Cross-border e-commerce is developing very fast nowadays. Shein is a platform that has developed in recent years. Many merchants want to develop on the Shein platform. In this way, merchants need to master the relevant introduction of Shein. Here are the advantages and disadvantages of Shein supply chain.
Advantages:
1. Fast settlement, short cycle, no pressure on payment, which is also the driving force for Shein suppliers to rush to cooperate with Shein. It is now understood that the settlement cycle is slow, and the goods that entered the warehouse last month will be paid off on the 15th of this month.
2. The risk pressure of supplier inventory is high. Shein spreads to the outside world that the production time of swimsuits is 5 days, women’s clothing is 7 days, and jeans are 12 days, and it is strictly controlled.
In order to meet the regulations of the return cycle, the buyer will stipulate that the manufacturer or the manufacturer itself will replenish the stock. Once the sales are poor, the Shein front-end sales will be removed from the shelves, and the inventory must be borne by the supplier.
3. Warehouse entry inspection has mandatory inspections for incoming quality inspectors. The ratio of incoming orders and return orders must reach nine to one, which will result in a 10% return of the same product regardless of whether there is a problem or not.
4. Shein customizes specific products with conventional auxiliary materials, such as zippers, and then suppliers purchase and use them uniformly to control the quality of the products to achieve consistent results.
Disadvantages:
1. Shein’s supplier management is also relatively rough. Due to the small batch, many styles, and large overall quantity, suppliers are basically order-driven, and there is still no clear supplier management mechanism.
2. Shein’s reputation in the industry is relatively accurate and basically strong. Some suppliers have reported that in order to meet Shein’s delivery date, they basically have to fight day and night and even stop orders from other customers.
3. Shein’s priorities for supplier management are mostly: cost > delivery time > quality > supplier relationship > supplier development.
After the introduction, everyone understood the advantages and disadvantages of Shein’s supply chain, which actually includes the above-mentioned related knowledge. After mastering these basic knowledge, the store’s capabilities have been better developed, and Shein has a complete soft supply chain. Compared with the past, it can achieve large-scale small-order quick response.