In recent years, the fashion e-commerce giant SHEIN has made significant strides in fortifying its supply chain within the domestic market, with investments exceeding a staggering 10 billion yuanThe company is not only pumping funds into the supply chain but is also diligently empowering its suppliers in multiple dimensionsThis dual approach aims to advance lean manufacturing, smart digitization, and a greener operational footprint across the entire industry.
During the first half of 2023, SHEIN announced a sizable commitment of 500 million yuan over five years to enhance supplier capabilitiesBy the end of 2024, the company has already allocated 250 million yuan towards this initiative, focusing on crucial areas such as technological innovation, training support, factory expansions, and community service engagementsNotably, SHEIN is also directing efforts towards carbon reduction, utilizing a comprehensive “4+1” empowerment system that amplifies the overall capabilities of its suppliers.
A landmark achievement for SHEIN in 2023 was the establishment of its first Clothing Manufacturing Innovation Research CenterThis center is pivotal in setting flexible supply chain standards and exploring cutting-edge garment manufacturing technologiesOver the last two years, SHEIN has invested 170 million yuan into technology innovations that provide vital support in digital transformation and lean upgrades across the industryIn 2024, the Research Center has already conducted 485 training sessions attended by more than 20,000 participants from its supplier networkCumulatively, almost 1,000 training events have been organized within two years, covering various essential aspects such as organizational structure, production management, and quality inspection, ultimately boosting the management and operational prowess of these suppliers
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Moreover, approximately 60 talent certification evaluations and 10 vocational skill assessments have been rolled out in 2024, aiming to cultivate a pool of skilled workers and management personnel for the industry.
When it comes to factory expansions, SHEIN goes beyond providing mere financial assistance; the corporation offers comprehensive guidance right from the site selection phase to environmental layout and production workflowOver the last two years, SHEIN has successfully assisted more than 200 partner factories, facilitating upgrades that encompass over 500,000 square meters of factory space, resulting in benefits for approximately 33,000 employees.
In addition to operational enhancements, SHEIN has initiated several community welfare projects aimed at improving the well-being of employees within supplier communitiesThese initiatives include funding renovations for canteens, dormitories, and multipurpose rooms in supplier factories, covering nearly 14,000 square metersFurthermore, the "Children’s Home" program, which provides childcare and educational support, has successfully established 25 centers, collectively serving about 55,000 individualsSHEIN has also organized summer camps for supplier employees' children, benefiting over 700 participants, and the "Gathering Star Light" initiative has provided support to over 640 families, easing temporary financial burdens related to education and medical care.
Building upon these four key supplier empowerment projects, SHEIN has also enhanced its funding for green initiatives focused on carbon reduction, such as rooftop solar installations and energy enhancement projects among its supplier networksThis continued focus on the “4+1” empowerment system underscores its commitment to improving the comprehensive capabilities of suppliers in terms of lean, intelligent, and green practices.
The past few years have witnessed SHEIN intensifying its investment in the domestic supply chain, with over 10 billion yuan being funneled into infrastructure development
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