Oct 22, 2020|

GSSC Series: JD’s Smart Cloud Warehouse Project Helps Boost Local Industrial Economy


by Ling Cao

As some of China’s lower tier counties and districts embrace e-commerce, JD has leveraged its capabilities in supply chain to help them realize an integrated and efficient fulfillment process. By cooperating with JD’s Smart Cloud Warehouse project, Pingyi county has set an example for other counties in Shandong province in this field.

JD has helped Pingyi build a smart cloud warehouse system for local enterprises that extends across more than 40,000 square meters, featuring automatic storage, sorting, and recording. The project uses four self-developed technological products of JDL, namely: AS/RS (Automated Storage and Retrieval System), Tianlang shuttle system, Dilang AGV and cross-belt sorter. In addition to these hardware technologies, software management systems such as CLPS, WMS, TMS, and WCS will be widely used to realize automation and other intelligent processes.

Pingyi is setting an example for other counties which also want to help their local enterprises transition to ecommerce, but may currently face challenges on the logistics side from non-standard fulfillment infrastructures in their districts.

After partnering with JD’s Smart Cloud Warehouse project, Pingyi’s warehouse for local enterprises is significantly more efficient. In particular, the automatic storage system allows a storage capacity of 11,000 cubic meters. As a result, the warehouse can serve both 2B and 2C businesses. Once the goods arrive, the staff can start selection, achieving a goods-to-person model with 100,000 orders processed each day. Local enterprises can also choose to take advantage of JD Logistics’ last mile delivery services, making the process even more efficient.

Zhenhui Wang, CEO of JD Logistics said at the 2020 Global Smart Supply Chain Summit held virtually today, “The Pingyi Smart Cloud Warehouse is a benchmark project of smart cloud warehouses for products’ places of origin. In the future, we will copy the successful story of Pingyi Smart Cloud Warehouse to more industry belts. Our wish is to empower local communities by a smart supply chain system and help the local economy take off.”

Officially launched in December 2017, the JD Cloud Warehouse project aims to help partners upgrade existing warehouse management systems. Partners can also benefit from co-branding with JD, as well as have the option to use JD’s ultra-efficient delivery service, with products marked as “Delivered by JD Logistics” on JD’s e-commerce website to provide customers with peace of mind. The program aims to achieve full coverage of all districts and counties across the country within three years.

Wang added, “We manage low-frequency products in a centralized manner, deploy warehouses of high-frequency products closer to customers, and deliver goods from their places of origin regardless of the scale of the goods. In industries such as FMCG(fast-moving consumer goods), electronics, energy, industrial products, and automobiles, we will empower the industries through supply chain solutions to improve efficiency.”