FOB mode refers to the design and production of the first garment on SHEIN platform, and then the production is completed by the supplier.
Under FOB mode, designers and buyers will capture the product drawings of various clothing retail websites according to the "tracking system" independently developed by SHEIN, refer to popular searches and trends in different countries, predict popular colors, fabrics and styles, and then design new clothing styles by combining elements.
After collecting massive first-party data at the front end, SHEIN flows directly into the supply chain through the hands of the design team. Due to the advance layout and support of SHEIN, many cooperative manufacturers are not only willing to take small orders, but also access SHEIN's supply chain management system for the first time.
In this way, a group of factories that have never been digitized are connected to the same brain and the same cloud system. The initial order quantity is generally 100 to 500 pieces, and then whether to carry out mass production is decided according to the order quantity received after the new products are put on shelves in official website and the clearance speed.
Problems in SHEIN Supply Chain Model
1, SHEIN's management of suppliers is still rough, and it is basically an order-driven model for suppliers because of its small batch, many styles and large overall quantity, and it is not a clear supplier management model.
2.SHEIN's influence in the industry is really great, basically it is absolutely strong, and there is feedback from suppliers. In order to meet the delivery date of SHEIN, it is basically necessary to work overtime or even stop orders from other customers.
3. The priority of 3.SHEIN's supplier management is basically inferred as: cost >; Delivery date > quality > supplier relationship > supplier growth.
In order to meet the demand of orders, SHEIN needs the cooperation of supplier systems to achieve strict standards of small batch, high speed, high quality and low delay. From the very beginning, SHEIN provided certain guarantees and support to suppliers, forming a way of mutual support, which is the * * * nature of SHEIN's supply chain, forming a highly bound and mutually beneficial supply relationship.