Li & FungSCM Intelligence
March 19, 2026 · Fiscal Q1 2026
🔴 2 Critical ⚠ 4 Warnings Live
Cost vs Benchmark
+8.4%
Widening gap
Bedding +8.4% S.Deco +3.8% H.Text -1.7% Towels -6.3% DIY -4.6%
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Payments Due (30 Days)
€745K
4 countries · 6 POs
🇨🇳 China €420K 🇧🇩 BD €185K 🇮🇳 India €95K 🇻🇳 Vietnam €45K
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SCF Utilization
67%
€1.9M headroom remaining
80% Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 67%
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Suppliers at Risk
3 / 9
1 critical · 2 watch · 6 ok
3/9 at risk
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PO vs Market
2
1 overbuying · 1 opportunity
S.Deco Over H.Text Opp Bedding Watch Towels DIY
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Geo Concentration
68%
China · +27pts vs peers
CN 68% BD 18% VN IN 14%
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ESG Exposure
€2.4M
3 active regulations · 6 suppliers at risk
UFLPA €890K Act now CSRD €1.1M Q1 2027 CBAM €380K Q2 2026
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CBAM Early Warning
€420K
Est. annual tariff · 5 China suppliers
€180K Bedding €120K H.Text €80K DIY €40K S.Deco
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Non-FOB Cost Layer
€297K/qtr
+€77K above peer benchmark
Freight €105K Tariff/CBAM €95K Audit/ESG €52K Penalty €45K
Bars = yours · Green line = peer benchmark
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📡 Market & Competitor Intelligence

Commodity
−15%
Cotton at 82¢/lb — Sustained Decline
USDA Q2 confirms surplus. Your fixed contract unrecovered — €140K to date.
€140K
Review →
Freight
−8%
CN→EU Rates Stabilising at $2,200/40ft
Rates down 8% MoM. Your contract at €4.20 is 22% above L&F avg €3.45.
€95K opp
Explore →
Regulatory
Q1 2027
EU CSRD Scope 3 Mandatory — 6 Suppliers Non-Compliant
Upstream emissions data required. 9-month lead time recommended — start now.
6 suppl.
Assess →
FX
+3.7%
USD Weakening vs EUR — 38% of Contracts Exposed
Q2 favorable ~€95K. Q3+ risk rising without hedge. H2 exposure building.
€95K Q2
Hedge →
Peer · Urgent
−20%
Major EU buyer cutting China 20% — Vietnam & India accelerating
Q1 2026 earnings confirmed. 3-yr plan to reduce below 45%. You remain at 68%.
Geo risk
View Geo →
Peer · Watch
+8%
Bangladesh Minimum Wage +8% — Cost Pass-Through H2 2026
14 factories confirmed. 3–5% unit cost increase on BD-sourced categories H2.
BD cost
Cost →
Peer · Closing
+21%
2 Peers Secured Home Textile Q2–Q3 Capacity — You Remain Flat
Factory allocation windows closing in 30 days. Peers locked +18–25% PO uplift.
30 days
PO →
Peer · Accel
+25%
5 EU Peers Shifting 20–30% to Vietnam & Morocco Nearshore
Reporting 8–12% landed cost savings. CBAM pressure accelerating shift. You: 0%.
Nearshore
Roadmap →
Total Suppliers
9
L&F managed · active
Critical Risk
1
Jiangsu Xinhua Textiles
High Risk
2
Require monitoring
Total Annual Spend
€163M
Across 9 active suppliers

🌍 Global Supplier Map

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Low High Critical

Supplier Directory

Click supplier name to view full strategic profile · factory matrix · audit photos
SupplierCountryAnnual Spend CapacityRiskCertificates
Supplier
Supplier Name
Country · Category
Categories Tracked
5
Q1 2026
Misaligned
2
Seasonal Deco + H.Text
Overstock Risk
€420K
Seasonal Deco
Missed Opportunity
€310K
Home Textile

📈 Demand Signals

PO vs market growth · L&F retail sell-through overlay

PO Change vs Market Growth (%)

Your PO % change vs market retail sales YoY · Q1 2026
Seasonal Deco 18% Home Textile 2% Bedding -3% Towels 5% DIY Tools 12% Yours Peer avg
Blue = Your PO · Green/Red = Market direction

Category Signals

Status · impact · recommended action
CategoryYour POMarketSignalImpact
Seasonal Deco↑18%↓11%Overbuying€420K risk
Home TextileFlat↑24%Opportunity€310K opp
Bedding↓3%↑8%WatchMonitor
Towels↑5%↑4%Aligned
DIY Tools↑12%↑11%Aligned
⚠ Critical — Seasonal Deco
Buying into a structurally declining category for 3 consecutive quarters. Peer buyers reducing POs 8–15%. Inventory days up from 42 to 58. Each quarter of inaction compounds overstock risk.

