Li & Fung — CFO Supply Chain Intelligence

Cost vs Benchmark

+8.4%

▲ Widening · was +5.1% Q4

Above market avg · widening since Oct

Suppliers at Risk

▲ +2 · was 1 last quarter

Jiangsu Xinhua critical · 2 on watch

Opportunity Identified

€3.2M

▲ +€400K · vs €2.8M Q4

Cost recovery + revenue · 9 signals

SCF Utilization

67%

▲ +5pts · vs Q4 improving

€3.9M of €5.8M facility · View SCF →

✨

This Week: 2 critical actions — €840K at risk · 4 items this month · 3 strategic opportunities — €590K+ potential · Cotton tailwind & Vietnam capacity available now

📊 Charts & Intelligence

Click any signal to see details & action

Demand Misalignment — PO vs Market

Your PO growth % vs market retail sales growth % · QoQ

Seasonal Deco

+18% -11%

Home Textile

+2% +24%

Bedding

+12% +8%

Activewear

-5% -3%

Kids Apparel

+8% +6%

Your PO

Market growing

Market declining

🔴 Critical ⚠ Warning

€730K

Two-Sided Demand Problem

Seasonal Deco: PO +18% into declining market → €420K overstock risk. Home Textile: market +24% while your PO flat → €310K missed.

L&F cross-buyer data confirms both signals

Seasonal Deco PO

+18% QoQ

EU Retail Sales

-11% YoY

Home Textile Mkt

+24% YoY

Your HT PO

Flat 4 months

🔒 L&F Cross-Buyer Intelligence

4 comparable EU buyers already cut Seasonal Deco POs avg -14% for H2. L&F sell-through confirms category-wide softening. Two major retailers shifted budget to Home Textile — the same category you are flat on. 3 peers increased Home Textile POs 15-30% in Q1.

Supplier Performance Score — Risk Tracking

Performance score /100 with trend · L&F managed suppliers

Jiangsu Xinhua Textiles76/100

↓ from 91 · OTD -16pts · quality ×3 · cross-buyer stress

Dhaka Weave Industries82/100

↓ capacity at 91% · Q3 gap +15% · 3 single-source SKUs

Guangdong Fabric Co.88/100

→ OEKO-TEX cert expires 47 days · EU import risk

Shenzhen Textile Group91/100

↑ stable

Vietnam Fabric Works94/100

↑ strong · preferred backup

Others (avg)93/100

→ stable

🔴 Critical ⚠ x2 Watch

3 Suppliers

Operational Distress & Capacity Risk Escalating

Jiangsu Xinhua: score 76 ↓ from 91, OTD ↓16pts, quality ×3. Cross-buyer payment delays confirm systemic distress. Dhaka Weave: Q3 gap cannot be met.

Pattern across multiple L&F buyers confirmed

Jiangsu Score

76 ↓ from 91

OTD%

94% → 78%

Quality Rejection

1.2% → 3.8%

Dhaka Capacity

91% — maxed

🔒 L&F Cross-Buyer Intelligence

Jiangsu Xinhua: Payment delays observed across 3 other L&F buyers this quarter. Quality claim filed by a separate buyer — same defect type. Pattern across multiple accounts confirms operational distress, not isolated. Dhaka Weave also at capacity for 2 other L&F buyers in Q3.

Cost vs Market Benchmark

Your cost per unit % above / below market avg · by category

Bedding Linen+8.4%

Seasonal Deco+5.2%

Kids Apparel+2.8%

Activewear-3.1%

Home Textile-1.5%

Above market (overpaying)

Below market (advantage)

⚠ Act This Month

€180K

Bedding Linen Cost Gap Widening

+8.4% above market avg (€3.47 vs €3.20). Gap widening since Oct. Contract-specific — market prices have not risen. Renegotiation window open.

