Li & Fung ( Phil s.) Inc.
Li & Fung ( Phils.) Inc.
The specialist in the sourcing of high-volume, time-sensitive consumer goods with:
The specialist in the sourcing of high-volume, time-sensitive consumer goods with:
Li & Fung Trading GroupLi & Fung Trading Group
• Over 100 years of history
• Over 8,000 employees world-wide
• Over 100 years of history
• Over 8,000 employees world-wide
Li & Fung Trading MissionLi & Fung Trading Mission
To be the premier global consumer products trading company delivering
the Right product
at the Right price
at the Right time
To be the premier global consumer products trading company delivering
the RRightight product
at the RRightight price
at the RRightight time
TYPICAL CODE OF CONDUCT
1. EMPLOYMENT PRACTICES
• Wages and Benefits• Working Hours• Child Labor• Prison Labor/ Forced Labor• Discrimination• Disciplinary Practices
2. ETHICAL STANDARDS
3. ENVIRONMENTAL REQUIREMENTS
4. HEALTH AND SAFETY
5. LEGAL REQUIREMENTS6. SUBCONTRACTORS AND SUPPLIERS TO
VENDORS COMPLIANCE
7. CORRECTIVE ACTION
C o o r d in a te d G lo b a l N e tw o r k7 0 O f f ic e s in 4 0 C o u n t r ie s
C o o r d in a te d G lo b a l N e tw o r k7 0 O f f ic e s in 4 0 C o u n t r ie s
E u r o p e / M e d i te r r a n e a n(1 1 L o c a t io n s )
E u r o p e / M e d i te r r a n e a n(1 1 L o c a t io n s )
Is ta n b u lIs ta n b u l
C a ir oC a ir o
O p o r t oO p o r t o
L a L a S e u DS e u D ’’ u r g e l lu r g e l l
T u n isT u n isD e n iz l iD e n iz l i
Iz m irIz m irF lo r e n c eF lo r e n c e
T u r i nT u r i n
M a n c h e s te r ,M a n c h e s te r ,A m s te r d a mA m s te r d a m
M a u r it iu sM a u r it iu s
M a d a g a s c a rM a d a g a s c a r
D u r b a nD u r b a n
A fr ic a(4 L o c a t io n s )
A fr ic a(4 L o c a t io n s )
In d ia n S u b c o n t in e n t(1 1 L o c a t io n s )
In d ia n S u b c o n t in e n t(1 1 L o c a t io n s )
S o u th e a s t A s ia(9 L o c a t io n s )
S o u th e a s t A s ia(9 L o c a t io n s )
H o n d u r a sH o n d u r a s
G u a te m a laG u a te m a la
A m e r ic a s(9 L o c a t io n s )
A m e r ic a s(9 L o c a t io n s )
G r e a te r C h in a & N o r th A s ia(2 1 L o c a t io n s )
G r e a te r C h in a & N o r th A s ia(2 1 L o c a t io n s )
SOCIAL COMPLIANCE/CLASSIFICATION OF CUSTOMER
Depending on the customer requirement towards social compliance as well as performing our due diligence towards Li & Fung, each customer will be classified as follows:
LEVEL 3 CUSTOMERCustomer that requires 3rd party auditing or that have their own
requirements.
LEVEL 2 CUSTOMER Customer that does not require any 3rd party auditing and is reliant
on Li & Fung to perform our due diligence
LEVEL 1 CUSTOMERCustomer that does not require any form of compliance. In this
case, we apply and treat them as LEVEL 2 Customer.
SUCCESSFUL VENDOR/SUPPLIER MUST MEET THE FOLLOWING COMPLIANCE REQUIREMENTS
1. SOCIAL COMPLIANCE
2. TECHNICAL COMPLIANCE
3.COUNTRY OF ORIGIN COMPLIANCE
4. C-TPAT COMPLIANCE (FOREXPORT TO US ONLY)
C-TPAT ( Customs Trade Partnership Against Terrorism) is a US Customs initiative to strengthen security of the overall supply chain.
SOCIAL COMPLIANCE ISSUES
• Wages and Benefits (minimum wage, overtime, night time pay, SSS, Medicare and Pag-ibig coverage.• Working Hours (excessive overtime, more than 60 hrs per week work schedule)• Child Labor (employing children below 14 years old• Prison Labor / Force Labor• Discrimination• Disciplinary Pratices / harassment
SOCIAL COMPLIANCE RATINGS
1. NI - No Issues2. CI - Continuous Improvement3. IA - Immediate Action4. ZT - Zero Tolerance (Blacklist)
TECHNICAL COMPLIANCE ISSUES
• Housekeeping and Maintenance of Equipments• Pre-Production Measures• Quality Assurance Measures• Product Integrity
Mandatory Requirements of passing Technical Compliance• Broken/Used Needle Policy (Garments)• Sharp Tool Control
TECHNICAL COMPLIANCE ISSUES
Rating scale of 0 to 100Minimun Passing Score is 40
COUNTRY OF ORIGIN ISSUESLi & Fung takes a very serious view towards Country of Origin (C/O)
Compliance and Trans-shipments Laws, it requires ALL vendors and factories with the Country of Origin Rules
COUNTRY OF ORIGIN ISSUESRating is similar to Social Compliance, but eventually be
classified either as NI(No Issues) or ZT (Zero tolerance)
C-TPAT COMPLIANCE ISSUES OR KEY AREAS OF EVALUATION
a. Physical Securityb. Access Controlc. Procedural Securityd. Information Technology Securitye. Personnel Securityf. Security Training and Awarenessg. Conveyance & Container Securityh. Business partners
C-TPAT COMPLIANCE ISSUES OR KEY AREAS OF EVALUATION:
Scoring System classified as:Grade A - 81% to 100%Grade B - 71% to 80%Grade C - 61% to 70%Unacceptable - Below 60%
Ceremonial turn over of relief goods.
The representatives together with General Bataoil.
RELIEF & MEDICAL MISSIONRELIEF & MEDICAL MISSIONRECIPIENT: NAVOTAS FIRE VICTIMSRECIPIENT: NAVOTAS FIRE VICTIMS
RELIEF & MEDICAL MISSIONRELIEF & MEDICAL MISSIONRECIPIENT: NAVOTAS FIRE VICTIMSRECIPIENT: NAVOTAS FIRE VICTIMS
The donations being turned over to the staff of The Army Reserve and Marine Command.
OUTREACH PROGRAM FOR OUTREACH PROGRAM FOR TYPHOON REMING VICTIMS IN TYPHOON REMING VICTIMS IN
BICOLBICOL
Mr. Eliseo C. MirandaVice President / Branch Manager
Li & Fung (Phils.) Inc.
&
FOBAP PRESIDENT