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.
Jul 17, 2024|
JD.com Earns Top 1% Ranking in S&P Global’s 2024 Sustainability Yearbook 2024 (China Edition)
JD.com is proud to announce its achievement of the “Top 1% S&P Corporate Sustainability Assessment (CSA) Score” in S&P Global’s 2024 Sustainability Yearbook for China, released on July 16th. As the sole leader in its industry to receive this distinction, JD.com was also recognized as an “Industry Mover,” affirming its leadership in sustainable practices.
S&P Global’s Sustainability Yearbook (China Edition) aims to identify and recognize Chinese companies that demonstrate sustainable development advantages in their respective industries. This recognition comes after a rigorous assessment of more than 1,700 Chinese companies.
Earlier this year, JD.com was recognized as an “Industry Mover” in the Yearbook’s global ranking for the first time.
JD.com also released its 2023 ESG Report on July 16th, which details its ongoing commitments and advancements in Environmental, Social, and Governance (ESG) domains, underscoring the substantial societal, industrial, and consumer value generated over the past year.
Download 2023 JD.com ESG Report
2023 ESG Report Highlights:
Environmental Achievements:
The trade-in service promotion of home appliances inside a JD Mall in Chongqing
- Pioneered the use of 17.03 million reusable transfer bags, averting the need for nearly 300 million single-use bags.
- Transitioned to 8,290 self-owned new energy vehicles, reducing approximately 35,200 tons of greenhouse gases annually.
- Established distributed photovoltaic systems across 31 intelligent industrial parks, collectively generating 190,000 MWh yearly—offsetting 189,000 tons of CO2.
- Through trade-in initiatives, recycled over 15 million old home appliances and pieces of furniture.
- Engaged 66 million users in sustainable practices, resulting in 122 million green purchases.
Societal Contributions:
A JD courier prepares to collect freshly picked fruits for direct farm-to-table delivery
- Recognized nationally for “Excellent Work in Building Harmonious Labor Relations.”
- Employed over 360,000 frontline workers, 80% of whom are from rural areas.
- Achieved a merchandise inventory turnover of 30.3 days.
- Invested 1 billion yuan in subsidies and resources for the second “Agricultural Specialties Shopping Festival,” boosting over 2,000 agricultural zones.
- Operated over 18,000 home appliance stores, covering 600,000 administrative villages.
- The JD Foundation donated over 122 million yuan, including nearly 70,000 books to over 100 primary schools, through the “Starlight Transmission” children’s book donation program.
Governance:
JD employees engage in a group discussion during a training session
- Achieved a 100% employee sign-off rate on the “JD.com Anti-Corruption Commitment,” with all employees completing business ethics and anti-corruption compliance training, resulting in zero related litigation cases.
- Spearheaded the creation of a green supply chain technology platform, starting with 40 patents.
- Held 8,209 patents globally, with 22,677 applications filed. Upheld exemplary standards in information security, with no breaches or fines.
- Achieved a 42.9% female board membership, with JD’s practices in gender equality advancing in the workplace recognized by the United Nations Global Compact (UNGC).
In March 2024, JD.com refined its mission to “Making Lives Better through Technology,” reflecting its deep commitment to leveraging technological innovation for societal benefit and sustainable development.
For further details on JD.com’s ESG efforts, please refer to the 2023 ESG Report available on our website.
Jul 12, 2024|
JD.com Secures Direct Supply of Fresh Durians from Malaysia
On July 9th, JD Super, the online supermarket division of JD.com, signed a direct procurement agreement with Malaysia-based Tanah Makmur Berhad (TMB) to import fresh durians, including popular varieties such as Musang King and Black Thorn. The first shipment of the natural tree-drop fruit is expected to arrive in China in September.
This collaboration follows the recent signing of the Protocol on Phytosanitary Requirements for the Export of Fresh Durian from Malaysia to China on June 19th, a significant milestone aimed at bolstering trade links between the two markets.
Ahead of this partnership, JD Super’s procurement team visited durian orchards in Raub, Pahang, known as the “home of Musang King,” to inspect the quality of the naturally ripened fruits. The team also visited local suppliers and processing factories to identify partners that meet JD’s stringent standards for safe and reliable delivery.
JD Super’s director procurement team at a durian orchard in Raub, Pahang, Malaysia
TMB manages an extensive durian plantation spanning over 2,500 acres in Pahang, with over 100,000 durian trees.
At the signing ceremony, a JD Super spokesperson expressed confidence in the company’s established supply chain capabilities to facilitate the entry of Malaysian fresh durians into China. Leveraging JD’s logistics infrastructure, the imported durians will benefit from full cold chain delivery across China, ensuring product quality and timely distribution.
Sultan Abdullah (second from the left), the sixteenth King of Malaysia, attended the signing ceremony
China is the world’s largest importer and consumer of durians, accounting for over 80% of the global annual fruit production. Since approving the import of frozen durian pulp and paste in 2011 and whole frozen durians in 2018, China now receives 78% of Malaysia’s durian exports, highlighting the strong demand within the Chinese market.
(vivian.yang@jd.com)
JD.com Launches JD NOW: Transforming On-Demand Retail with Instant Delivery