Comparable L&F buyers paying €3.18-3.24

Your Cost/unit

€3.47 (Bedding)

Market Average

€3.20 (L&F)

Gap Trend

+3pts since Oct

Annual Recovery

€180K

🔒 L&F Cross-Buyer Intelligence

Comparable L&F buyers paying €3.18-€3.24 for same spec and origin. Gap is contract-specific — market prices have NOT risen. Renegotiation window open now. April contract cycle.

Raw Material Cost Index — 12-Month Trend

Commodity index rebased 100 = Apr 2025 · vs your contract

Cotton (Cotlook A)

Linen / Flax

Polyester (PTA)

Your contract

⚠ Act This Month▲ Cost pressure

€140K

Cotton Unrecovered & Linen Rising

Cotton -15% but your fixed contract unchanged — €140K unrecovered. Linen +22%: 3 suppliers on floating contracts will pass through to H2 POs.

L&F confirms cotton decline sustained, not seasonal

Cotton index

-15% (82¢/lb)

Your contract

Fixed — unchanged

Linen / Flax

+22% ↑

Polyester (PTA)

+12% ↑

🔒 L&F Cross-Buyer Intelligence

3 peer buyers renegotiated cotton contracts in 60 days — avg savings 9-12%. L&F confirms decline sustained. Linen price increase being absorbed by buyers through Q3 advance booking. Further 5% cotton decline forecast Q2.

Shipment Cost — Your Rate vs L&F Network Avg

Per-unit freight cost by lane · USD equivalent

CN → EU

Yours

€4.20

L&F Avg

€3.45

BD → EU

Yours

€2.80

L&F Avg

€2.65

VN → EU

Yours

€3.10

L&F Avg

€2.95

Your rate

L&F network avg

💡 Opportunity

€95K/yr

CN→EU Freight 22% Above Network Average

Your CN→EU rate €4.20/unit vs L&F avg €3.45. Not market-wide — other L&F buyers on same lane pay significantly less. Consolidation program available.

L&F consolidation program can close this gap

CN→EU Your rate

€4.20/unit

L&F Avg same lane

€3.45/unit

Gap

+22% above peers

Annual excess

€95K at volume

🔒 L&F Cross-Buyer Intelligence

L&F volume consolidation program available on CN→EU lane — est. rate €3.30-€3.50 for your volume profile. BD and VN lanes are within range. CN gap is contract/carrier specific, not a market condition.

Geographic Concentration — You vs Peer Avg

Sourcing spend % by country · peer = comparable L&F buyers same category

China

Yours

68%

Peers

41%

Bangladesh

Yours

14%

Peers

16%

Vietnam

Yours

Peers

22%

India

Yours

Peers

Other

Yours

Peers

Your %

Peer avg %

⚠ Strategic Risk💡 Opportunity

€380K/yr

China 68% — 27pts Above Peer Benchmark

Tariff excess vs peers: €380K/yr. Vietnam at 0% vs peer 22%. 2 qualified L&F factories available, no onboarding cost. EU CBAM from 2026.

Peers reduced China 15pp since 2024 — you unchanged

Your China %

68% of spend

Peer avg

41%

Tariff excess/yr

~€380K vs peers

VN factories ready

2 (no cost)

🔒 L&F Cross-Buyer Intelligence

Comparable buyers reduced China share 15pp since 2024 trade tensions. You have not moved. EU CBAM applies to your China-origin categories from 2026. L&F has 2 pre-vetted Vietnam factories matching your spec — peers who shifted 15% are now realising savings.

