Nov 23, 2020|
HBS Students Take a Virtual Trip to JD.com
by Ella Kidron
Harvard Business School (HBS) students took a virtual field trip to JD.com in Beijing on Nov. 20th to hear from Natasha Li, director of supply chain planning products in the value supply chain (VSC) division at JD Logistics (JDL). In a session facilitated by HBS professors Willy Shih and Feng Zhu, Li, a veteran in the supply chain industry with over 15 years of experience, shared on the role of intelligent supply chain in JD’s business as well as the services it has opened up to external partners. Over 100 HBS students from all over the world participated in the lively hour-long discussion.
Natasha Li
“JDL is a supply chain platform based on the strategy of ‘technology-driven, leading the world’s efficient circulation and sustainable development’,” explained Li. She added: “Automation and robotics constitute the foundation of JDL’s intelligent supply chain.” This advanced technology is applied in JD’s automated warehouses as well as smart delivery stations and autonomous delivery vehicles, among many other use cases.
Natasha Li (Weijing Li) and HBS professors Willy Shih and Feng Zhu
Li cited JD’s cooperation with global conglomerate Nestlé on a large-scale smart storage and distribution center as an example. She explained that, using JD Logistics’ superior operational capabilities and technology advancements in supply chain management, the distribution center has is able to identify specific products, recognize their locations and use advanced intelligence to visualize and control the migrations or infiltrations of loads between different provinces.
Another critical application of technology is behind the scenes and heavily reliant on an intelligent solutions system. “The application of smart technology like AI has greatly improved the efficiency of our supply chain,” said Li. She explained that, through AI, JD is able to efficiently and orderly manage over six million SKUs maintaining an industry-leading 34.3 inventory turnover days, all while delivering over 90% of first party retail orders in just 24 hours.
JDL is opening up its capabilities to other companies as a service, and is becoming a platform.
JDL’s value supply chain (VSC) empowers various industries with supply chain technology. In the discussion, Li shared one example of Company W, an automobile company that is a beneficiary of JD’s VSC. She explained that the company needs to manage tens of thousands of after-sales spare parts. Previously, the company was heavily reliant on a very rudimentary Excel-based system, requiring huge amounts of manual labor and guess work, resulting in the company facing high inventory and logistics costs, no ability to conduct sales forecasts, mismatched capability planning, and inharmonious collaboration between suppliers and automobile company.
JDL’s VSC team used JD’s technology to set up a smart decision making engine, an algorithms platform covering AI, optimization and forecasting, and a simulation center. Through the “Jinghui” digital supply chain platform product, JD helped Company W realize systematization of supplier – RDC (regional distribution center) – “4S” stores, and set up demand driven forecasting, big data insights-driven decision making and more. Implementing the Jinghui system reduced the supply hierarchy and enabled the company to achieve network-wide collaboration. As a result, customer service improved 10% and inventory turnover days were reduced from 50-80 to 30-35.
Agility is one of the core advantages of JD’s supply chain and also the secret to its peak performance, as well as that of its partners. “The adoption of big data application and AI algorithms makes all aspects of the supply chain, such as demand forecasting, inventory allocation, and operations scheduling more accurate, efficient and perceptive to change.”
This is something that was made clear at the height of the COVID-19 outbreak in China. “During the pandemic, the agility of JD’s supply chain made it possible for the company to quickly respond to emergencies and ensure the recovery of production capabilities.” For example, JDL quickly increased inventory in its various front warehouses based on consumption big data to make sure that goods were placed as close to customers and could be delivered as soon as possible. Separately, at the end of December 2019, before the official COVID-19 outbreak was called, JDL’s monitoring system flagged a significant increase in mask sales in Wuhan, Hubei province, and immediately prepared 70,000 masks for its courier in the city and carried out replenishment and internal alerts.
