Analysts felt that Li & Fung, with its sound global sourcing network and strong-financials (US$ 270 mn in cash reserves) was poised to establish itself as a strong playerin#the B2Bmarket place. Commenting on the extent of cost reduction that Li & Fung could provide to small and medium size customers, Barnett, a Goldman Sachs' analyst, said, "A large company that uses Li & Fung typically pays 4% to 12% of the value of the order [because of economies,of scale]. It's about 30% for a small company.