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. 5-42; 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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