The session concluded with an interactive Q&A in which students asked about a wide range of topics including returns, sustainability and more. On returns, Li explained that efficient logistics for returns is an important aspect of JD’s customer service value proposition. She explained: When it is easy to make returns, it helps customers feel more comfortable about making decisions to place orders more quickly because they know that if something doesn’t fit or isn’t the right color, they can return it hassle-free. As for sustainability, Li mentioned that JD plans to reduce carbon emissions by 50% by 2030 as part of a long-term commitment to increasing sustainability in the supply chain.
Dec 18, 2024|
JD Logistics Unveils International Business Development Roadmap to Enable 2-3 Day Delivery in Dozens of Overseas Markets in 2025
December 18, 2024, Shenzhen — JD Logistics (also known as JINGDONG Logistics), the logistics arm of JD.com, today unveiled its overseas business development roadmap at JINGDONG Logistics 2025 International Integrated Supply Chain Strategic Launch Event in Shenzhen. As part of the roadmap, the company will accelerate the growth of its “three networks”, the global warehouse network, express delivery network, and the air freight network.
The new initiative aims to scale the company’s global e-commerce omni-channel fulfillment services, build a “2-3 Day Delivery Circle”, expand express delivery service regions, and establish an international aerial network. These will enable highly-efficient global supply chain and logistics services for overseas clients, Chinese brands and cross-border merchants. At the event, JD Logistics also announced the launch of “Simplified Reverse Returns Service” and “Overseas Warehouse Bulky Item Delivery and Installation Service”.
JD Logistics plans to expand and open additional overseas warehouses in the next 12 months, increasing the total floor area by 100%. This will allow the company to continue to build on its reputation as a trusted supply chain infrastructure service provider with overseas warehouse business at the core of international expansion.
2-3 Day Delivery Circle Enabled by Overseas Warehousing and Delivery
Over the years, JD Logistics has implemented the philosophy of “placing goods as close to consumers as possible” through building a supply chain logistics network that helps clients and merchants achieve local stocking.
In 2025, JD Logistics will complete a “2-3 Day Delivery” service circle. This will enable clients and consumers in 19 countries to enjoy fast logistics service through JD Logistics’ more than 50 self-operated overseas warehouses. By that time, the total overseas warehouse floor area will achieve a 100% increase.
Currently, JD Logistics’ 2-3 Day Delivery is already offered in multiple countries including the U.S., the UK, France, Germany, Poland, the UAE, Japan, South Korea and Australia. In fact, some regions can now take advantage of one-day delivery services.
In 2025, JD Logistics will also accelerate the launch of new warehouses in Southeast Asia, Japan, South Korea, Middle East, Europe and Americas. With a highly efficient and collaborated supply chain, the “2-3 Day Delivery” service range will be further expanded in these regions.
Efficient Omni-channel Fulfillment Service for Global E-commerce
Leveraging extensive global logistics infrastructure and service network, JD Logistics provides clients with “Global E-commerce Omni-channel Fulfillment Service” that enables seamless multi-channel fulfillment with unified inventory.
JD Logistics also provides a full range of transportation services including sea freight, air freight, truck dispatch, and trailer services, and value-added services such as B2B/B2C shared warehousing, integrated forward and reverse logistics, bulky-item delivery and installation, and more.
Simplified Reverse Returns Service
To address challenges associated with after-sales processing, JD Logistics’ “Simplified Reverse Returns Service” will support returns from any ordering location, quality inspection for resale, and disposal or destruction of damaged items. The entire process can be completed within 72 hours, offering an extremely efficient and hassle-free solution.
Overseas Warehouse Bulky Item Delivery and Installation Service
JD Logistics has extensive experience in dealing with bulky-item’s delivery and installation. The “Overseas Warehouse Bulky Item Delivery and Installation” service will tackle common industry issues such as service separation, high damage rates, and limited-service resources. It offers diverse solutions for varied large-sized products, including doorstep delivery, integrated delivery and installation, supported by multi-channel truck dispatch resources.
