Oct 22, 2020|
GSSC Series: Rise of China’s Supply Chain System Promotes Innovation Worldwide: Nobel Laureate
by Kelly Dawson
The rise in China’s supply chain system may ultimately result in a more robust global supply chain network, by pushing innovation and evolution that may not naturally have occurred in America’s more entrenched system, said Paul Romer, NYU economics professor and co-recipient of the 2018 Nobel Prize in Economics Sciences.
Speaking during JD’s Global Supply Smart Supply Chain Summit (GSSC) on October 22nd, Romer noted that the current friction between the two systems (and countries) is natural. “Nations rarely maintain their position at the cutting edge of innovation and growth and discovery,” he said. “And it’s important that new nations come along who can keep the process of growth and discovery moving. The incumbent, the former leader, never likes it when this happens. So, there will be some friction along the way.”
This kind of shift is healthy, whether within the global supply chain network or on a smaller level within industries, Romer said. If one enterprise maintains leadership within an industry over decades, that almost certainly will lead to stagnation and lack of innovation. The rise of new entities—and ideas—is essential to avoiding a “monoculture” of ideas, something the American system is now facing in its long-established supply chain, he said.
In China, JD.com is driving the kind of innovation that Romer spoke about. Today the company announced that it will put 100 autonomous delivery robots into operation in Jiangsu province’s Changsu city by the end of the year. JD will work with the city’s government to develop a smart city infrastructure to support the autonomous driving technology for delivery.
JD is also pushing forward the use of intelligent technologies in its warehouses. In 2017, JD launched the world’ s first fully automated B2C warehouse; today, 70 of JD’s warehouses implement automated technologies, including AGVs for picking up and sorting orders; and more. Additionally, twenty-eight of our Asia No. 1 fulfillment centers utilize 5G, integrating edge computing, big data, AI and SaaS.
Recently JD helped Japanese firm Rakuten, Inc., a global leader in Internet services, complete a successful demonstration of drone delivery beyond visual range. This marked the first time in Japan that a drone was used to deliver supplies in a mountainous region where the difference in altitude between takeoff and landing locations reached approximately 1600m. JD provided the drone and technology to achieve this maiden flight.
These kinds of innovations represent the progress that can be made by each individual entity that participates in the global supply chain, a point that Romer compared to a classic analogy posed by Adam Smith. In a pin factory, each individual is responsible for one particular task, refining and perfecting that task over time—and then that task becomes part of a chain of tasks, each perpetually improving to eventually form the strongest possible chain. Similarly, the global supply chain is made up of such individual entities, in the form of brands, manufacturers and enterprises like JD.
Ultimately small refinements and innovations by each link in the chain will drive evolution, Romer said. “Those ideas are ultimately much more important and have a bigger impact on our daily life then the kinds of things that get published in a scientific journal.
“The global supply chain is the modern reflection of the most important dynamic in economic life,” he added.
Romer’s comments came amidst the fifth GSSC summit, which is an annual event focused on logistics innovation and technology communication on a global scale, hosted by JD Logistics. Under this year’s theme of “Open Capabilities, Shared Growth”, the GSSC gathered the world’s leading experts in the industries of logistics, commerce, science and technology to discuss how to seize the opportunities provided by the macro environment and policy, with an aim to reshape the industrial supply chain and promote high-speed growth.
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.
GSSC Series: JD Empowers Industries Through Supply Chain Solutions
