May 24, 2024|
JD.com Earns Spot in Gartner Supply Chain Top 25 for 2024
JD.com, also known as Jingdong, was recently recognized in the Gartner Supply Chain Top 25 for 2024. This recognition highlights JD.com’s excellence and leadership in the global supply chain sector. As the only major online retailer from Asia on the list, JD.com joins industry leaders like Amazon, Apple, and Schneider Electric.
According to Gartner, the companies recognized on this year’s list embraced in three trends: attracting and engaging talent, AI-driven advances, and antifragile supply chains. JD.com’s inclusion on this list underscores its success in navigating complex challenges while delivering exceptional value to customers worldwide.
“The supply chain organizations in this year’s Top 25 were notable for better protecting growth rates in a challenging operating environment, while at the same time delivering more sustainable operations,” said Simon Bailey, VP Analyst with the Gartner Supply Chain practice. “The best supply chains now have ESG criteria firmly embedded in their operations, while delivering higher than average growth rates, better returns on physical assets (ROPA) and stronger margins.”
“We are honored to be recognized in the Gartner Supply Chain Top 25 for 2024 for our efforts in driving innovation in the global supply chain ecosystem,” said Hao Hu, Head of Supply Chain R&D at JD.com. “JD.com has developed cutting-edge technologies such as explainable forecasting, autonomous replenishment, and an intelligent carbon management platform to create a resilient, efficient, and sustainable supply chain that delivers value to customers worldwide.”
Significant investment in new technologies and infrastructure has enabled JD.com to continuously enhance its supply chain efficiency and agility, achieving an industry-leading 29-day turnover rate (in Q1 2024) while managing an extensive portfolio of over 10 million self-operated SKUs. Currently, JD.com boasts an automated procurement rate exceeding 85%, all while maintaining an average inventory availability of no less than 95%.
Advanced Technology for Resilient Supply Chains
In February, JD.com was awarded Gartner’s “Power of the Profession Supply Chain Awards for 2024” for its research in probabilistic forecasting and explainable AI technology. This technology has built a resilient planning system that delivers reliable decision-making despite unpredictable disruptions and rapid market changes. Integrating probabilistic forecasting with explainable AI significantly enhances supply chain agility and resiliency, especially during complex shopping scenarios like large-scale promotions and disruptions such as extreme weather conditions. This technology has boosted supply chain planning accuracy from 65% to 90%, reduced vendor lead times by 15%, and enabled JD to maintain a high service level.
Adopting GenAI for Industry-Specific Scenarios
JD.com’s advanced innovation in applying generative AI (GenAI) was also recognized by Gartner. The company launched a large language model (LLM), ChatRhino, for industry-specific applications. The model combines generalized data with JD’s proprietary intelligent supply chain data to address challenges in sectors like retail, logistics and finance. Businesses can utilize ChatRhino for commercial applications like intelligent customer service and AI marketing.
Global Footprint of Next-Gen Supply Chain
JD.com continues to expand its global footprint by replicating elements of its world-class logistics and supply chain solutions from China to address supply chain challenges in Europe, North America, the Middle East, Southeast Asia, and more. JD Logistics’ overseas warehousing operations already offer same-day fulfillment services in key European markets and rapid two-to-three-day delivery across 90% of regions in the United States. Recently, JD Logistics announced a significant expansion of its express delivery service, enhancing the international express delivery experience from China to 23 global destinations.
Intelligent Carbon Management Platform for Sustainable Supply Chain
On May 13, FORTUNE China announced its “China ESG Impact List 2024,” marking JD.com’s third consecutive appearance for its exceptional performance in environmental, social, and governance (ESG). Last year, JD Logistics introduced the Supply Chain Emission Management Platform (SCEMP), a groundbreaking platform for managing the carbon footprint of logistics transportation. SCEMP accurately calculates carbon emissions based on the actual routes of transportation vehicles. “Verified to encompass over 140 types of carbon emission factors for road transportation in China, SCEMP is the first of its kind in supply chain carbon management,” said Christiana Wang, a carbon reduction expert from JD Logistics.
About the Gartner Supply Chain Top 25
Supply Chain Top 25 ranking comprises two main components: business performance and community opinion. Business performance in the form of public financial and ESG (environmental, social, governance) data provides a view into how companies have performed in the past three years, while the community opinion component gives a peer and Gartner expert view to companies’ future potential and reflects leadership in the supply chain community. These two components are combined into a total composite score.
Gartner derives a list of companies from a combination of the Fortune Global 500 and the Forbes Global 2000. In an effort to maintain the list of companies evaluated at a manageable level, a general annual revenue threshold of $15 billion has been applied and companies without physical supply chains are excluded.