- Nov 19, 2020
- Business Update
JD and Tsinghua University Launch Supply Chain Trends Report
by Ling Cao
JD Big Data Research Institute and Tsinghua China Data Center (CDC) have jointly launched a report on digitalized and intelligent supply chain development trends in China. According to the report, the open supply chain provided immense value for customers and brands during the latest Singles Day Grand Promotion (Nov. 1st-11th), helping to optimize cost, efficiency and experience. Going forward, supply chain development will be led by three trends: digitalization and intelligence, integration, and socialization.
Yiming Wang, vice chairman of the China Center for International Economic Exchanges (CCIEE) and former vice president of the Development Research Center of the State Council (DRC) shared four suggestions for the future of supply chain development: “Integrate online and offline, develop digitalized applications, improve an inclusive and prudent regulatory system, and optimize digitalized innovative ecosystem.”
Yiming Wang speaks during the event
Xianchun Xu, director of the China Data Center of Tsinghua University and former deputy director of the National Bureau of Statistics said, “The digital economy is developing rapidly. Digital technology is influencing the enterprises’ production and operations, the way of governance and people’s lifestyles. It can penetrate every aspect, and promote technological progress.”
Xianchun Xu speaks at the event
JD and Midea have cooperated in supply chain and provide an example of how digitalization and intelligence can achieve synergy. The companies have worked together in inventory forecast, procurement and fulfillment in order to achieve cost-effective operations. As a result, the automatic ordering process in the warehouse has improved from 10% to 30%, and transportation allocation optimization of refrigerators between warehouses has saved RMB 6 million yuan.
During Singles Day, JD’s smart supply chain helped 33,000 brands covering 5 million products with sales forecasting, and algorithms enabled 200 cities to realize putting the most frequently bought inventory nearest to customers.
Consumer-to-Manufacturer (C2M) is an example of supply chain integration. During Singles Day, JD sold over 100 million C2M products. C2M home appliances sales increased five times YoY, accounting for 26% of home appliance sales.
JD’s cloud warehouse solutions, fast drug delivery and auto services are all examples of how supply chain socialization can be applied in omnichannel strategy, making the whole process more agile.
According to the report, as a technology and service company with supply chain at its core, JD’s open strategy for supply chain creates great social value. First, it can help with transform the supply side and promote China’s high quality economic development. Second, it can help with dual circulation. Last, it can help unlock consumption potential.
Yiming Wang added, “Promoting the digital transformation and integration of smart supply chain and the real economy can effectively improve production efficiency and the profitability of enterprises, and inject new momentum into high quality development.”