Innovation or Bubble? The Temu Supply Chain Case
Lifang Wu
Department of Business Analytics and Information System, Xavier University, USA
Wei Yang
Long Island University, USA
Volume 18: 2024, pp. 00-00; ABSTRACT
This teaching case explores the business model of Temu, a rapidly growing ecommerce platform known for its ultra-low prices. The case delves into how Temu leverages a
robust and agile “direct shipping from China” supply chain to maintain its low-cost advantage
while ensuring timely delivery of products to international shoppers. Despite its remarkable
growth, Temu was also facing substantial financial burden and uncertainties. The case was
developed to provide a basis for discussing the latest supply chain strategies for online retailers
in consideration of cost, supply chain responsiveness, and risks.
Keywords: operations strategy, supply chain management, logistics network, supply risk management.
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