The goal of effective supply chain management is "to gain a competitive advantage through the optimization of flows within the company". Hong Kong-listed company Li & Fung Ltd represents one of the world's best examples of achieving this goal. The company's financial history clearly tells this story. Just last year, L&F reported a 23% increase in profit attributable to shareholder ownership. In fact, over the past 14 years, L&F has experienced a consistent compound annual growth rate of 22%. Not bad results for a small family business founded in Guangzhou in 1906 trading silk and porcelain. In 1937, L&F moved its headquarters to one of the world's most efficient seaports, Hong Kong, a move that would have a fundamental impact on supply chain management. The L&F Group now has three main business groups in trading, retail and distribution. Garments make up the majority of L&F's business, including fashion accessories, furniture, gifts, crafts, home products, promotional items, toys, sporting goods and travel items. L&F is a leading supply chain management company. Its success over the past two decades has made it one of the leading centers of research and expertise in corporate supply chain optimization. Several case studies have been conducted on the company touting it as an ideal example of successful corporate training in supply chain management. So what gives L&F the edge in supply chain management? The Li & Fung Research Center explains that the company has seven principles that form the pillars of supply chain management. According to the research team the key is that the "supply chain must be flexible, agile, cost-effective and responsive. Nowadays it is more common for companies to collaborate in a global context where each of them focuses on their core competencies and outsources the rest." ." L&F has taken its core competency to the extreme by perfecting the science (and art) of outsourcing. The company follows the following principles to ensure it remains at the forefront of supply chain management theory and practice .• Be customer-centric and driven by market demand;• Focus on its core competencies and outsource non-core activities, in order to develop a positioning in the supply chain;• Develop a close risk- and profit-sharing relationship with business partners; • Design, implement, evaluate and continuously improve the workflow, physical flow, information flow and cash flow in the supply chain; • Adopt information technology to optimize the operation of the supply chain ;• Reduce production times and delivery cycles; E