Li & Fung, Wal-Mart amend sourcing agreement
HTT Staff -- Home Textiles Today, 9/20/2012 11:21:47 AM
Hong Kong - Direct Sourcing Group (DSG), a subsidiary of global supply chain agency Li & Fung created in 2010 to service Wal-Mart Stores Inc., has amended its contract with the retail giant. Wal-Mart's option to acquire all shares of DSG was terminated in the change.
Under the new five-year agreement, DSG will continue to serve as the primary direct resource for Sam's Club in the United States and will continue to provide buying services for Walmart U.S. and some international Walmart markets on a category-specific basis, according to an announcement issued by Li & Fung's board of directors. The individual categories were not identified.
DSG through another of its trading subsidiaries will work with Walmart International to provide design, replenishment and other services beyond the scope of its buying agent role.
Li & Fung said Wal-Mart is now one of the DSG's largest customers.
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