According to the description of former employees of SHEIN, the operation of the company in the supply chain has several characteristics. On the one hand, I will leave the pressure of inventory to myself. "Suppose I think you will lose money by making 80 pieces, I will order 100 pieces, and I am willing to bear the inventory myself." On the other hand, it will ensure the safety of the capital chain and never default on suppliers. "They even check out early," one supplier said in an interview. In order to further support suppliers, SHEIN will even lend money to small-scale factories to buy equipment and workshops when expanding production capacity.
SHEIN has stricter requirements on supplier service and category quality. At present, the company has introduced personnel with experience in Japanese and Korean enterprises to do factory quality control, and audited the supplier's KPI from four dimensions: timely delivery rate of emergency procurement, timely delivery rate of stocking, defective rate and success rate of new products.