🔒 L&F Cross-Buyer Signal
L&F retail sell-through confirms Seasonal Deco category-wide structural decline. Home Textile post-renovation surge has 2 more quarters of growth momentum. Factory capacity for H.Textile is filling — peers have already moved.
Overall Cost Gap
+8.4%
vs L&F benchmark
Recoverable
€340K
Renegotiation potential
Above-Benchmark
2 of 5
Bedding + S.Deco
Contract Renewal
Q4 2026
Key window for Bedding

💰 Cost & Pricing

Category cost vs L&F peer benchmark · contract analysis

Cost Gap vs Benchmark by Category

% above (+) or below (−) L&F market benchmark · Q1 2026
Bedding +8.4% Seasonal Deco +3.8% Home Textile -1.7% Towels -6.3% DIY Tools -4.6%

Benchmark Detail

Your unit cost vs L&F comparable buyer average
CategoryYoursMkt AvgGapStatus
Bedding Linen€3.47/unit€3.20+8.4%Renegotiate
Seasonal Deco€4.12/unit€3.97+3.8%Monitor
Home Textile€2.85/unit€2.90-1.7%Below mkt
Towels€1.89/unit€2.02-6.3%Below mkt
DIY Tools€5.21/unit€5.46-4.6%Below mkt
💡 Commodity Update — Cotton
Cotlook A Index ↓15% since January 2026. Your Bedding Linen fixed contract has not adjusted. Unrecovered gap to date: €140K. Contract renews Sep 2026 — mid-term price clause review may allow reset before then.
🔒 L&F Cross-Buyer Signal
Comparable L&F buyers pay €3.18–€3.24 for Bedding Linen — same spec and origin. Gap is contract-specific, not market-driven. Renegotiation window open now. Cotton input cost declined 8% — not passed through in current contracts.
Cotton Index
−15%
Sustained decline · buy opportunity
Linen/Flax Index
+22%
Sharp rise · floating contract risk
Polyester
+12%
Moderate rise · watch
Freight Rate
−8% MoM
$2,200/40ft · near stable

🚢 RM & Freight

Raw material indices + freight rate · L&F market data

Commodity Index — Oct 2025 to Mar 2026

Base 100 = Oct 2025 · Cotlook A (cotton) · Flax index (linen) · PTA (polyester)
128 111 94 76 Oct'25 Nov Dec Jan'26 Feb Mar 85 122 112 Cotton Linen/Flax Polyester

Freight Rate Comparison

CN→EU 40ft container · Q1 2026
Your contract rate €4.20/unit
L&F network avg €3.45/unit
Gap: €0.75/unit · 22% above market
Est. annual saving via L&F consolidation: €95K

Supplier Exposure to Rising Linen

Floating contracts will pass through +22% linen price increase
SupplierContractCategoryRisk
Jiangsu XinhuaFloatingBedding LinenHigh
Shanghai CottonFloatingHome TextileMedium
Guangdong FabricFixed Q2TowelsLow
🔒 L&F Cross-Buyer Signal
3 suppliers on floating linen contracts will pass through the +22% price increase in H2 PO negotiations. Cotton decline (-15%) not passed through — fixed contracts expiring Sep 2026. L&F consolidation program available for freight — peers on program paying €3.38/unit avg.
China Exposure
68%
Single-point risk — reduce to <50%
EU Revenue Share
48%
Largest market · P1 priority
APAC Risk Score
81/100
High risk · only 9% revenue
Diversification
18%
Non-China target: 40% by 2027

🌍 Geo Risk

Supply concentration vs revenue exposure · country risk trinity

Supplier Distribution by EUR Spend

% of total annual procurement spend by country
68% China China 68% Bangladesh 18% India 14% Vietnam 0%
⚠ Concentration Risk
China at 68% vs peer avg 41% — 27pts above benchmark. Annual tariff excess vs peers: €380K. Vietnam allocation: 0% vs peer avg 22%.