⚡ Quick Actions

9 signals · sorted by urgency & impact

Act Now — 2 signals · €840K at risk

Jiangsu Xinhua — Supplier Operational Distress

OTD -16pts · quality x3 · cross-buyer payment delays · act before Q2 order lock

€420K risk

Seasonal Deco — Overstock Building Fast

PO +18% · market -11% · 3 quarters misaligned · before Q2 PO cycle

€420K risk

Act This Month — 4 signals · €725K exposure

Bedding Linen — Cost Gap Widening

€3.47 vs €3.20 market avg · April contract window open

€180K recoverable

Cotton — Commodity Contract Divergence

Cotlook A -15% · fixed contract unchanged · renewal in 6 weeks

€140K unrecovered

Dhaka Weave — Q3 Capacity Cannot Be Met

91% utilized · +15% uplift needed · 3 SKUs single-source · Q3 lock 5 weeks

Supply risk

OEKO-TEX Cert Expiry — Guangdong Fabric

47 days · 6 SKU lines · EU customs hold if lapsed

€210K at risk

Strategic Opportunities — 3 signals · €590K+ potential

Vietnam Diversification

2 L&F factories ready · 12% cost advantage · no onboarding cost

€220K/yr

Home Textile — Missing a Market Surge

Market +24% · your PO flat 4 months · capacity available now

~€310K potential

CN Freight Consolidation

22% above L&F avg · consolidation program available

€95K/yr

🌎 Market Intelligence

Commodity · freight · regulatory · FX

🌾 Commodity

−15%

Cotton (Cotlook A) at 82¢/lb — Sustained Decline

USDA Q2 confirms surplus maintained through Q3. Your fixed contract has not captured this — €140K unrecovered. Renewal window opens in 6 weeks.

▶ Review price clause before April 30

🚢 Freight

−8%

CN→EU Container Rates Stabilising at $2,200/40ft

Rates -8% MoM, stabilising. L&F network avg now €3.45/unit on CN→EU. Your contract at €4.20 is 22% above network avg — consolidation available.

▶ Explore consolidation to close €95K gap

📋 Regulatory

2027

EU CSRD — Scope 3 Supply Chain Mandatory Q1 2027

Scope 3 upstream emissions data mandatory for large EU buyers. 6 current suppliers do not yet have compliant ESG data. 9-month lead time recommended.

▶ ESG supplier assessment within Q2

💱 FX

1.08→1.12

USD/EUR — USD Weakening 3.7% Since January

Favorable for EUR buyers with USD-invoiced suppliers. However 38% of your contracts USD-denominated, no FX hedge. Net ~€95K favorable Q2 but Q3+ risk rising.

▶ Review FX hedge strategy for H2

🏆 Competitor & Peer Movements

Via L&F network — anonymised buyer data

EU Home Goods · Large Retailer

🏭

Major EU home goods buyer announced 20% China sourcing reduction — accelerating Vietnam & India transition

Confirmed in Q1 2026 earnings call. Buyer confirmed 3-year plan to reduce China below 45%. Already onboarded 4 Vietnam factories via L&F. First VN shipments Q2 2026. Now realising 11% unit cost advantage on shifted categories.

Confirmed via L&F · March 2026 · Relevant to: your geo concentration signal

Bangladesh · Wage Accord

💰

Bangladesh minimum wage +8% effective April 1 — cost pass-through expected H2 2026

14 key factories in your network confirmed participation. Expect 3-5% unit cost increase on BD-sourced categories in H2 PO negotiations. Activewear and bedding most exposed. Factor into contract planning now.

Accord signed Jan 2026 · Active Apr 1 · Relevant to: Bedding & Activewear cost outlook

EU Fast Fashion · 2 Peers

🛍️

Two peers increased Home Textile POs +18–25% in Q1 — citing post-renovation demand wave

Both peers moved early — secured factory capacity for Q2-Q3. You are flat on POs in this category. Factory allocation for Q3 closing within 30 days. L&F data shows 2 more quarters of category growth likely.

L&F sell-through data · Apr 2026 · Relevant to: your Home Textile purchasing plan

✓

Mar 18

SCF line review submitted — pending approval

✓

Mar 15

Dual-source activated for Dhaka Weave — 40% complete

✓

Mar 12

Factory audit requested for Jiangsu Xinhua — due May 22

✓

Mar 5

Renegotiation triggered on Bedding Linen — €85K saved