Building the Global Supply Chain’s “Aerial Artery”
JD Logistics is also developing a “11668” global supply chain to facilitate cross-border logistics, forming an “Aerial Artery” that reaches the globe. It is consisted of:
1: One global air transportation hub in Wuhu Global Port.
1: One main base for JD Airlines in Nantong, Jiangsu province.
668: To build six regional air hubs, home and abroad, with 68 dedicated all-cargo air stations.
JD Express Delivers to Nearly 80 Countries and Regions
Since launching its international express delivery service in late 2023, JD Express has introduced two major products: “International Express” and “International Standard Express.” These services offer tailored solutions to meet the diverse needs of both merchants and consumers.
To date, JD Logistics’ international express delivery service has been extended to nearly 80 countries and regions, with the fastest delivery from China to European and North American countries being within only three days.
JD Logistics will accelerate the international business development and continue to establish an integrated supply chain logistics network that spans the globe, supporting cost reduction, greater efficiency, and high-quality development opportunities for businesses and industries.
Dec 6, 2024|
JD Logistics Reports Record Growth During Start of Holiday Shopping Season
JD Logistics (also known as JINGDONG Logistics), the logistics arm of JD.com, announced a record increase in orders processed through its global overseas warehouse network on Black Friday.
JD Logistics’ global supply chain supported merchants and brands worldwide across a diverse range of industries, including apparel, electronics, home decor, food, fast-moving consumer goods, and both online and offline retail.
In Europe, JD Logistics’ warehouses in the Netherlands, the UK, France, Poland, Germany and Spain saw outbound orders increase by 200% on Black Friday. The on-time outbound rate for at least one retail brand in Poland was100% even as the brand’s volume order doubled.
In North America, JD Logistics manages more than 20 self-operated and collaborative warehouses. A beverage container brand’s order volume increased over 300% and a leading suitcase brand increased by 400%. Overall, JD Logistics secured a 24-hour on-time outbound rate of as high as 99.8%.
In Australia, order volume from its No. 2 warehouse in Sydney was also record-breaking. In Japan, the company’s No.1 collaborative warehouse saw order volume increase rapidly. The company can already ensure same-day fulfillment with outbound efficiency exceeding the local industry average, greatly enhancing merchant operation and customer shopping experience.
Cutting-Edge Supply Chain Innovations
JD Logistics leverages advanced automation technologies, intelligent human-machine synergy strategies, and an integrated suite of warehousing and supply chain management systems. These innovations enable seamless B2B and B2C omnichannel fulfillment, while accommodating complex logistics models, including reverse logistics, back-order processing, and kitting and bundling services. Even during peak seasons, its system can secure stable and efficient processing of orders.
Data shows the overall on-time outbound rate for JD Logistics’ overseas warehouses reaches as high as 99%. Thanks to the application of automation technologies such as AGVs and sorting robots, order picking efficiency has been increased by five times compared with traditional methods.
Its robust warehousing network is complemented by diverse final-mile transportation resources. In the U.S., it also includes a self-operated truck fleet, enabling services such as port drayage, retail store delivery, warehouse transfers, and transshipments.
Commitment to Global Expansion to Facilitate Business Success
JD Logistics drives operational efficiency and cost reduction for its clients. With nearly 100 bonded, direct-mail, and overseas warehouses spanning the globe, the company ensured a smooth and timely fulfillment experience for global partners.
As of June 2024, JD Logistics operated nearly 1 million square meters of warehouse space in key markets, offering localized services to international clients and Chinese brands expanding globally. Its international cargo flight network continues to grow, enhancing cross-border transportation services to destinations globally.
JD Logistics is committed to doubling its overseas warehouse space by the end of 2025 as part of its broader global supply chain strategy. This expansion also includes growing its network of bonded and direct-mail warehouses and extending its international express delivery services.
JD Logistics remains dedicated to supporting global businesses of all sizes, delivering precision, speed, and excellence in supply chain management.
JD Tops the Ranking of Green Packaging Actions in China’s Express Industry
