Mar 2, 2023|
Inside Look: Introducing JD.com’s Newest Self-Operating Warehouse in California
JD Logistics United States, JD.com’s North American logistics arm, recently announced the opening of its third self-operating warehouse and distribution center in California.
The new warehouse, together with the company’s No.1 and No.2 California warehouses, will create more than 300 local jobs while growing the JD.com’s footprint to over 1.3 million square feet of warehousing space throughout the state.
Joining the company’s best-in-class global logistics network, JD.com’s new warehouse provides omnichannel fulfillment services for both online and offline orders and is a testament to the company’s commitment to utilizing cutting-edge supply chain technology.
“Demand has shifted from the major e-commerce platforms to smaller independent operators, which has led to fragmented supply chains, adding further complexity and challenges to supply chain management, said Gordon Lu, General Manager of JD Logistics United States. “As more and more retailers are shifting from brick-and-mortar stores to e-commerce platforms, retailers continue to sell their products on multiple e-commerce platforms, which requires utilizing multiple warehouses to handle B2B and B2C orders, dramatically increasing their holding costs. This is a challenge JD Logistics is uniquely equipped to solve.”
In this new generation of fulfillment, JD Logistics is replicating elements of its world-class logistics operation in China and bringing those capabilities to address supply chain challenges in North America, Lu explained. This includes providing greater flexibility, inventory optimization, and storage cost reduction to retailers.
One of JD Logistics’ warehouses in California utilizes a container transport unit (CTU) robot system.
Goods are delivered to the warehouse by trucks, where they’re offloaded onto a network of automated conveyors and swiftly scanned, sorted, and stored by fast-moving, self-operating robots. This system allows warehouse employees to wait in designated working stations while the CTUs pick up and drop off goods. Image scanners check the packages in microseconds, while JD’s smart logistics system calculates where the packages should be dropped off. The packages are then grouped by region into larger bins, which are picked up by forklifts and brought to the corresponding trucks for delivery to their final destination.
JD.com’s CTU system helped increase the number of storage units from 10,000 to 35,000 by making full use of the height of the warehouse and improved operating efficiency by 300%.
In addition to warehousing, JD Logistics United States is among the few third-party logistics companies to provide transfer, last-mile delivery, aftersales and maintenance, cross-border transportation, and other services in one stop. JD Logistics’ industry-leading logistics automation capabilities also extend the order cut-off time from the industry average of 2:00 PM to 3:00 PM, giving merchants who work with JD Logistics an extra hour each day to have their same-day orders processed for delivery.
In addition to its three California warehouses, JD Logistics United States also operates two warehouses in New Jersey and one in Georgia, enabling the company to deploy inventory across the country and ensure products are placed closer to end-consumers, further shortening delivery time.
“Two-to-three-day delivery currently covers 90% of our regions, and we’re aiming to ensure two-day delivery across the entire country in the future,” said Lu. “This will eliminate barriers in the supply chain and enable us to elevate the already best-in-class logistics services we provide to our customers.”
JD Logistics operates over 1,500 warehouses in China, and its international business operates approximately 90 bonded warehouses, international direct mail warehouses, and overseas warehouses globally, covering an aggregate gross floor area of approximately 900,000 square meters with an over 70 percent increase year-over-year.
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.
Mar 22, 2024|
Sportano and JD Logistics Collaboration Boosts Operational Efficiency by 200%
Sportano, the fast-growing Poland-based multi-brand sports retailer, and JD Logistics (also known as JINGDONG Logistics), a global leader in logistics and supply chain solutions, announced a significant 200% increase in Sportano’s warehouse operational efficiency since their collaboration began in 2023.
Sportano stands out as a comprehensive destination for sports enthusiasts, offering an extensive range of sporting equipment, apparel, and accessories from leading brands. As a digital-first retailer, Sportano has expanded its reach across Europe with its robust online platform, complemented by its inaugural brick-and-mortal location in Warsaw, Poland, launched in 2022. The retailer’s rapid growth underscored its need for omnichannel logistics support so it could continue providing exceptional customer service to sports enthusiasts across Europe.
The collaboration between Sportano and JD Logistics has effectively addressed Sportano’s logistical challenges, including managing a vast and varied inventory of over 100,000 product types, ranging from small items like fishhooks to larger items such as skis and tents. The seasonal nature of sporting goods and the need for omnichannel fulfillment further complicated the logistics process.
JD Logistics introduced a suite of advanced technological solutions, including the deployment of Automated Guided Vehicles (AGV) equipped with flexible and interchangeable storage receptacles. This innovative approach, coupled with an independently developed intelligent Warehousing Control System (WCS), has enabled efficient management of Sportano’s inventory, accommodating seasonal fluctuations and streamlining both direct-to-consumer and business-to-business orders.
The partnership between JD Logistics and Sportano has not only boosted Sportano’s operational efficiency by 200% but also set new standards for logistics excellence in the sports retail sector. The integration of cutting-edge technology and intelligent systems has transformed Sportano’s warehouse operations, ensuring more vigorous, flexible, and efficient order fulfillment.
Mengyao Chen, director of international business development at JD Logistics’ innovation lab JDL-X, said, “We are proud to partner with Sportano and apply our logistics expertise to tackle the unique challenges of the sports retail industry. This collaboration underscores our commitment to innovation and our ability to enhance operational efficiency for our clients.”
Tomasz Kupidura, Chief Logistics Officer at Sportano, said, “Working with JD Logistics has revolutionized our logistics operations, enabling us to meet our customers’ needs more effectively and efficiently. This partnership has been instrumental in our growth and success across the European market.”
JD Logistics’ technology products and solutions have garnered significant acclaim among external clients across diverse industries, including electronics, industrials, apparel, medicine, and automobiles, with logistics technology projects launched in over ten countries and regions globally, spanning Asia, Europe, Oceania, and North America. By bringing its expertise to international markets, JD Logistics aims to redefine global logistics standards, advancing intelligent supply chain capabilities and driving innovation in the industry.
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