SHEIN, as a highly-watched fashion e-commerce platform, has been criticized for its supply chain management despite its remarkable success in the market. The following are the defects of SHEIN’s supply chain and possible improvement directions:
1. Rough supplier management model.
SHEIN’s supplier management is relatively extensive and mainly driven by orders. This model seems to be somewhat powerless in dealing with small batches and diversified orders. Due to the large order volume and the wide variety of styles involved, suppliers often need to adjust production plans at any time according to market demand. This need for flexibility makes it difficult for SHEIN’s supply chain to establish a clear and efficient management model.
To improve this problem, SHEIN can consider establishing a more flexible cooperation model, establishing a long-term strategic partnership with suppliers, jointly planning production plans, and reducing the sense of urgency driven by orders. This will not only improve the efficiency of the supply chain, but also help improve product quality and innovation.
2. The transmission of pressure on suppliers by strong influence.
SHEIN has a strong market influence in the fashion e-commerce industry, which is undoubtedly part of its success. However, for suppliers, this also brings huge pressure. Some suppliers have reported that in order to meet SHEIN’s delivery requirements, they often have to work overtime and even have to give up orders from other customers.
One direction for improvement is for SHEIN to communicate more openly and transparently with suppliers. Establishing a more fair cooperation mechanism, balancing the interests of both parties, and reducing the workload of suppliers will help establish a long-term sustainable cooperative relationship. In addition, SHEIN can also consider optimizing the supply chain and improving production efficiency to reduce the pressure on suppliers.
3. The priorities of supplier management are not balanced enough.
In SHEIN’s supplier management priority ranking, cost, delivery, and quality are considered to be the top three, while supplier relationships and supplier growth are relatively low. Such a ranking may cause some suppliers to feel neglected, thereby reducing their enthusiasm for cooperation.
In order to improve this problem, SHEIN can review its supplier management strategy and distribute the focus more evenly on cost, delivery, quality, supplier relationships and growth. By strengthening communication and cooperation with suppliers and developing together, it will not only help improve the overall level of the supply chain, but also better meet market demand.
Conclusion:
Although SHEIN has some shortcomings in supply chain management, this does not hinder its success in the field of fashion e-commerce. By carefully reviewing and improving its supply chain management model, SHEIN is expected to further improve production efficiency, enhance product quality, and establish more solid partnerships. These efforts will help ensure that SHEIN maintains its leading position in the fierce market competition while providing consumers with a better shopping experience.