World Duty Free Group has chosen the logistics division of Hong Kong headquartered multinational, Li & Fung Limited, as its logistics partner for the Asia Pacific region, with a logistics hub to be established in Singapore.

 

The two companies have signed a formal partnership agreement, which will see LF providing a menu of logistics services on an exclusive basis for WDFG with the main aim of the deal, being to support business development in the region.

 

The Singapore logistics hub will also be used as part of WDFG’s global supply network and will support its existing operations in Sri Lanka and India. WDFG says that in choosing Li & Fung it had sought “a logistics partner that could deliver the same levels of commitment, responsiveness and professionalism, as those demanded of its own teams”.

 

“We have made no secret of our ambitions to expand into this region and it is important that we have the foundations in place first,” says Justin Suter (below right), WDFG’s Global Head of Supply Chain and Logistics. “Culturally, we believe there is a strong fit between WDFG and LF Logistics, and their flexibility and professionalism gave us confidence that we can work well together.”

 

Thean Siak Sin, Senior Vice President at LF Logistics, adds: “We look forward to using the strength and depth of our logistics skills and bonded warehousing experience, to support WDFG in their growth ambitions.”

 

Li & Fung Limited is a leader in consumer goods design, development, sourcing and distribution, however it saw its core operating profit fall by -42.0% to $511m in 2012, blamed on the restructuring costs of LF USA’s business and a reduction in the number of brands distributed in the US. The company manages the supply chain for retailers and brands worldwide with over 300 offices and distribution centres in more than 40 economies spanning the Americas, Europe, Africa and Asia.