Temu adopts the supplier model, so Temu merchants do not need to be responsible for shipping to buyers, they only need to ship to designated domestic warehouses. Then, Temu merchants have two shipping modes: JIT and VMI mode. This article will explain the difference between JIT and VMI modes in Temu.
Temu merchants have two modes to choose from, one is the JIT mode, also called the pre-sale mode; the other is the VMI mode, which can be understood as the stocking mode.
The VMI stocking mode is that the seller needs to prepare the goods to the Temu warehouse.
What are the benefits of the VMI model: To a certain extent, the seller’s risk is smaller and will not be fined due to the timeliness of logistics.
So what are the disadvantages? Because the goods are stored in the warehouse, the seller will have a certain amount of stocking pressure. Although the warehouse does not charge money, the seller only delivers the goods to the warehouse and bears the logistics freight; but if the goods are not sold, the seller will indeed have spot pressure.
In the VMI mode, the goods need to be prepared by the merchant before they can be put on the shelves for sale. That is, the goods will appear on the buyer’s front page only after the merchant has prepared the goods and completed the warehousing; when they are out of stock, they will be taken off the shelves. Therefore, in the VMI mode, the most important thing for merchants is to do a good job of inventory management to avoid out-of-stock. This mode is a stocking mode of “prepare goods first, then put them on the shelves for ordering”.
The JIT pre-sale mode means that after the order is placed, the merchant needs to deliver the goods to the Temu warehouse within the specified time.
This mode is a pre-sale mode of “order first and then ship”. What are the advantages of this mode: no spot preparation, no spot pressure. But the disadvantage is that because there will be timeliness requirements, the risk will be higher to a certain extent. In the JIT mode, the goods must be put into the warehouse within 72 hours. If there is no way to enter the warehouse during this period, there will indeed be a certain fine.
Stores can use both VMI and JIT. Both ends support intercommunication.
The above content is about the difference between JIT and VMI modes in Temu. If part of the store can be stocked, choose VMI; if it can be shipped just in time, use JIT. The specific model can be discussed with the investment manager or buyer manager to evaluate which model is more suitable.