Shein opened a 737,000-square-foot automated distribution warehouse in Lebanon, Indiana, with operations set to begin this month, according to a Sept. 10 press release.
The facility is equipped with technology and automation intended to improve fulfillment efficiency, including a goods-to-person fulfillment system that brings products directly to employee workstations, a Shein spokesperson told Supply Chain Dive in an email. With the technology, the company aims to reduce manual tasks and boost worker safety while strengthening its overall fulfillment capabilities.
Central Indiana is a key hub for Shein’s U.S. fulfillment network, with the new facility about 1.5 miles from the retailer’s existing operations in the state, according to the release. Shein first established its Indiana distribution presence in Whitestown in 2022. Now, between Whitestown and Lebanon, Shein has more than 2.5 million square feet of operational space in Indiana.
Besides Indiana, Shein’s U.S. fulfillment network includes distribution facilities in California alongside third-party logistics and fulfillment partners, the spokesperson said.
Fash fashion competitor Temu has also been pursuing expanding local fulfillment to mitigate regulatory changes impacting its low-cost, cross-border shipping model. Earlier this month, Temu owner PDD Holdings said it is altering its supply chain and fulfillment processes to combat European Union customs duties on lower-value items after employing a similar approach after the U.S. axed the de minimis exemption last year.