Shein supply chain model is built on the basis of high efficiency and speed. Its characteristics are to use advanced technical means and global resource integration to achieve flexible and fast production and logistics management. This article will introduce the shein supply chain model in detail.
Supply Chain Community
In order to meet consumers’ order needs for goods, shein must cooperate with the supplier system to achieve strict standards of small batch, fast, high quality and low latency. Shein has given suppliers guarantees and help from the beginning, forming a form of mutual care, that is, shein supply chain community, forming a highly bound and mutually beneficial supply relationship.
Shein is responsible for suppliers
①Shein leaves the inventory pressure to itself to ease the inventory pressure of suppliers.
②Shein tries its best to ensure the safety of the capital chain, never defaults on suppliers, and settles accounts with suppliers as quickly as possible, generally within 30-45 days.
③Shein also requires cooperative suppliers not to default on wages of upstream manufacturers, “Once someone reports, the cooperation will be terminated immediately.”
④Some suppliers are too small, shein will also launch a support plan to borrow money from suppliers to purchase equipment and factories.
Supplier Responsibilities
①Suppliers try their best to cooperate with the high-quality service regulations proposed by shein. After shein develops steadily, shein will help manufacturers develop steadily.
②Suppliers must have the ability to supply within 7 to 11 days and have the ability to quickly return to contract 100 to 500 small-scale orders.
③The service regulations for suppliers are more stringent, such as “spot goods will be shipped within 40 hours, and replenishment will be shipped within 5 days” (the average delivery cycle for replenishment in the industry is generally 15 to 20 days).
④The quality standards for suppliers’ categories are relatively strict, such as “the number of threads on a piece of clothing must be less than three, and it cannot be more than 3 cm long”, etc.
MES Management System Supply Chain
shein has also established an MES system to complete the infiltration process management of factories and workers.
In shein’s recruitment notice, the responsibilities of MES system developers are described as: “Use the MES system developed by our company for the cooperating garment factories as a tool to help our production department introduce management systems, rules and concepts to the garment factories.” In addition, shein’s merchandiser responsibilities also include “educating suppliers on the application of the operating platform and deeply participating in our operations and management.”
shein and suppliers jointly build a supply chain community, and establish a highly binding and mutually beneficial supply relationship by safeguarding the interests of suppliers, achieving fast and high-quality order delivery and debt security. And by introducing the MES management system, the refined management of the supply chain and rapid delivery services are realized, and the operation of the supply chain is jointly realized.