This blog post will look at how SHEIN manages its suppliers. We will discuss the company’s supplier management system and how it works.
This is an important topic, as supplier management is critical to running a successful business.
We will also explore some of the challenges that SHEIN faces in managing its suppliers and how it deals with them.
What is SHEIN?
SHEIN is an online clothes shopping platform that offers users a wide variety of fashion items at highly competitive prices.
The company was founded in 2008. Since then, it has become one of the leading fashion brands in the world, with over 8 million active users.
SHEIN’s mission is to provide affordable fashion for everyone, offering a huge selection of clothes, shoes, accessories, and more for men, women, children, and wedding dresses.
Shein platform also has a wide range of plus-size clothing available. Shein’s prices are very low, with the retailer’s official website listing T-shirts, trousers, and dresses for $3, $7, and $13, respectively, which is often 50% or lower than the cost of similar products from other fast fashion brands such as Inditex-owned Zara.
Why Is Shein So Cheap?
There are a few reasons that Shein can keep its prices so low.
The main reason is the way it manages its suppliers. SHEIN has a very efficient system for managing its suppliers, which allows them to keep costs down.
They can also get their hands on the latest fashion items quickly and easily, as they have an extensive network of suppliers. This means that they can offer the latest trends at very competitive prices.
Other reasons include that they produce a lot of their clothing in-house. This means they don’t have to outsource production to other companies, which can often be more expensive.
Additionally, Shein sells directly to consumers through its online store. This cuts out the middleman and helps keep prices low.
Finally, Shein benefits from economies of scale. Since they sell such a large volume of clothing, they can get discounts from their suppliers, which they can then pass on to consumers through lower prices.
How Does SHEIN manage its Suppliers?
According to an analysis by Zhongtai Securities, Shein is extremely thorough in evaluating its suppliers.
A scoring system sorts the wheat from the chaff. A supplier’s score comprises 40% timeliness of procurement and delivery, 20% stocking and delivery, 10% defects rate, and 20% new product success.
The remaining portion, 60%, is derived from order volume. They are divided into five levels, and the bottom 30% of each tier is removed.
Shein has about 50% of the clothing suppliers in Guangzhou, with quality control becoming more rigorous in recent years and some claiming they can’t keep up.
Even so, there’s a ready supply of manufacturers and designers to take their places. While Zara attempts to employ more experienced designers and send them to worldwide fashion gatherings, Shein can quickly hire Chinese vocational school graduates who finish their research online.
Steps in the SHEIN Supplier Management System
- Step #1 Selection: The SHEIN supplier management system’s first step is selection. SHEIN selects its suppliers based on several criteria: quality, price, reliability, and capacity. SHEN only works with suppliers that can meet its high standards for quality and safety. They also take help from google trends for market research.
- Step #2 Evaluation: After selecting its suppliers, SHEIN evaluates them to assess their performance. This evaluation includes regular audits of the supplier’s facilities and a review of their compliance with SHEIN’s ethical sourcing policy. SHEIN also monitors its suppliers’ performance through customer feedback and reviews.
- Step #3 Improvement: If a supplier is not meeting SHEIN’s standards, SHEIN will work with the supplier to improve its performance. This may include training for the supplier’s employees or working with the supplier to implement new processes and procedures. If a supplier is still not meeting SHEIN’s standards after taking these steps, SHEIN may terminate its relationship with the supplier.
By following these steps, SHEIN can maintain a high level of quality and safety for its products.
How Does SHEIN’s Supplier Management System Benefit Consumers?
Consumers benefit from SHEIN’s supplier management system in several ways. By ensuring that products are high quality and safe, consumers can be assured that they are getting their money’s worth.
Additionally, by reducing costs and increasing efficiency, SHEIN can offer its products at lower prices. This benefits consumers by providing them with access to affordable, high-quality products.
Where Is Shein Located and Where Do Shein Clothes Come From?
Shein’s products are sourced from all over the world; however, most of their offering is produced in-house at their factories. This allows them to keep costs down while still offering various products.
