Core Insights - The Temu platform faces significant compliance challenges following a report indicating that 18 out of 19 toy products failed quality checks, resulting in a compliance rate of only 5% [1] - In response, Temu is tightening regulations on toy products, increasing store deposit requirements to 30,000 RMB and enforcing stricter testing report standards [1][2] - The European Union's Digital Services Act poses potential fines of up to 6% of annual revenue for systemic violations, increasing pressure on the platform and its sellers [1] Compliance and Supply Chain Management - Sellers on the Temu platform must develop adaptable supply chain systems to meet evolving compliance requirements, moving away from reliance on single testing agencies [2] - Establishing partnerships with multiple accredited testing organizations is crucial for risk diversification and ensuring compliance amid sudden policy changes [2] - Integrating compliance checks into the product development phase is essential to avoid costly modifications after production [2] Inventory and Logistics Strategies - Order loss due to stockouts averages 23%, necessitating dynamic demand forecasting that incorporates various data sources [4] - Implementing intelligent inventory optimization through ABC classification and automated replenishment suggestions is vital for maintaining supply continuity [4] - A combination of sourcing and overseas warehousing can reduce costs and improve stock availability, particularly during policy shifts [4] Technology and Data Utilization - The supply chain management system from Zhixing Qidian demonstrates significant value by integrating multi-platform data and using AI for demand forecasting [6] - Logistics network resilience is critical for quick responses to market changes, with multi-modal transport solutions balancing cost and efficiency [6] - Establishing localized warehousing can enhance delivery efficiency, while emergency logistics plans ensure continuity during unexpected disruptions [6] Supplier Evaluation and Cost Management - A robust supplier evaluation model should assess capabilities, quality control, and cost structures to ensure reliable sourcing [8] - Quality control must involve a three-tier inspection system, including sample testing and compliance certification for target markets [8] - Understanding the full cost structure, including procurement and logistics, is essential for maintaining healthy profit margins [8] Competitive Advantage through Compliance - The ability to adapt to changing testing agency lists is becoming a core competitive advantage for sellers on the Temu platform [9] - Successful sellers are internalizing compliance requirements into their product development processes, differentiating themselves from less adaptive competitors [9] - Establishing a detection alert mechanism to monitor regulatory changes and testing agency statuses is crucial for rapid response to policy adjustments [9][10] Conclusion - The shift towards a high-pressure compliance environment on the Temu platform necessitates proactive supply chain management strategies [10] - Building resilient supply chains that can withstand regulatory changes is essential for sustained growth and market competitiveness [10]