May 25, 2020|
How JD became one of the “Three Treasures” during COVID-19?
by Vivian Yang
Mobile phones, WiFi, and JD are the “three treasures” for COVID-19 quarantine, as people jokingly say in China. Compared with the SARS quarantine 17 years ago, thanks to the fast development of e-commerce in China, convenience and goods supply have greatly improved. Accelerated growth of the industry is expected as COVID-19 has prompted people’s online shopping habits to leapfrog 1-2 years.
Why has the great toilet paper panic of 2020 not been seen in China? The simple answer is that for many Chinese shoppers, they just order things online and get them delivered to their homes.
Whereas a more insightful answer would be that it is thanks to the amazing supply chain and logistics services enabled by e-commerce companies like JD.com that spared customers the wrestling in supermarkets as all the shopping can be done at their fingertips.
JD.com is delivering through Chinese New Year
1.Non-stop service
From a business perspective, JD always strives for a superior shopping experience for its customers. That means people’s shopping demand must be fulfilled wherever and whenever they need, with no exception during the Chinese New Year holiday when almost everything shuts down. In addition, JD enjoys a large household customer base in China who shop for more high quality and quantity products for family use, especially during the family reunion time. As a result, eight years ago, JD decided to stay open during Chinese New Year, so far it is still the only e-commerce company providing delivery services during this time.
When COVID-19 broke out, JD decided to stay consistent and even marshaled more resources and staff to support product supply, warehousing, distributing, delivery, and customer service against all odds. Even with road closures disrupting transportation, knowing someone is running for their orders during this special time gave people peace of mind to hunker down at home.
JD leverages technology to address the imbalance between demand and supply
2.In stock
Nothing is more assuring than finding products are “in stock” and available for shipment during the hoarding frenzy. As a platform of huge scale, it is not only important for JD to quickly collaborate with its merchant community to guarantee products supplies, but also critical to predict how to distribute them effectively to meet urgent demands.
Using big data, JD’s supply chain engineers detected the sign of epidemic at a very early stage. They incorporated the SEIR infectious disease model and demographic data in their supply chain management system to ensure limited medical materials will be prioritized to allocate to high-risk places. At the same time, fast-changing demand requests are synchronized in real-time with its procurement team and suppliers, helping them to make further production decisions in response to the market.
For highly sought-after products in the epidemic period, there is a big difference between available for shipment and available for ordering. JD engineers created a risk alert model powered by AI to monitor the merchants’ product prices and inventory status so as to provide the most transparent and accurate information to its customers and partners.
JD’s 7FRESH supermarket ensured fresh groceries supply during COVID-19
3.On the way
Same-day and next-day delivery promises during COVID-19 were honored to the maximum level by JD Logistics. Thanks to its logistics network that consists of over 730 warehouses across China, products are stored as close as possible to its customers.
In ordinary times, JD’s products will go through its regional distribution center to different front distribution centers based on the demand. While, to enhance fulfillment rate, JD engineers built a multilevel network optimization system that recalculated inventory capacities in its provincial and city level warehouses and redesigned the transport routes to place more emergency and grocery products directly in the front distribution centers for even quicker delivery. As such, JD’s nationwide fulfillment rate during the epidemic time remained at over 95%.
Same-day delivery is not a luxury to Chinese customers anymore, as JD is now delivering daily and fresh groceries to their doorsteps by the minute. Products such as meat, seafood, vegetables, fruits are frequently ordered as people stay at home. By leveraging its omnichannel retail system, JD customers’ online orders can be matched with the nearest offline store to make an instant delivery. Some products can arrive within 15 mins.
Through serving customers and supporting society at this tough time, it also deepened JD’s understanding of its capacity and role for the future. People’s appreciation of JD’s courage, commitment, and innovation once again confirmed its belief that as a retailer in an age where people’s shopping pursuits are increasingly diversified and personalized, merely satisfying customers’ basic needs for goods won’t be enough. It is the aspiration to bring people trust and love when JD deals with each order that makes the company a real partner of its customers, partners and society.
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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JD Super’s Ninth Annual “Baby Party” Campaign: Supporting Families with Newborns
JD Super, JD.com’s omni-channel supermarket division, successfully concluded its ninth annual “Baby Party” campaign, which ran from April 1st to 14th. Collaborating with leading brands from home and abroad, the campaign introduced new products and services designed to improve the shopping experience and reduce expenses for families with newborns.
Pioneering services included the “Fresh Milk Powder Express,” guaranteeing delivery of farm-to-consumer baby formula within 28 days, and the “Free Diaper Offers for Newborns” initiative, set to distribute one million diaper packs annually. Moreover, the “Life’s First Bottle” project significantly reduces the costs of high-quality milk bottles by offering them exclusively online at a 50% discount.
JD Super’s specialized after-sales services extend to over 90% of the company’s self-operated products, offering services such as free returns or exchanges. Another highlight was the introduction of the Chun Rui milk formula, developed in partnership with Feihe, a leader in infant milk production. This collaboration ensures top-quality products at better value for families.
Additionally, JD Super launched an online portal dedicated to public welfare activities, which promotes cost-saving measures, shares knowledge on baby care, and supports charity initiatives.
As part of its commitment to philanthropy, JD Super donated essential baby supplies valued at over one million yuan to 1,000 families in the economically disadvantaged Liangshan Yi Autonomous Prefecture of Sichuan Province, supporting local parents in this region.
The 2024 Report on Cost of Childbearing and Childrearing in China shed light on the challenges faced by parents, including limited free time and growing anxiety over rising costs and product safety. JD Super aims to mitigate some of these concerns by providing support to families nationwide.
JD News Roundup Vol. 4
