and it starts with the supply chain,” said Lam.

“Our goal at LFX is to reduce the environmental impact of our industry and promote sustainable consumption. We believe that by merging real-world industry experience with new ideas that entrepreneurs and technologists bring, we get practical innovations the industry will embrace.”