Apr 29, 2020|

JD.ID COO: In-house Logistics Can Deliver a Better Customer Experience


by Martin Li

In-house logistics can deliver better customer experience in Southeast Asia, Dr. Kevin Lv, Chief Operating Officer of JD.ID, said in a recent media interview.

JD.ID is JD.com’s e-commerce joint venture in Indonesia. This year marks the company’s fourth anniversary.

Dr. Kevin Lv, COO of JD.ID.

Dr. Kevin Lv, COO of JD.ID.

“Although it takes longer to build logistics infrastructure, compared with using an integrated logistics, in-house logistics can deliver a better customer experience. Logistics is the fundamental service in the e-commerce industry, and it’s a must for players to provide the best customer experience,” said Lv.

Logistics is the biggest pain point in the development of e-commerce in SEA. Customers’ demand for fast delivery service aren’t met, according to Lv.

In Indonesia, JD.ID has extended its delivery service to over 90 percent of the country’s 34 provinces via its logistics network, which is composed of over 69,000 square meters of warehouses and over 16,000 square meters of sorting facilities.

“The massive network reduces the distance between products and customers, which consequently increases delivery speed,” said Lv.

JD.ID also sought to improve its delivery service via strategic partnerships in the region. The company has partnered with Gojek on J-Express(JX), a last-mile delivery logistics joint venture.

JD.ID has achieved same-or-next-day delivery for over 85 percent of its orders throughout the country – an impressive achievement in a country of over 17,000 scattered islands.

Customer satisfaction rate with delivery timeliness for products sold on the company’s direct-to-consumer platform has reached almost 99%.

Lv also mentioned that e-commerce logistics in SEA still faces many problems like lack of standard logistics warehousing and logistics talent, difficulty in logistics management and cultural differences.

Logistics costs account for over 20% of the GDP in SEA countries. In contrast, the proportion is between 5 to 6%in the United States,  7 to 8% in Japan, and 13 to 15% in China, according to statistics cited by Chinese media.