Muhammad Mazhar HussainSHEIN supports its suppliers in meeting its standards through a multifaceted approach that emphasizes training, investment, and compliance monitoring.
Training and Workshops
SHEIN conducts extensive training programs for its suppliers to ensure they understand and adhere to the Supplier Code of Conduct (CoC). In 2023, the company organized 133 group workshops and 276 one-on-one training sessions, reaching over 5,200 participants. These sessions provide clear examples of compliance requirements and outline remediation steps for any violations[1][3].
Financial and Technological Support
SHEIN invests significantly in its suppliers, allocating $70 million to enhance their capabilities through technology upgrades, facility improvements, and worker training initiatives. This support helps suppliers align with SHEIN's digital supply chain model, enabling them to make informed manufacturing decisions based on real-time data about capacity and inventory levels[1][3].
Compliance Monitoring
To enforce compliance, SHEIN employs a robust auditing system, conducting nearly 4,000 unannounced audits in 2023. These audits are carried out by third-party verification agencies and internal auditors to assess adherence to labor practices, health and safety standards, and fair wage policies. Suppliers found in violation face penalties, including potential termination of contracts[1][3].
Empowerment Initiatives
SHEIN's approach includes empowering suppliers by facilitating centralized purchasing of materials, which reduces costs and enhances efficiency. This collaborative relationship aims to foster long-term partnerships, ensuring that suppliers can thrive while meeting SHEIN's stringent standards[1][2][3].
Through these strategies, SHEIN aims to create a responsible and ethical supply chain that prioritizes the welfare of workers while supporting its suppliers' growth.
