SHEIN’s warehousing and logistics layout and its optimization strategy
As a world-renowned cross-border e-commerce platform, SHEIN has set a benchmark in the industry with its excellent warehousing and logistics layout and optimization strategies. Behind its success is the effective management of the global warehousing and logistics network and the precise control of all aspects of the supply chain.
Warehouse logistics layout
Domestic central warehouse
SHEIN’s main warehousing center is located in Foshan, Guangdong, China, and is equipped with multiple satellite warehouses. The Foshan Central Warehouse is responsible for 95% of the world’s merchandise delivery tasks, with approximately 30 million pieces of inventory and 400,000-500,000 SKUs. This central warehouse is the key for SHEIN to achieve efficient order processing.
Overseas operation warehouse
In order to better serve the international market, SHEIN has set up overseas operating warehouses in multiple regions, including Hong Kong, the northeastern and western United States, Delhi, Belgium and other places. These warehouses cover specific areas, speeding up delivery and reducing shipping costs.
Overseas transit warehouse
SHEIN has overseas transit warehouses in many places around the world, such as Dubai, Italy, Saudi Arabia, Australia, Indonesia and Vietnam. These warehouses are mainly used to process consumer returns and prepare for secondary sales.
Warehouse logistics optimization strategy
Data-driven decision-making
SHEIN uses big data and algorithms to optimize logistics routes and transportation methods, and selects the best logistics solution by analyzing order data and inventory information in real time.
Cost and means optimization
Adjust logistics strategies according to actual conditions to reduce costs and improve efficiency.
Inventory management
Avoid overstocking or out-of-stocks by accurately forecasting and allocating inventory to maintain appropriate levels.
Supply chain management
Partnership
SHEIN works closely with suppliers, requires them to provide high-quality services, and supports suppliers’ sustainable development. Suppliers need to complete order delivery within 7-11 days and have the ability to process small batch orders.
MES management system
Adopt MES system for production process management to improve production efficiency and quality.
FOB mode
Designers and buyers participate in the design, and suppliers complete the production. Respond to market needs faster through front-end data collection and design team intervention.
To sum up, SHEIN has achieved efficient order processing and global distribution through its global logistics network layout, close supply chain cooperation, advanced information technology applications and continuously innovative cooperation models. These measures not only improve the quality of logistics services, but also bring a better shopping experience to consumers.
References:
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