Revenue by Market vs Risk Score

Revenue share · compliance priority · EU+US = 79% of revenue
MarketPriorityRev %Risk ScoreCompliance Cost
EUP1
48%
72 / 100€2.4M
USP1
31%
58 / 100€1.8M
UKP2
12%
45 / 100€0.6M
APACP2
9%
81 / 100€0.3M
EU+US = 79% of revenue — compliance investment priority

Country Risk Trinity

Wage inflation · FX delta · Geopolitical · Combined risk assessment
CountryWage InflationFX DeltaGeopoliticalRiskYour Allocation
🇨🇳 China+7.1%+5.1% unfavHighCritical68%
🇧🇩 Bangladesh+8.0%+2.2% stblLowMedium18%
🇮🇳 India+4.2%−0.8% favLowLow14%
🇻🇳 Vietnam+3.8%−1.2% favLowLow0%
🇹🇷 Turkey+18.4%+1.8% stblMediumMedium0%
🔒 L&F Cross-Buyer Signal
2 Vietnam factories pre-qualified for your Bedding and Towel categories — no onboarding cost, comparable lead time (±3 days). Peers who shifted 15% in 2024 are realising savings. EU CBAM financial phase started Q2 2026 — China exposure at 68% generating €420K/yr tariff excess.
Facility Limit
€5.8M
4 enrolled suppliers
Utilized
€3.9M · 67%
▲ +5pts vs Q4
Available
€1.9M
Headroom remaining
Payments Due
€745K
Next 30 days · 4 countries

🏦 SCF & Financing

Supply chain finance facility · utilization · payment schedule

Utilization Trend — Q1 2025 to Q1 2026

Stacked: utilized (blue) + headroom (grey) · Line: utilization % · Caution at 80%
80% caution Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 67%
⚠ Headroom Watch
At current growth rate (+5pts/quarter), facility hits 80% caution threshold Q3 2026. Consider requesting limit increase now or restructuring utilization ahead of Q2 peak payments.

Enrolled Suppliers

Active in SCF program · rates · utilized amounts
SupplierCountryUtilizedRateStatus
Jiangsu Xinhua🇨🇳€1.2M2.8%Active
Dhaka Weave🇧🇩€0.8M3.1%Active
Mumbai Fabrics🇮🇳€1.1M2.9%Active
Hanoi Textiles🇻🇳€0.8M3.3%Active
Total€3.9M3.0% avg

Payment Schedule — Next 30 Days

PO-based payment due dates by country
CountrySuppliersAmountDue InSCF Option
🇨🇳 China3€420K18 daysAvailable
🇧🇩 Bangladesh1€185K22 daysAvailable
🇮🇳 India1€95K28 daysAvailable
🇻🇳 Vietnam1€45K30 daysAvailable
Total6 POs€745K
💡 Enrolling China POs (€420K) in SCF can extend payment 30–60 days, freeing cashflow while maintaining supplier relationship.
Active POs
847
8 stalled >10 days
Total PO Value
€42M
Deployed this quarter
On-Time Delivery
94%
▲ vs 91% Q4
Stalled POs
8
>10 days no update

📦 Procurement

PO pipeline · channel mix · delivery performance

Procurement Channel Mix

% of spend by channel type · Q1 2026
Importer 52% Agent 31% Consignment 17%
Importer (52%): Highest compliance visibility, best audit trail.
Agent (31%): Faster but less traceability. Monitor closely for UFLPA compliance.
Consignment (17%): Higher risk — inventory held off-balance sheet. Flag for risk review.

PO Pipeline by Status

847 active POs across 9 suppliers
StatusCountValueAvg AgeAction
Confirmed412€18.2M8 days
In Production287€14.8M22 daysTrack
Pending140€7.1M5 daysChase
Stalled8€1.9M14 daysUrgent
⚠ 8 Stalled POs — €1.9M at risk
3 from Jiangsu Xinhua (aligns with operational distress signal). Escalation required within 48h or Q3 delivery is compromised.

Category Spend Breakdown

Q1 2026 procurement by category
CategoryPO Value% of TotalOTD%Cost Status
Bedding€11.2M27%88%+8.4% above mkt
Home Textile€9.8M23%96%Below mkt
Towels€7.4M18%95%Below mkt
Seasonal Deco€8.1M19%92%+3.8% above mkt
DIY Tools€5.5M13%97%Below mkt

📡 Market Intelligence

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