Modern business is constantly evolving, and with it comes the emergence of various supply chain management models. Temu Merchants, as an emerging e-commerce platform, provides two main supply chain management models for merchants to choose from: JIT model and VMI model. These two models represent the pre-sale model of “order first, then ship” and the stocking model of “prepare goods first, then put on the shelves and order”.
In the JIT (Just-In-Time) model, merchants need to deliver the goods to Temu’s Zhaoqing Heyu warehouse within a specified time (usually 2 days) after receiving the order. Merchants can choose to deliver the goods by themselves or send them to the warehouse by express delivery. This model emphasizes high timeliness, in which the order is completed first and then the delivery process is completed. This requires merchants to have an efficient inventory management and logistics system to meet the rapid delivery of orders.
On the other hand, the VMI (Vendor Managed Inventory) model requires merchants to complete stocking before putting the goods on the shelves. Only after the merchant successfully prepares the goods and completes the warehousing operation, the goods will be displayed on the buyer’s front page. The focus of this model is inventory management. Merchants must closely monitor inventory to avoid out-of-stock and out-of-stock situations. This is also a supply chain model that prepares goods first and then puts them on the shelves, ensuring the stability and predictability of the supply chain.
Currently, most merchants prefer the VMI model because the JIT model has high requirements for timeliness, and the product review and listing process is relatively slow. Below, we will explore the merchant’s shipping and warehousing process under the VMI model in depth.
Step 1: Waiting for the first order.
Once the product passes the price review, picture review and other links, the merchant can consider listing it. However, it is still in the “waiting for the first order” state, which means that the merchant needs to wait for the first stocking to be completed. At this time, the merchant can start stocking and shipping operations.
Step 2: Packing and shipping.
Packaging and shipping is a key link, and special attention should be paid to the following points:
1. Strictly check the quality of each product, because a product with quality problems may cause the entire batch of products to be returned, resulting in losses and affecting the warehousing time.
2. When packing goods, consistent packaging is required, especially for goods with the same SKC or SKU, the packaging must be consistent, otherwise they may be returned.
3. The product name code and barcode must be affixed to the product packaging, which requires highly precise operation. If there are multiple SKCs and SKUs, make sure there are no mistakes, because affixing the wrong barcode may result in returns and fines. At the same time, if the original product already has a barcode, FDA certification, website and address information, this information needs to be processed and should not appear on the packaging.
4. The shipping quantity and the actual shipping quantity, including SKU, must correspond one by one, otherwise you may be fined.
5. When shipping to Temu warehouse, pack according to the warehouse assigned when placing the order to ensure that there is no confusion.
6. For goods with the same SKC but different SKUs, physical isolation is required to facilitate warehouse sorting and warehousing operations.
7. If a box contains multiple SKUs, each SKU must be accompanied by a shipping note, but the outside of the box does not need one. If a box contains only one SKU, just put a delivery note on the outside of the box.
There are many other things that need special attention, but these are some of the important details in the shipping process.
Step 3: Courier Collection.
Once the goods are packed, the merchant only needs to wait for the courier companies such as SF Express or ZTO to pick up the goods and deliver them to Temu’s warehouse. At this point, the merchant’s shipping process is complete.
The merchant can also access Temu’s backend system to check the warehouse status and ensure that the goods can be put on the shelves in time and meet the needs of buyers.
In summary, Temu merchants can choose the JIT or VMI supply chain management model according to their needs and capabilities. Although most merchants prefer the VMI model, no matter which model is chosen, it requires a high degree of attention and strict process management to ensure the smooth listing of goods and the stability of the supply chain. These meticulous steps and precautions are crucial for merchants because they are directly related to whether the goods can be delivered to buyers in time, maintaining the stability and development of the e-commerce ecosystem. We hope this process can help merchants better understand Temu’s supply chain management approach so that they can run their e-commerce business more efficiently.