They have factories in China, Bangladesh, India, Vietnam, and more.
Shein also has offices in the United States, United Kingdom, France, Italy, Australia, Canada, and more. This allows them to serve customers all over the world.
On their social media platforms, Shein announced that it ships its fast-fashion merchandise to over 220 countries and regions worldwide.
Is Shein Good Quality?
There is no simple answer to this question since the quality of Shein clothing can vary widely from item to item. In general, however, it is fair to say that Shein offers good quality clothing at very affordable prices. While some items may be of poorer quality, the company provides good value for money overall.
Of course, what one person considers good quality may differ from another person’s standards. So, if you are considering ordering from Shein, it is always a good idea to research and read reviews from other customers. That way, you can better understand what to expect in terms of quality.
Should I Purchase Clothes From Shein?
If you’re looking for affordable clothes, Shein is a great option. With prices starting as low as $5, you can find tops, dresses, bottoms, and more for a fraction of the cost of other retailers.
While the quality of the clothing isn’t always the best, it’s still worth checking out if you’re on a budget. Plus, Shein often has sales where you can save even more money.
Just be sure to read the reviews before purchasing anything to make sure it’ll meet your expectations.
Benefits of Good Supplier Management
There are many benefits of good supplier management. Here are some:
- Ensures that products are of high quality: By thoroughly evaluating and monitoring its suppliers, SHEIN can ensure the products it sells are of high quality. This protects SHEIN’s reputation and helps to build customer loyalty.
- Reduces costs: Good supplier management can help reduce costs by ensuring that suppliers meet SHEIN’s quality standards. It can help reduce the need for costly repairs or replacements.
- Increases efficiency: Good supplier management can help increase efficiency by ensuring that suppliers meet SHEIN’s delivery schedules. This can help to avoid delays in the production process.
By following a rigorous supplier management system, SHEIN can ensure that its products are of high quality and safe for consumers. Additionally, good supplier management can help to reduce costs and increase efficiency.
Drawbacks of Bad Supplier Management
There are also some drawbacks of bad supplier management. Here are some:
- Can lead to inferior products: If suppliers are not properly monitored, they may cut corners to save costs. This can lead to inferior products being produced.
- Can cause production delays: If suppliers do not meet SHEIN’s delivery schedules, it can cause delays in the production process.
- Can increase costs: If suppliers do not meet SHEIN’s quality standards, it can lead to increased costs for repairs or replacements.
Bad supplier management can have some serious consequences. It can lead to inferior products, production delays, and increased costs. That’s why it’s so essential for companies to monitor their suppliers carefully.
How Can You Improve Your Supplier Management?
If you want to improve your supplier management, you can do a few things.
Here are some:
- Ensure that all your suppliers are aware of your expectations. Make sure they know what you expect regarding quality, delivery times, and communication.
- Conduct regular supplier reviews. It will help you to identify any areas where improvements can be made.
- Make use of technology. There are many software solutions available that can help you to manage your suppliers more effectively.
- Encourage feedback from your suppliers. It will help you identify areas where they feel they could improve.
By following these tips, you can ensure that you are doing everything possible to manage your suppliers effectively. Shein business model is a great example that you can follow if your business is related to the fashion industry.
Wrapping Up:
SHEIN is a company that takes pride in the quality of its products. To maintain this high standard, they work closely with their suppliers to ensure that each piece meets their rigorous quality control standards.
Fashion trends are always changing, which can make it difficult for companies to keep up.
However, by following a rigorous supplier management system, SHEIN can ensure that its products are of high quality and safe for consumers. Shein business models are a great example for new fashion brands.
Contact us today if you’re looking for a supplier who can meet your demanding standards.
Lezhou Garment is a professional and experienced clothing manufacturer, with over 10 years of experience in the industry. We are experts in all aspects of garment production, from design to manufacture.
We would be happy to help you find the perfect partner to bring your vision to life.