Oct 30, 2020|
Behind the Scenes of JD’s Asia No. 1 Fulfillment Center Network
by Ella Kidron
Leo Xia, head of JD’s Asia No. 1 fulfillment center project, gave an in-depth overview on September 9th of the project to top consultancy Gartner. Thomas O’Connor, senior director at the supply chain center at Gartner moderated the discussion. The exclusive peek behind the scenes has now been made available to the public here.
Leo Xia, JD.com
JD started preparing to build its automated logistics fulfillment center in July 2009, called Asia No. 1. As the name indicates, the plan was to build the largest scale and most advanced network of e-commerce logistics centers in Asia. The ultimate goal is to increase efficiency and reduce costs. Today the network has over 30 fulfillment centers across China.
In 2012, JD took the lead in building the first e-commerce operations center, integrating temporary storage, order processing, sorting and distribution. It come into operation in 2014, around the time of JD’s IPO on the Nasdaq（May 22nd ,2014）. The following year, the first Asia No. 1 to handle small items was put into operations in Guangzhou. With the rapid growth of JD’s business, the speed of construction of Asia No. 1 projects has also sped up.
The Asia No. 1 project in Beijing is a good example. This project began operations in 2017. The automated equipment includes a 19-storey shuttle system, which greatly improves storage capacity. Picking is also much more efficient. Compared with manual picking, automated picking is 6-8 times more efficient. Storage efficiency is also 10 times that of traditional storage.
Gartner Webinar
As far as automated sorting goes, JD’s Wuhan Asia No. 1 provides a helpful picture. The project was put into operation in 2019, and uses an industry-leading large-scale cross-belt sorting system and a high efficiency sorting system. The capacity of a single sorting facility can reach 24,000 items per hour. Twenty-four sorting gates can operate at the same time. The daily order processing capacity of the sorting facility is over 1 million orders. What’s more, the sorting efficiency is five times higher than that of the traditional operation model.
Xia also introduced JD’s state of the art bulky storage system which is in its Langfang, Hebei province fulfillment center. It has a total floor area of 87,000 square meters. It began operating in 2020.
This is the first automated pallet storage and retrieval system, or “AS/RS”, for bulky items in Asia’s e-commerce industry. With the automated AS/RS, automated storage and picking for items including furniture and home appliances is made possible at an efficiency three times that of traditional warehouses.
To help put things in perspective: During the 618 Grand Promotion, which is the anniversary of JD’s founding as well as the largest mid-year shopping festival in China, the AR/RS was able to handle 15,000 items in 24 hours, with a maximum of 2,500 items per hour at peak time, representing an efficiency increase of 16 times. After implementing the AS/RS, the storage efficiency is 15.7 items per square meter, which is 145% more efficient than traditional storage. The efficiency of a multi-layer inbound entry is 50 pallets per hour, increased 150% compared with a flat inbound entry.
In the Q&A, Xia shared a bit on future development plans for the Asia No. 1 project and JD’s smart logistics fulfillment centers. He explained that technology application in JD’s logistics centers will continue to focus on two areas: 1) increasing effective space utilization and 2) efficiency of human labor (or work efficiency). “Different flexible dense storage systems will continue to improve the efficiency of space utilization. On the other hand, we will apply cutting-edge applications of “goods to person” technology. In the operations process (inbound, shelving, picking, inventory, outbound), we will appropriately introduce automation equipment and comprehensively improve the efficiency of human labor and our overall operations.”
Apr 25, 2024|
JD Logistics and MINISO Announce Expanded Partnership to Enhance Logistics Efficiency
JD Logistics (also known as JINGDONG Logistics), a leading global logistics provider, recently announced the expansion of its partnership with MINISO, the renowned household and consumer goods retailer. This collaboration, which began in 2022 with operations in Australia, now extends to MINISO’s network in Malaysia.
JD Logistics’ robust global supply chain infrastructure includes nearly 90 bonded, direct mail, and overseas warehouses across key markets such as the United States, Germany, the Netherlands, France, the United Kingdom, Australia, the Middle East, and Southeast Asia. Committed to replicating its proven supply chain management expertise from China in international markets, JD Logistics provides extensive support to a broad spectrum of clients, including international enterprises and Chinese brands expanding overseas.
MINISO’s diverse product range and rapid restocking requirements, combined with its strategic store locations in bustling commercial areas, present unique logistical challenges. These include critical delivery lead times and the need for off-hours operations to ensure uninterrupted customer experiences. JD Logistics has effectively met these demands through reliable and adaptable warehousing and fulfillment service solutions.
Notably, the trust built with MINISO has led some store managers to entrust their store keys to JD Logistics’ drivers to facilitate smooth and timely deliveries. Among them is JD Logistics driver Nick Yang, responsible for delivering goods to all MINISO stores in Sydney. Yang’s daily schedule involves commuting between JD Logistics’ warehouse and approximately 10 MINISO outlets throughout the city.
Over the next three years, JD Logistics will continue to develop its comprehensive global supply chain logistics network, which integrates overseas warehouses, international transshipment hubs, local distribution networks, and transnational transportation networks.
This partnership is not only a testament to JD Logistics’ proven expertise and global operational capabilities but also underscores the commitment of both companies to foster innovation in supply chain management for retail operations worldwide.
Apr 18, 2024|
JD.com Awarded 2024 INFORMS Prize for Excellence in Operations Research and Analytics
JD.com is honored to announce that it has been awarded the 2024 INFORMS Prize. This recognition makes JD.com the first Asia-based enterprise to receive the award, highlighting its pioneering use of advanced analytics and operations research/management sciences (OR/MS) within its business operations.
The INFORMS Prize is awarded an organization that has repeatedly applied the principles of advanced analytics and OR/MS in pioneering, varied, novel, and lasting ways. Previous recipients include Walmart, Wayfair, Amazon, UPS, Booz Allen Hamilton, BNSF Railway, Walt Disney Company, U.S. Air Force, General Motors, Intel, HP, IBM, Ford, Procter & Gamble and GE Research.
Speaking on behalf of the selection committee, Mehmet Gumus, 2024 INFORMS Prize committee chair, remarked: “JD.com is showcasing data science as a source of business success and a necessary element to achieve customer satisfaction with continuous and dedicated practice. JD.com is truly deserving of this prestigious prize, and the entire O.R. and analytics community joins INFORMS in thanking them for their priceless contributions to the field and the business world.”
JD.com’s commitment to enhancing operational efficiency and customer service through OR/MS has been integral to its success. The company has developed an independently managed intelligent supply chain system that utilizes cutting-edge operations research algorithms to optimize warehouse management and logistics operations. This includes the operation of hundreds of intelligent warehouses and dozens of “Asia No. 1” intelligent logistics parks.
“We are honored to accept the INFORMS Prize and will continue to be steadfast in our dedication to leveraging the transformative potential of operations research,” said Sandy Xu, CEO of JD.com. “Our company’s supply chain not only aims to lead the industry, but also enhance the efficiency and well-being of our entire ecosystem.”
By the end of the fourth quarter of 2023, JD’s supply chain infrastructure assets had grown to RMB 153.8 billion, an increase of 16% year-on-year. Managing over 10 million self-operated SKUs, JD has achieved a global leading average inventory turnover of 30.3 days. This operational prowess enables JD to fulfill 95% of retail orders within 24 hours, significantly enhancing customer satisfaction and setting new standards in the industry.
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